What is the difference between the risk and risk statement (advance risk assessment)

Venky Kshatriy2 · ‎06-03-2024

What is the difference between the risk and risk statement (advance risk assessment) any proper example.

Its_Sagnic · 3 weeks ago

Let me walk you through a simple example to explain the difference between Risk Statements and Risks in ServiceNow GRC (IRM).

Understanding the Difference

1. Risk Statement (Template-Level)

What it is:
A Risk Statement is a generic, high-level description of a potential threat.
It serves as a standardized template stored in the Risk Library.

Purpose:

Ensures consistent risk definitions across the organization
Defines the methodology (e.g., how the risk should be measured)

2. Risk (Actual Instance)

What it is:
A Risk is a specific, real-world instance of a risk applied to an Entity—such as a department, application, process, or vendor.

Purpose:

Captured in the Risk Register
Holds actual assessment data: Inherent, Control, and Residual risk values
Represents what you actively evaluate in ARA (Advanced Risk Assessment)

Comparison Example: “Data Breach”

Feature Risk Statement Risk (Instance)NameScopeARA Role

Unauthorized Access to Sensitive Data	Unauthorized Access to Sensitive Data – HR Department
Corporate-wide / Generic	Specific to an Entity (e.g., HR Application)
Defines the RAM (e.g., 5×5 matrix)	Executes the actual assessment (Inherent, Control, Residual)

How It Works in Practice

You create one Risk Statement, for example:
“Cyber Attack”
ServiceNow links this statement to multiple entities—e.g.:
- Payroll System
- Customer Database
- Public Website
As a result, you get three separate Risk records, each with its own assessment.
- Payroll System → Critical
- Public Website → Medium

Even though all three use the same Risk Statement, each entity has its own assessment results.

If you find this explanation helpful, please consider marking it as useful and accepting the solution to close the thread.

Regards,

Sagnic