What is the purpose of a risk assessment in the Open FAIR framework?

In the Open FAIR framework, the primary purpose of a risk assessment is to identify and calculate the potential impact and likelihood of risks. This involves systematically analyzing various factors, including vulnerabilities, threats, and potential losses associated with risk events. By focusing on both the impact (which refers to the consequences of a risk if it occurs) and likelihood (which illustrates the probability of the risk occurring), organizations can make informed decisions regarding risk management and resource allocation. This approach is critical in developing a quantitative understanding of risks, which can subsequently guide strategies for mitigation, monitoring, and acceptance.

While minimizing costs associated with risk, enforcing compliance with regulatory requirements, and developing an incident response plan are important aspects of managing risks, they do not capture the core function of a risk assessment. It is essential for organizations to first understand their risk profile through assessment before pursuing these other objectives.