Risk Management

What’s Your Reputation Worth? Risk Management as a Numbers Game

How far would you go to save a million dollars? Would you spend three million in the process? It seems like a ridiculous proposition from a monetary standpoint, but Dave Kearns explains why it might not be a bad idea.

Risk management weighs the monetary losses against the long-term losses that the company could suffer, such as loss of reputation. To begin the weighing process, Anderson suggests evaluating risk based on four categories.

  1. Authentication valid, connection safe, access allowed.
  2. Authentication questionable, further authentication asked for.
  3. Authentication valid, connection questionable, authorization level reduced.
  4. Authentication is questionable, connection questionable, access denied.

As you can see, there are three basic variables to consider in risk management: authentication, connection, and access. But the actual implications of the risk stretch much further than that. Maybe you wouldn’t spend $3 million to save $1 million, but you might spend $3 to save the reputation of your company. The long-term worth of risk management stretches much further than the bank account.

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