1. Introduction
The information resources protection has become more complex and challenging for organizations in a rapidly changing security threat setting. The adoption of cloud computing technologies by organizations, and the extensive use of internet services by customers for daily activities like bill payments, communication, banking, etc. are few examples illustrating the shifting technological scene in organizations. The shift towards these new technologies presents new risks to an organization’s information assets. Although, Information security standards like ISO27000 series suggests a diverse set of technical and process controls to protect an organization’s information assets, the standards acknowledges that the organization’s selection
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According to NIST (2011), Risk Management in is a comprehensive process involving four important components which are frame risks, assess risks, respond to identified risks and monitoring of risks. These four components ensure that risk management program is holistic, addressing risk ranging from strategic to tactical level, and also ensures integration of risk based decision making into all facets of an organization.
2.1 Frame Risks
Framing risks is the process of establishing a risk context that would help describe the environment that aids risk based decision making. Framing risks would help an organization develop a risk management strategy that holistically covers the approach it intends follow to assess and respond to threats. To establish a reliable and realistic risk frame, organizations needs identify the following
• Risk Assumption - Assumptions made about threats and vulnerabilities, and various other factors like consequence, likelihood of
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• Determine the risk response effectiveness post implementation.
• Identify how risk impacts changes the organization’s information system and landscape in which the systems operate.
• Risk monitoring also requires organizations to describe how it plans to verify its compliance with various laws and regulations.
3. Importance for Risk Management to Business Leaders
Business Leaders and managers are tasked with the responsibility of ensuring due diligence is performed while making decisions for the organization. Having a formal risk management program as part of the organization’s information security program provides the leaders a proper process and diligence before making important information security related decisions. The risk analysis helps managers to decide whether to go ahead with a new security program or not, while the risk assessment would help determine if the types of controls to be that needs to be implemented (Peltier, 2010). The risk assessment also helps identify the countermeasures to mitigate the risks, or help decide if it’s best to accept the risk rather than mitigate
Security helps the organization meet its business objectives or mission by protecting its physical and financial resources, reputation, legal position, employees, and other tangible and intangible assets through the selection and application of appropriate safeguards. Businesses should establish roles and responsibilities of all personnel and staff members. However, a Chief Information Officer should be appointed to direct an organization’s day to day management of information assets. Supporting roles are performed by the service providers and include systems operations, whose personnel design and operate the computer systems. Each team member must be held accountable in ensuring all of the rules and policies are being followed, as well as, understanding their roles, responsibilities and functions. Organizations information processing systems are vulnerable to many threats that can inflict various types of damage that can result in significant losses (Harris, 2014). Losses can come from actions from trusted employees that defraud the system, outside hackers, or from careless data entry. The major threat to information protection is error and omissions that data entry personnel, users, system operators and programmers make. To better protect business information resources, organizations should conduct a risk analysis to see what
1). There are several different methods available to project and program managers for identifying and dealing with project risks; however, for this scenario the following two methods were used: the risk assessment form and the risk response matrix. The risk assessment form allows project managers to identify risks associated with a project, determine the likelihood of the risk happening, the impact of the risk to the project, how difficult the risk can be to detect, and finally, identify what stage of the project the risk will likely happen. The risk response matrix allows project managers to identity risk associated with a project and determine how to handle the risk by either “mitigating, avoiding, transferring, sharing, or retaining” (Larson & Gray, 2014, p.
Risks- how the organization will cope with the uncertain risks with their management approach and plan.
The intensity and depth of an organization's security policy depends heavily on the nature of their business. A large company compared to a small company would require a different approach to their security policy. Also, the type of information that the company dea...
In fact, there are numerous reasons that make risk management a necessity in order to meet homeland security’s goals. For one, risk management facilitates well-structured priority level planning in order to achieve a more structured process, which aims to become more standard across the board for all functions and activities within homeland security. Second, risk management develops specific performance calculations and measurements by using formulas and other variables to present a plethora of data collected for planning and decision making purposes. Lastly, risk management aims to achieve cohesively developed goals and objectives within its enterprise by the use of integrated
Risk management is defined by the Department of Homeland Security (DHS) as “the process of identifying, analyzing, assessing, and communicating risk and accepting, avoiding, transferring or controlling it to an acceptable level considering associated costs and benefits of any actions taken” (DHS 2010a, p. 30). Raymond Decker, Director of Defense Capabilities and Management testified on behalf of the U.S. Government Accountability Office (GAO) before the Subcommittee on National Security, Veteran’s Affairs, and International Relations; House Committee of Government Reform, and further described risk management as the “systematic and analytical process to consider the likelihood that a threat will endanger an asset,
To manage risk management there have some step that should be followed. First, identify the risk, whether the risk will occur from production , marketing or legal risk. Second, measure the risk, which is the probability of outcome that will occur. Third, assess the risk that be bearing, scan the strategies that will be taken it suitable or not with the person who bear it. Fourth, evaluate the risk by tolerance or preferences, whether to face or avoid the risk based on the revenue in future. Fifth, set the risk management goal, what the outcome that will arise and analysis of objective to be a reality. Sixth, identify the effective tools, difference risk, differ to...
Organizations may also choose to expend a greater level of effort on certain RMF tasks and commit fewer resources to other tasks based on the level of maturity of selected processes and activities within the organization. Since the RMF is life cycle-based, there will be a need to revisit various tasks over time depending on how the organization manages changes to the information systems and the environments in which those systems operate. Managing information security-related risks for an information system is viewed as part of a larger organization-wide risk management activity carried out by senior
Risk management is a process used in all industries to reduce the risk. The Risk management tool usage changes from sector to sector and hence each sector has developed their own risk management tools and methodologies to mitigate the risk. But the concept remains the same behind all the tools (Ropel, 2011). The main steps for risk management irrespective of the sector are:
Risk mitigation is also the process of controlling actions, which are identified, and selecting the suitable ones to reduce risk according to project objectives (Pa, 2015). Risk mitigation is important in IT organizations in so many ways. According to Ahdieh, Hashemitaba, Ow (2012), mitigation of risk provides a mechanism for managers to handle risk effectively by providing the step wise execution of the risk handling (as cited in Pa, 2015, pg. 49). Some risks, once identified, can readily be eliminated or reduced. However, most risks are much more difficult to mitigate, particularly high-impact, low-probability risks. Therefore, risk mitigation and control need to be long-term efforts by IT project managers throughout the project lifecycle. There are three types of risk mitigation strategies that hold unique to Business Continuity and Disaster
It affects or is created by business strategy decisions. It´s critical to the growth and performance of certain firm. These risks may be triggered from inside or outside of the organisation. Once they are understood, the firm can develop effective, integrated, strategic risk mitigation.
Risk is an identified uncertainty related to any act or decision. Risk is the focal topic in the management of any activity, let it be technology, construction, health management or event management. These risks can comprise of threats and opportunities. Threats are risks with negative consequences and opportunities are risks with positive benefits.
Over the past decade, risk and uncertainty have increasingly become major issues which impact business activities. Many organizations are raising awareness to minimize the adverse consequences by implementing the process of Risk Management Framework which plays a significant role in mitigating almost all categories of risks. According to Ward (2005), the objective of risk management is to enhance a company’s performance. In particular, the importance of the framework is to assist top management in developing a sensible risk management strategy and program.
The importance of enterprise risk management is to ensure that the program is not managed in individual departments, but rather utilizing a holistic approach. According to Fraser & Simkins, in the text, Enterprise Risk Management, the common result of a stove-pipe approach to risk management is that risks are often managed inconsistently these risk may be effectively managed within an individual business unit to acceptable levels, but the risk treatments or lack thereof selected by the manager may unknowingly create or add to risks for other units within the organization. This stove-piping or silos as we understand it at University of Saint Mary create major rifts and
The risk management process needs to be flexible. Given that, we operate in the challenging environment, the companies require the meaning for managing risk as well as continuous improvement in identifying new risks that will evolve and make allowances for those risks that are no longer existing.