How to create company risk register

Last updated: 2021-10-08
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How to create a risk register from an asset register

Creating a risk catalog in a company is certainly a challenge. It is therefore important to know where to start and how to proceed with the creation. In this article, we will look at one of the most common ways of creating a risk catalog, based on a company asset organizer. This method is quite widely used and is especially common in the information security field. 

What is a risk organizer?

First, let's explain the basic concepts. A risk organizer or risk catalog is a list of all documented risks. For each individual risk, its basic characteristics are described, such as its impact, its likelihood, to which asset it relates and what measures in terms of corrective and preventive actions are related to the specific risk. The risk organizer is a valuable resource for companies and is at the heart of risk analysis. We then prioritize these specifically according to a range of impact and likelihood to prioritize and dedicate measures to the most important risks - those with high impact and likelihood of occurrence. 

It is also useful to have such a document for compliance purposes. It can also serve as an organizer for continuous improvement.

Typically, risks are assigned to a risk owner. This is also recorded in the organizer. The risk owner is the person who is ultimately responsible for the risk (ensuring that it is properly managed).

What is an asset organizer?

An asset organizer is an archive of assets. It is a document that contains all of the recorded assets of an organization and helps in the asset management process. It can record information such as serial code, date of acquisition, the value of the asset and more to ensure accurate tracking. It is useful for organizations to have an asset organizer. It can help to keep track of what assets the organization has and also the people who are responsible for/own each asset. This serves to ensure accountability to ensure that they are properly taken care of.

What is the asset risk organizer?

The asset risk organizer is a combination of both a risk organizer and an asset organizer. It is a document that links risks to assets. Note that risk can be associated with a single asset or multiple assets. A good example of an asset risk might be - "loss of company laptop". This is a risk that is linked specifically to an asset. The value of an asset risk organizer is that it gives you the ability to identify the most vulnerable assets. That is, those that are exposed to the greatest level of risk. You can then take steps to ensure they are protected. Assets can be physical, digital or even people or groups of people (e.g. employees). Ensuring your assets are protected from risk is an important part of risk management.

Identification of asset risks

Before starting an asset risk assessment, you should identify all your assets. This is an important step as it will help identify the risks associated with the assets. An organization's assets can include anything that the organization values. This may mean assets that have a high monetary value or those that are essential to the operation of the business. When creating an asset organizer, it is also necessary to rank the assets in order of importance/criticality. For example, the sensitive data that you hold and the mechanisms to protect it may be classified as critical assets. By classifying all assets based on their importance to the organization, you can determine which ones to focus on. The outcome of this step will vary from organization to organization. For example, some may prioritize digital assets over physical assets. Some organizations may rely heavily on their employees, while others may rely more on machines.

Once you have created a complete asset organizer, you can begin to identify the risks associated with each asset. Prioritize critical to high-priority assets and work your way down.

Think about all the potential risks associated with these assets. Then rank each risk according to its likelihood of occurrence and the impact it would have. At this point, you will have an asset organizer that ranks assets based on the importance and risks associated with each asset. The risks that are also scored will give you a more comprehensive view of which risks to prioritize. 

In conclusion, an asset-based risk organizer can help you identify and mitigate key threats to your organization. Identifying risks and putting controls in place should be a step that every organization takes. A risk organizer and asset organizer are important tools to help businesses organize and document risks and assets. They provide a comprehensive view of company risks. This enables organizations to make more informed decisions and minimize the level of risk they face.