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A threat is the potential for something bad to happen. A vulnerability is a weakness or exposure that allows a threat to cause loses. A risk occurs with combinations of risks and matching vulnerabilities. In other words:Risk = Threats x Vulnerabilities|
| 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. | Project Risk |
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| Type | Risk Management | | 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 | Business Risks |
Risks
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