Threats, Risks, and Co

For those more visual, here is what it looks like:

Here is a story to help illustrate this.

To manage your risks, you need a good understanding of the elements presented above for your organisation:

1. Risk: A risk is a potential event that could cause harm to an organisation’s assets.

2. Valuable Assets: Valuable assets are the resources that an organisation wants to protect from harm. These include physical assets like buildings and equipment and intangible assets like data and intellectual property.

3. Adverse Impact: Adverse Impact is the outcome that could happen if a risk were to eventuate. For example, this could be data being lost or stolen or a server being encrypted.

4. Controls: Controls are the measures to protect valuable assets from harm. These can include policies, procedures, and technical safeguards.

5. Vulnerability: A vulnerability is a weakness in an organisation’s security controls that a threat actor could exploit to cause harm: An unpatched service, a misconfigured firewall, a weak process, or a human error, for example.

6. Threat Sources: Threat sources are the actors that pose a risk to an organisation’s valuable assets. These can include hackers, cybercriminals, and even employees.

7. Threat Event: A threat event is an incident where a threat actor attempts to exploit a vulnerability in an organisation’s security controls.

A risk is usually measured by estimating its impact and its probability of occurring.

The higher the impact or the likelihood, the higher the risk.

The likelihood and impact will depend on many factors:

• The motivation, means and skill of the threat source (attacker)

• The value of the assets for the attacker

• The vulnerabilities present in the system or process

• The effectiveness of the controls and preventing a threat event or limiting the impact.

The risk score comes from a risk matrix determined by the company. This matrix has many variants, with the number of levels varying (typically 3 to 5), and the risk score can also be different. Here is an example I used.

Here is another example of a risk matrix for an organisation with a higher risk appetite.

Risk scoring is more of an art than a science. It doesn’t have to be extremely precise. But it forces you to consider the different risks your organisation faces, understand and asses these controls, and prioritise the improvement work. And that is what 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Key Takeaway

• The higher the impact or the likelihood, the higher the risk.

• Risk scoring is more of an art that a science.

• It is key to help you prioritise your resources to address risk efficiently, by targeting the top ones first.

Next steps

• Assess your risk. What are the top risks for your organisation? Which ones are related to information security? Privacy? Cyber security?

• Assign ownership. Are these risks assigned to the right people? Is it even clear to these people they are risk owners? Assign accountability to individuals and responsibility to teams to manage these risks.

• Get a plan and keep on top of it. Do you have a clear plan to manage these risks? Ask the owners (people you made accountable) to report on the plans and progress. Ask for evidence.

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