What role does risk analysis play in the risk assessment process?

Risk analysis serves a crucial function in the risk assessment process by providing a foundation for decision-making concerning risk management. This step involves identifying risks, assessing their potential impact, and determining the likelihood of their occurrence. By conducting thorough risk analysis, organizations can prioritize risks based on their severity and the likelihood of their occurrence, allowing decision-makers to allocate resources and devise strategies effectively.

Through insight gained from risk analysis, organizations can make informed choices about which risks to mitigate, how to address potential threats, and where to implement security measures, ultimately shaping their overall risk management strategy. This methodical approach ensures that organizations are not only aware of risks but can also respond proactively, enhancing their resilience against potential harm.