What does the FAIR model stand for in risk management?

The FAIR model stands for Factor Analysis of Information Risk. This model provides a structured framework for understanding, analyzing, and quantifying information security and operational risk. By focusing on factors that contribute to risk, such as threats, vulnerabilities, and potential impacts, the FAIR model enables organizations to assess risks in a more quantitative manner. This quantification helps decision-makers prioritize risks and allocate resources more effectively, which is essential in risk management.

The other options do not accurately represent the FAIR framework. For instance, the term "Factor Analysis of Internal Risk" misrepresents the focus on information risk specifically, while "Financial Analysis of Information Risk" suggests a narrow financial perspective, which is not the primary aim of the FAIR model. Meanwhile, "Functional Assessment of Information Resources" is unrelated to the risks and factors that the FAIR model addresses, emphasizing functions rather than a risk analysis framework. The correct designation as the Factor Analysis of Information Risk encapsulates the model's objective in the context of risk management.