Your organization is about to deploy a new online payment processing system. As part of the risk management team, you are tasked with evaluating the potential risks associated with this system. Which of the following actions is most important to perform FIRST?
Mitigating the risk by implementing an intrusion prevention system (IPS)
Performing risk identification to list potential threats and associated vulnerabilities
Accepting the risk after determining the cost of a potential data breach
Transferring the risk by purchasing an insurance policy for cyber threats
Identifying risks is the first and fundamental step in the risk management process because it allows the organization to understand the potential threats and vulnerabilities that could impact the system. Without first identifying the risks, it would not be possible to assess their magnitude or to plan appropriate risk management strategies.
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What is risk identification in risk management?
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Why is it necessary to prioritize risk identification before other actions?
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What could happen if risks are not properly identified in a payment processing system?