In the first part of this series, we explored the foundational elements of the risk management lifecycle as outlined by ISO 27000 series of standards. We will now delve into the second phase: Risk Assessment. This critical step involves identifying, analysing, and evaluating risks to your organization’s information assets.
1. Identifying Assets:
The initial step in risk assessment is identifying the information assets that are vital to your organization. These assets could include customer data, intellectual property, financial records, or proprietary software. Let’s consider an example:
Example:
For a healthcare provider, patient records, medical databases, and research findings are crucial information assets. These assets are the lifeblood of the organization and must be protected to ensure patient privacy and comply with healthcare regulations such as HIPAA etc.
2. Identifying Threats:
Once your assets are identified, the next step is recognizing potential threats. Threats can be external (such as cyberattacks, natural disasters, or supply chain disruptions) or internal (such as employee errors or system failures).
Example:
In the context of a financial institution, external threats may include cyberattacks attempting to gain unauthorized access to customer financial data. Internal threats could involve unintentional data leaks due to employee negligence or system glitches.
3. Assessing Vulnerabilities:
After identifying threats, assess the vulnerabilities within your organization’s systems and processes that could be exploited by these threats. Vulnerabilities may include outdated software, insufficient access controls, or inadequate security protocols.
Example:
For a software development company, a vulnerability could be using outdated programming languages or tools that are no longer supported, making their systems susceptible to exploitation by attackers leveraging known vulnerabilities.
4. Calculating Risk:
Risk is calculated by evaluating the likelihood and impact of identified risks. Likelihood is the probability of a risk occurring, while impact assesses the potential harm or damage if the risk materializes. Combining these factors helps prioritize risks.
Example:
Considering the risk of a data breach in an e-commerce business, the likelihood may be assessed as moderate, but the impact could be significant due to potential financial losses, reputational damage, and legal consequences. This risk would be prioritized accordingly.
5. Evaluating Against Risk Criteria:
Referencing the risk criteria established in Part 1, organizations determine which risks fall within acceptable tolerances and which require treatment. These criteria guide decision-making throughout the risk assessment process.
Example:
Using the compliance criteria defined earlier, if the risk of non-compliance with financial regulations has a likelihood exceeding 5%, it falls outside the organization’s tolerance level and requires immediate attention and mitigation.
So, from the process and examples above, I have extracted the information below,
Conclusion:
A comprehensive risk assessment lays the groundwork for effective risk management, enabling organizations to make informed decisions about how to mitigate threats and vulnerabilities. By systematically progressing through these steps, organizations can conduct a thorough risk assessment aligned with ISO standards. The resulting risk profile provides a foundation for the next phase: Risk Treatment.
In Part 3 of this series, we’ll delve into the risk treatment process, exploring strategies for mitigating identified risks and providing practical examples of risk treatment plans. Stay tuned for actionable insights and guidance on securing your organization’s information assets.
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