Why Risk Management Should be a Vital Part of your Information Security Policies
To consider themselves ‘cyber security ready’ need to meet a number of conditions including being able to detect attacks such as fraud, malware attacks, phishing, and theft of intellectual property from both within and outside the network. It is also vital for organisations to have an effective response protocol in place, so that if and when they come under attack, they know exactly what to do in order to reduce the effects of an attack.
Risk management is defined by Margaret Rouse from TechTarget as:
“The process of identifying, assessing and controlling threats to an organization’s capital and earnings. These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters.”
Risk management is a part of every organisation’s global or HR policy, however there is often a lack of focus on information security policies. Now more so than ever, digitized companies are at risk of cyber attack. As a result of this, risk management plans:
“Increasingly includes companies’ process for identifying and controlling threats to its digital assets, including proprietary corporate data, a customer’s personally identifiable information and intellectual property” says Rouse.
In terms of information security policies, risk management follows much the same process as for other aspects of the organization:
- Risk identification: identify what the potential risks may be that can negatively impact the organisation or particular projects
- Risk assessment and evaluation: the organization needs to identify whether that risk is worth taking on by looking closely at the chances of it happening and the consequences if it were to happen
- Risk mitigation: now organisations can determine their highest-ranked risks and create a plan to alleviate the risks by using specific – and organisation unique – risk controls, including risk prevention tactics and mitigation processes
- Risk monitoring: as well as monitoring for risks and investigating if there is reason to believe that the organisation is under threat, the risk management processes need to be monitored too and updated accordingly
- Risk analysis: once the organisation can identify the types of risk they are at risk of, they must determine the likelihood of them actually occurring and what the impact and consequences would be if they happened.