What is the first step in the risk management process?

Identifying assets is a crucial first step in the risk management process because it lays the foundation for all subsequent risk assessments. By understanding what assets an organization possesses—including hardware, software, data, and personnel—an organization can better prioritize which aspects are most critical to its operations and thus need protection. Knowing the value, importance, and sensitivity of these assets provides a clear context for understanding potential risks, threats, and vulnerabilities associated with them.

Once assets are identified, other steps in the risk management process, such as identifying threats or assessing vulnerabilities, can be more accurately conducted. Without a solid grasp of what assets exist and their significance, it becomes challenging to effectively manage and mitigate risks that may impact those assets. This foundational knowledge is essential to developing a robust risk management strategy and ensuring the organization can protect its key resources effectively.