Embracing Risk Management's Benefits
Risk management is a broad area within information security management. It consists of many steps ranging from risk identification and its assessment to the preparation and monitoring of mitigation measures. If it is to be meaningful, risk management needs to be addressed on a regular, or better still, continuous basis and to include risk identification and management in many different processes. It can be tedious and costly...Therefore, the benefits of risk management need to be understood and continuously communicated.
Kateřina is a Security Consultant focusing on information security management system, risk management and business continuity. In ensuring compliance with standards and laws, she has experience in conducting maturity assessments and setting corrective measures, especially in the area of ISO 27001 and the Czech Act on Cyber Security.
Why is it important? Can we just skip it? What practical benefits does it bring to your company? And when is the right time to perform it?
In reality, risk management is fundamental for security management. It provides a systematic and proactive approach to identifying, assessing, and mitigating potential threats and vulnerabilities to a company's assets and processes.
What positive outcome exactly brings risk management to our company’s security?
In summary, proper risk management:
- Saves money and time (allocating resources efficiently, preventing incidents, prioritising critical threats that are likely to happen)
- Provides a broad and clear overview of the state of the company's security
- Prevents incidents (no reputation damage and usually cheaper)
- Is required by laws and regulations
When to perform it?
Company-level risk assessment
First, we need to identify and assess all our primary assets. Here we can talk about the core services, processes, or information that the company needs to provide its core activities. Next, we look at the threats that can compromise the confidentiality, availability or integrity of these assets and assess the vulnerabilities that can enable the threats to be realised. Performing this analysis at the company level allows us to look at the risks strategically and really plan and manage the implementation of security measures in a systematic and cost-effective way. At the same time, it gives a powerful tool for conscious risk management by the company's management, which determines the risk appetite and accepts the risks according to the set appetite or plans further steps in information security. Such an analysis should be carried out at least once a year.
Significant change
A risk assessment evaluates the potential security risks and vulnerabilities associated with a significant change or transformation in a company, such as a system upgrade or structural reorganisation. By conducting such assessments, companies can proactively address security issues and implement necessary measures. This ensures that a significant change is implemented in a secure manner and minimises the possibility of security incidents and disruptions caused by the transformation.
New System or Technology Implementation
Deploying new software, hardware, or technology is kind of a special type of the significant change. Before the deployment, a security risk analysis should be conducted to identify potential vulnerabilities and threats associated with the new system.
Third-Party Vendor Selection
When considering outsourcing services or working with third-party vendors, a security risk analysis helps evaluate the security practices and potential risks associated with the vendor's systems and processes. The goal is to identify and mitigate any risks related to data breaches, supply chain disruptions, or regulatory compliance issues that may arise from the vendor relationship. This assessment helps companies make informed decisions about vendor selection, establish security requirements, and implement measures to safeguard their data and operations when collaborating with a new third-party vendor.
Elevated Threat or a New Threat
Companies conduct risk assessments in response to newly emerging or heightened threats by analysing the nature and scope of the threat, assessing existing vulnerabilities, and implementing targeted risk mitigation measures.
Incidents
Companies should conduct a thorough review of risk assessments following any accidents, incidents, or near misses, regardless of how recently the asset was reviewed. These investigations present an opportunity to pinpoint vulnerabilities and areas of weakness, enabling a re-evaluation of the task and the implementation of necessary safety improvements to address any gaps in your safety management system.
Project management
When starting a new project, it is crucial to identify, evaluate, and manage all security-related risks within the project through a systematic process. By addressing security risks early in the project lifecycle, companies can enhance the resilience and security posture of their projects, reducing the likelihood and impact of security breaches and disruptions.
A highly advanced approach to risk management is to aggregate and manage the risks identified in all these ways into one system.
When properly set up and managed, this allows an organisation to continuously improve its resilience.
Such an approach is now also mandatory for financial institutions that fall under the scope of DORA and should ensure greater resilience of the financial sector within the European Union.
Want to maximise your security with professional risk management?
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