Security Risk Management Guide
Table of Contents
Introduction to Security Risk Management
Security Risk Management is a systematic approach to identifying, assessing, and managing security risks to an organization's information assets and operations.
Key Components:
- Risk Identification
- Risk Analysis
- Risk Evaluation
- Risk Treatment
- Risk Monitoring
Risk Management Framework
Common Frameworks
| Framework |
Focus Area |
Key Features |
| ISO 27001 |
Information Security |
ISMS implementation |
| NIST RMF |
Federal Systems |
Security controls |
| COBIT |
IT Governance |
Risk assessment |
| FAIR |
Quantitative Analysis |
Risk quantification |
Risk Management Process
Process Steps
1. Establish Context
- Organization objectives
- Risk criteria
- Scope and boundaries
2. Risk Assessment
- Identification
- Analysis
- Evaluation
3. Risk Treatment
- Select options
- Implement controls
- Validate effectiveness
4. Monitor and Review
- Continuous monitoring
- Periodic review
- Process improvement
Risk Assessment
Risk Analysis Methods
Analysis Types:
- Qualitative Analysis
- Quantitative Analysis
- Semi-quantitative Analysis
Risk Calculation
Risk = Likelihood × Impact
Likelihood Factors:
- Threat capability
- Vulnerability exposure
- Control effectiveness
Impact Factors:
- Financial loss
- Operational disruption
- Reputational damage
- Regulatory compliance
Risk Treatment
Treatment Options
| Option |
Description |
When to Use |
| Risk Mitigation |
Implement controls |
High risk, manageable |
| Risk Transfer |
Insurance/outsourcing |
High risk, external options |
| Risk Acceptance |
Accept consequences |
Low risk, cost-effective |
| Risk Avoidance |
Eliminate risk source |
High risk, viable alternative |
Control Implementation
Implementation Considerations:
- Cost-benefit analysis
- Resource availability
- Technical feasibility
- Operational impact
- Compliance requirements
Monitoring and Review
Monitoring Activities
- Control effectiveness monitoring
- Risk level tracking
- Incident monitoring
- Compliance monitoring
- Performance metrics
Key Performance Indicators (KPIs)
Security KPIs:
- Number of security incidents
- Time to detect/respond
- Control effectiveness
- Risk reduction rate
- Compliance score
Risk Governance
Governance Structure
- Board oversight
- Risk committee
- Security team
- Business units
- Audit function
Documentation Requirements
Required Documents:
- Risk management policy
- Risk assessment reports
- Treatment plans
- Control documentation
- Incident reports
- Audit records
Best Practices
1. Regular Risk Reviews
- Quarterly assessments
- Annual deep reviews
- Event-driven updates
2. Stakeholder Communication
- Regular reporting
- Incident notification
- Status updates
3. Continuous Improvement
- Process refinement
- Control enhancement
- Framework updates
Critical Success Factors:
- Management commitment
- Resource allocation
- Clear responsibilities
- Regular training
- Effective communication