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Threat, Vulnerability, and Exploits Assessment Practices

There are multiple ways to bring threats and vulnerabilities to light. Common practices and lessons learned can help us explore for known or common threats, but how does an organization with a unique or highly unusual setup discover its vulnerabilities? Many organizations turn to ethical hackers.
Write a four to five (4-5) page paper in which you:

Describe common tools and techniques for identifying and analyzing threats and vulnerabilities.
Critique the practice of offering rewards for discovering vulnerabilities.
Explain the risks of challenging individuals to exploit vulnerabilities in your systems.
Give your opinion on the formation of ethical hackers.