Situational awareness is the art of listening, observing, understanding and considering the dynamics of any situation. In cyber security terms this means having an understanding of your environment and predicting and responding to potential problems that might occur.
Cyber threats whether targeted or un-targeted are primarily external and seek to achieve some form of advantage and gain by overcoming the security you have placed around your network. A threat becomes a managed risk when the likelihood and impact is understood. Having a good understanding of the known threats to your business is key to managing risk.