Which of the following best describes the relationship between assets and risk?

The relationship between assets and risk is best described by the idea that the value of assets determines the level of risk. This concept acknowledges that the potential impact of losing or compromising an asset is closely linked to its value to the organization. An asset that holds significant value—whether it be financial, intellectual property, or other critical resources—naturally carries a higher level of risk when considered in terms of potential threats and vulnerabilities it may face.

For example, an organization may consider sensitive customer data to be a high-value asset because its loss could lead to financial damage, reputational harm, and legal repercussions. As such, this high value creates a heightened level of risk that needs to be managed appropriately. By prioritizing risks based on the value of assets, organizations can allocate resources effectively to safeguard those that carry the greatest potential impact.

The idea that all assets are equally at risk is a misconception because it overlooks the varying significance different assets hold and their unique vulnerabilities. Similarly, the notion that only tangible assets are subject to risk ignores the reality that intangible assets, like reputation and proprietary knowledge, also face various risk factors. Lastly, the perspective that risk is only associated with physical security is overly narrow, as risks can arise in multiple forms, including cyber threats,