The following is a list of some of the terminology that is used in the risk management features of AssetChief. Becoming familiar with these concepts and terminology will help use these features.
Risk: A risk is the potential of losing (or sometimes gaining) something of value.
Inherent Value: The value that an asset has independently of any other assets.
Inferred Value: The calculated value of an asset considering other assets that depend upon it.
Business Critical: A type of value that suggests the business cannot function without that asset.
Dependency: When an asset needs another asset to function, it is dependent on that asset.
Risk Appetite: How tolerant you are for risk associated with this asset. For example in an investment you may be more tolerant of risk if the potential return on that investment is high. On the other hand, if an asset is not easily replaceable, you may be less tolerant of risk.
Risk Impact: This is usually a percentage likelihood of a particular risk (if occurring) rendering the asset unavailable for normal use.
Risk Probability: This is a percentage associated with the likelihood of the risk occurring.
Mitigation: Measures taken to reduce a particular risk. For example, taking out an insurance policy can reduce the risk of loss.
Risk Matrix: A type of report expressed as a matrix that shows the priority of risks, with the highest risks in the top right corner, and the lowest risks in the bottom left corner.
Next Topic: Setting Asset Risk Data