Key Steps for Risk Ranking

A.

The risk ranking process involves determining the priority of risks based on their likelihood and potential impact on an organization. Among the options provided, impact assessment is the most important step in risk ranking.

An impact assessment is a critical step in the risk management process as it helps to determine the potential severity of a risk if it were to occur. This assessment involves identifying the potential impact on the organization's assets, including financial, reputational, operational, and legal impacts. The impact assessment helps to understand the magnitude of the risk and provides valuable information for prioritizing risk response activities.

Mitigation cost is also an important factor to consider in the risk ranking process. It involves evaluating the cost of implementing risk mitigation measures, such as controls or insurance, to reduce the likelihood or impact of a risk. However, cost alone should not be the sole factor in determining risk priority.

Threat assessment involves identifying and analyzing potential threats to an organization. While this step is essential in the risk management process, it does not necessarily determine the priority of a risk. Threats are evaluated along with vulnerabilities to determine the likelihood of a risk occurring.

Vulnerability analysis involves identifying weaknesses or vulnerabilities in an organization's systems, processes, or infrastructure. While this step is important, it does not necessarily determine the priority of a risk. Vulnerabilities are evaluated along with threats to determine the likelihood of a risk occurring.

In summary, while all of the steps listed are important in the risk ranking process, impact assessment is the most critical step as it provides information on the potential severity of a risk and helps prioritize risk response activities.