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Risk Management

Moodi Mahmoudi avatar
Written by Moodi Mahmoudi
Updated over 2 weeks ago

At a glance

NEXT maintains a formal, risk-based program covering business and technical domains (Engineering, Information Security, Finance, Human Resources, Legal, and Sales). Risks are identified, analyzed, scored (impact × likelihood), prioritized, and treated with documented ownership and recurring reviews (at least annually and when material changes occur).

Methodology

  • Identify assets & owners across the in-scope environment.

  • Identify threats & vulnerabilities per asset; record in the risk register.

  • Assess impact & likelihood using defined criteria; compute risk level = impact × likelihood.

  • Assign a risk owner and select a treatment; estimate residual risk post-controls.

  • Document results in a Risk Assessment Report.

Risk ratings & treatment

  • NEXT applies a defined rating matrix to categorize risk (Low/Medium/High/Critical).

  • Treatment options: implement/strengthen controls (mitigate), transfer (e.g., insurance/vendor), avoid (change/stop activity), or accept (when control cost outweighs impact) — with documented justification.

  • All High and Critical risks must be treated; managers may treat Medium/Low for continuous improvement.

Governance & cadence

  • Ownership: risk owners manage treatment plans and report residual risk.

  • Reviews: the risk register and Risk Assessment Report are updated on new findings and reviewed at least annually.

  • Outputs inform controls selection (e.g., SOC 2 / ISO 27001 control mapping) and feed business continuity and incident response planning.

Standards alignment

  • NIST SP 800-30: definition and process for conducting information-security risk assessments.

  • ISO/IEC 27005: guidance for identifying, assessing, treating, and monitoring information-security risks within an ISMS.

  • NIST CSF 2.0:GOVERN/IDENTIFY functions organize outcomes for operationalizing risk management.

FAQ

Q: How often does NEXT AI update the risk register?

At least annually and whenever new risks are identified (e.g., changes in systems, vendors, or threat landscape).

Q: How are risks scored?

NEXT uses defined impact and likelihood criteria; risk level = impact × likelihood. The matrix classifies risks into Low/Medium/High/Critical for prioritization.

Q: Which risks must be treated?

High and Critical risks must be treated; Medium/Low may be treated for continuous improvement, with residual risk documented.

Q: What treatment options does NEXT AI consider?

Mitigate with controls, transfer (e.g., insurance/vendor), avoid (change/stop activity), or accept (with documented rationale and oversight).

Q: Which standards does NEXT AI’s approach align with?

Risk assessment aligns to NIST SP 800-30 and ISO/IEC 27005; risk governance aligns to NIST CSF 2.0.

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