Which of the following should be done FIRST when developing an initial set of risk scenarios for an organization?

While industry standard scenarios can be a good reference, they should be considered after understanding the organization's unique context and business activities to ensure relevance.

A top-down approach is a methodology for risk identification, but both top-down and bottom-up approaches require an understanding of the underlying business activities to be effective.

To develop meaningful and relevant risk scenarios, a risk practitioner must first understand the core business activities and objectives of the organization. Risks exist in the context of business operations, so identifying what the organization does and how it creates value is foundational, allowing for the creation of scenarios that accurately reflect potential threats and vulnerabilities to specific processes, assets, and goals.

A bottom-up approach is a valid methodology but should still be grounded in the context of the business activities; understanding what the business *does* precedes analyzing individual components.