Risk = Threats x Vulnerabilities
| Examples | ||
Threat | Vulnerability | Risk |
Computer virus | Software bug | Information security risk |
Hurricane | Retail locations | Weather risk to a retailer such as revenue disruption or damage. |
Competitor with superior customer service | Poor customer service | Competitive risk |
Recession | Investments in growth stocks | Investment risk |
Innovative new products on the market | An inability to innovate | Innovation risk |
The unemployment rate increases | Loans and credit card products | Credit risk |
An employee is sick for a week | The employee is assigned work on a project activity that is on a project's critical path. | |
| Overview: Threat vs Vulnerability | ||
Type | ||
Threat Definition | A potential for something bad to happen. | |
Vulnerability Definition | A weakness or exposure that allows a threat to become a risk. | |
Related Concepts | ||
