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The goal of a risk assessment is to enable an organization to understand its risks thoroughly so that it can manage them effectively. Each organization is required to tailor its risk assessments to fit their industry, business model, customer base, products and services, distribution channels, regulatory environment, and risk appetite. A well-designed risk assessment sits at the intersection of all these elements—covering the specific areas of risk exposure that the organization might face—while targeting the risk management controls that are necessary to mitigate these risks.
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