The information security risk assessment is an approach to categorize and be aware of the risks to the discretion, reliability, and accessibility of information and information systems. It’s goal is to insure the security and confidentiality of customer records and information to protect against any anticipated threats or hazards to the security or integrity of such records and to protect against unauthorized access to or use of such records or information which could result in substantial harm or inconvenience to any customer. It is essential to the defense of any organization, crucial in ensuring that controls and expenditure are fully appropriate with the risks to which the organization is exposed. However, many conservative methods for performing security risk analysis are becoming more and more unsound in terms of usability, elasticity and in terms of what they produce for the user. The quality of security controls can considerably influence all categories of risk. Examiners and institutions recognized the direct impact on operational/transaction risk from incidents related to fraud, theft, or accidental damage. Many security weaknesses, however, can directly increase exposure in other risk areas. A strong security program reduces levels of reputation, operational, legal, and strategic risk by limiting the institution’s vulnerability to intrusion attempts and maintaining customer confidence and trust in the institution. Security concerns can quickly erode customer confidence and potentially decrease the adoption rate and rate of return on investment for strategically important products or services.

An ample evaluation identifies the significance and sympathy of information and system components and then balances that knowledge with the exposure from threats and vulnerabilities. A risk assessment is a pre-requisite to the formation of strategies that guide the institution as it develops, implements, tests, and maintains its information systems security posture. An initial risk assessment may involve a significant one-time effort, but the risk assessment process should be an ongoing part of the information security program.