Risk refers to the likelihood of happening of a loss or an event that will lead to loss. The traditional way of conceptualizing a risk as occurrence of events such as floods, earthquakes, and others, has been challenged by developments of new forms of risks such as those with technological attachment, for example computer viruses leading to losses of data. The fact is that the business environment in the current set up is more risky than ever before, with the advent of technology, explosion of the internet, advent of e-government, e-marketing and e-business among other developments (SAN Institute, 2002). The surest option is not the avoidance of tools like the internet and other developments in the workplace (because they are needed to gain other advantages such as lowering advertisement costs), but to put the necessary measures to avoid the associated risks. While many companies have embraced the more recent trends of doing business such as internet transactions, they have been exposed to new forms of threats which are as challenging as well because they are global and firstly virtual attacks in nature. Cyber attacks for example have been increasing with the increase in the number of companies and individuals that use the internet transactions. These attacks have financial impacts to the organizations involved. Mostly, risks will arise from the internal settings of an organization and can be in form of fire breakout, disruption of transport, burglary or vandalism, and lawsuits from staff among others. Internal threats of more advanced nature have arisen in the advent of technology. These include data breaches and data losses. Today, hackers are a threat to the internet business. The threats have caused governments to establish regulations which require certain protocols to be implemented to ensure citizens have a right to privacy among other things. Companies have embraced these moves not only to safeguard customer property and right to privacy, but also to ensure they safeguard their copyrights and business secrets, but still threats exist because of the developmental nature of technology. Companies must therefore be aware of the possibility of such risks, train their staff on them and put necessary measures to counter them. Threats need to be assessed often in the business cycles and continual update of mitigation plans carried out. The fact that it is possible to predict occurrence of disasters in some cases, is a reason as to why there should be plans within organizations or business to assess, analyze and manage risks. The best way possible to avoiding loss, is the knowledge of its possibility to occur, and therefore putting on necessary measures that will reduce the possible loss or eliminate it all together. Almost all business activities will be associated with certain risks, foreseen or not. Knowledge of risks is not only important in putting on the necessary measures
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