IT Risk Assessment

Aligning security risk with business objectives

The knowledge gained through an IT risk assessment helps guide an organization in making rational decisions to improve security posture and aligning risk with acceptable tolerance levels.

Understanding Security Risk

  • Asset = valued resource
  • Vulnerability = exploitable weakness
  • Threat = attacker of vulnerability

Risk = Asset x Vulnerability x Threat

Roles & Responsibilities

  • Asset = IT Manager – Understand and present security risks
  • Vulnerability = CIO – Quantify risks
  • Threat = Executive Suite – Determine organization’s acceptable risk level and manage resources accordingly

EFFECTIVE SECURITY
RISK MANAGEMENT

By understanding information security risk and the impact it may have on an organization, Cyber Knight’s security consultants set the foundation for a formalized IT risk management program. Risk management is the ongoing process of identifying, assessing, and responding to risk. As the first step in the security cycle of risk management, a risk assessment provides insight into the effectiveness of a security program and acts as a baseline for subsequent policy and control decisions.

Reason for IT Risk Assessment
Risk assessments assist organizations in making educated security decisions. Understanding one’s risk will help prevent arbitrary action. The entire process is designed to help IT departments find and evaluate risk while aligning with business objectives.

  • Identify asset vulnerabilities
  • Gather threat and vulnerability information
  • Identify internal and external threats
  • Identify potential business impacts and likelihoods
  • Determine risk
  • Identify and prioritize risk responses

Beyond baselining an organization’s security posture, information security risk assessments are also the first requirement outlined in federal regulations such as Sarbanes-Oxley Act (SOX), Privacy Ordinance, China Cyber Law based assessments, HKMA cyber security requirement based review and APAC local country based regulation review.

The Payment Card Industry – Data Security Standardsalso require merchants of all sizes to perform due diligence in assessing risk in their technology operations.

Understanding The Process 

STEP 1: PREPARE FOR IT RISK ASSESSMENT
In order to perform an effective risk assessment we must first identify the purpose of the risk assessment in terms of the information that the assessment is intended to produce and the decisions it is intended to support.


STEP 2: CONDUCT THE IT RISK ASSESSMENT
The second step in the risk assessment process is to conduct the assessment. The objective of this step is to produce a list of information security risks that can be prioritized by risk level and used to inform risk response decisions. To accomplish this objective, organisations analyse threats and vulnerabilities, impacts and likelihood, and the uncertainty associated with the risk assessment processIdentify Threat Sources
Identify and characterize threat sources of concern, including capability, intent, and targeting characteristics for adversarial threats and range of effects for non-adversarial threats.

Identify Threat Events
Identify potential threat events, relevance of the events, and the threat sources that could initiate the events.

Identify Vulnerabilities and Predisposing Conditions
Identify vulnerabilities and predisposing conditions that affect the likelihood that the threat events of concern result in adverse impacts.

Determine Likelihood
Determine the likelihood that threat events of concern result in adverse impacts, considering: (i) the characteristics of the threat sources that could initiate the events; (ii) the vulnerabilities/predisposing conditions identified; and (iii) the organizational susceptibility reflecting the safeguards/countermeasures planned or implemented to impede such events.

Determine Impact
Determine the adverse impacts from threat events of concern considering: (i) the characteristics of the threat sources that could initiate the events; (ii) the vulnerabilities/predisposing conditions identified; and (iii) the susceptibility reflecting the safeguards/countermeasures planned or implemented to impede such events.

Determine Risk
Determine the risk to the organization from threat events of concern considering: (i) the impact that would result from the events; and (ii) the likelihood of the events occurring.


STEP 3: COMMUNICATING AND SHARING IT RISK ASSESSMENT INFORMATION
The third step in the risk assessment process is to communicate the assessment results and share risk-related information. The objective of this step is to ensure that decision makers across the organization have the appropriate risk-related information needed to inform and guide risk decisions.


STEP 4: MAINTAINING THE IT RISK ASSESSMENT
The fourth step in the risk assessment process is to maintain the assessment. The results of risk assessments help make informed risk management decisions and guide risk responses.

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