SECURITY MANAGEMENT  

IPP Consulting recommends a structured approach to risk management.

This approach initially identifies and rates the actual threats to which the client is exposed to, according to both likelihood and consequence of occurrence. Focus is then placed upon addressing High and Medium Risks, without wasting resources on Low Risk threats.

The cost effectiveness of various risk management treatments can be determined by looking at the “optimum level of risk management”. This technique looks at the cost of risk management overlaid with the reduction in risk level to determine the optimum treatment.

In the previous illustration it can be seen that there is a point where the cost effectiveness is at a minimum. This is the optimum level of risk management. The provision of risk management measures beyond this level will generally reduce risk marginally but will significantly add to the total overall cost.