Risk AssessmentTanya Lesa-AtonioCMGT 582November 30, 2015Dr. William GlassenRisk AssessmentA risk assessment is an evaluation that is done to see where the organization stands with their possible outcomes. Risks are crucial to organizations as well as individuals. They can occur in different ways where they can be environmental, natural disaster or human-based activity. It can cause the organizations a huge deal of information, confidentiality, integrity and motivation for personal information. However, in order to minimize this risk for any organization they need to understand how the system is characterized, by identifying threats, its vulnerability, how to analyze the control system, the probability to determine its loss, and how the organization impacts from these risks. Risk assessment is identified as an asset for the organization that will protect or answer the three main questions. These questions are “what assets do the company needs to protect, how these assets are threaten, and what the organization can do to counter these threats. This will assist with providing the data needed for management, operational and technological controls. With these, it will help reduce any risk provider for mitigating controls (Stallings & Brown, 2012). Furthermore, the organization needs to understand that the process continues by selecting an effective plan, policy and needs to be revised every bi-annually. This is why risk assessment is needed within an organization.
The American Samoa Community College faces various risks within the operating section. This is the only higher learning institution in American Samoa; therefore it serves 95% of Samoan students. The institution faces risks such as damaged equipment, outdated technology, huge opportunity for natural disasters and other environmental risks. For instance, American Samoa is always at risks for its disasters. These disasters damage a lot of equipment; therefore, the organization came up with a fee for all students’ that is called lab fees. This fee is used for recovering any losses that is needed for the institution’s technology. Furthermore, not too long ago the Board of Higher Education passed a policy regarding the 5% cash reserve for any emergency disasters. This is where the risk assessment formula can be applied in the organization. First of all, system characterization is the collection of information for the risks that is faced by the organization and its operations (Stalling and Brown, 2012). Data collection involves the individuals, organizations, and departments involved. This information involves student data, employees, and stakeholders that are involved in a large society. The mission for setting up risks assessment program is very much important to achieve the organization, potential risks and also to measure the weight of each risk (Stalling and Brown, 2012).