What is the first step in conducting a strategic risk analysis?

The first step in conducting a strategic risk analysis involves identifying the organization's information assets. This foundational step is crucial because understanding what assets need protection is essential for assessing risk. Information assets can include data, software, hardware, and intellectual property, among other critical components.

Once the organization’s information assets are identified, it becomes possible to recognize the various threats that those assets may face, how to prioritize those risks, and what reduction policies should be developed. If this initial identification is overlooked, subsequent steps lack context and could lead to the misallocation of resources and inefficient risk management strategies. Identifying assets lays the groundwork for a comprehensive understanding of risk exposure, aligning risk management efforts with the organization’s goals and ensuring that the most vulnerable or valuable assets are properly protected.