What is meant by the term "risk assessment" in the context of an ISMS?

The term "risk assessment" in the context of an Information Security Management System (ISMS) refers specifically to the process of identifying, evaluating, and prioritizing risks. This is a crucial step in managing information security because it allows an organization to understand the potential threats and vulnerabilities that could impact its information assets.

During a risk assessment, various factors such as the likelihood of an incident occurring, the potential impact on the organization, and the effectiveness of existing controls are considered. This comprehensive approach not only helps in recognizing risks but also aids in evaluating them against the organization's risk appetite and determines the appropriate strategies for risk management. By prioritizing risks, an organization can allocate its resources effectively to address the most critical issues first.

In contrast, implementing security measures to mitigate risks focuses on the actions taken after risks have been identified; documenting past security incidents relates to historical data and doesn't involve the active risk evaluation process; and the auditing of compliance with security policies checks adherence to established procedures rather than assessing risk levels. Thus, "risk assessment" strictly pertains to the initial step of understanding the security landscape through risk identification, evaluation, and prioritization.