Risk Fundamentals
What is uncertainty?
This ISO Guide 73 definition describes risk as the effect of this on objectives
What is $440 million?
This was the total financial loss Knight Capital suffered in the incident.
What is the CFO / Treasurer?
This C-suite role is the primary owner of financial risk in the governance boundaries table.
What is Northern Rock?
This UK bank's reliance on short-term wholesale debt markets led to the country's first bank run in 150+ years.
What is STRIDE?
This acronym covers Spoofing, Tampering, Repudiation, Information Disclosure, Denial of Service, and Elevation of Privilege
What is a hazard risk?
This term describes a risk that can only ever produce a negative outcome, like fire or theft.
What is Power Peg?
This is the name of the dormant test function that reactivated and caused the incident.
What is risk appetite?
This term (per IRM) describes the amount of risk an organization is willing to seek or accept in pursuit of long-term objectives.
What is Blockbuster?
This video-rental chain declined an offer to buy a young DVD-by-mail startup in 2000.
What is a Process?
This DFD element type is exposed to all six STRIDE threat categories.
What is likelihood?
On the risk matrix, this axis measures how often an event is expected to occur.
What is 45 minutes?
This many minutes passed between market open and when trading was finally halted.
What is risk capacity?
This is the maximum risk an organization is capable of absorbing before failure.
What is opportunity risk?
According to Week 1's four risk types, this is the type of risk Blockbuster failed to embrace.
What is a Data Flow Diagram (DFD)?
This diagram type maps external entities, processes, data stores, and flows to model a system for threat analysis. |
What is People?
This operational risk category (Basel II) includes failure to comply with procedure or lack of segregation of duties.
What is one (out of eight)?
This many of Knight Capital's servers failed to receive the new deployment code.
What is risk exposure?
This is the cumulative total of all individual values actually at risk right now.
What is the rise in US sub-prime mortgage defaults?
This 2007 external event dried up liquidity in wholesale debt markets, triggering Northern Rock's collapse.
What is PASTA?
This seven-stage, risk-centric methodology stands for Process for Attack Simulation and Threat Analysis.
What is embrace?
This is the verb organizations use for opportunity risk, as opposed to minimize, mitigate, or manage.
What is a kill switch?
This is the missing safety mechanism that could have stopped the runaway algorithm quickly.
What is the 4Ps?
This operational-risk framework covers People, Premises, Processes, and Products.
What is 2010?
This is the year Blockbuster filed for bankruptcy.
What is ”What can go wrong?”