Risk assessments prioritize security investments based on business impact.
Risk formula
Risk = Likelihood × Impact
Assessment steps
- Identify assets: Systems, data, processes.
- Identify threats: Ransomware, insider threats, natural disasters.
- Identify vulnerabilities: Unpatched software, weak controls.
- Analyze likelihood: Probability of exploitation.
- Analyze impact: Business consequences if realized.
- Calculate risk: Combine likelihood and impact.
- Prioritize: Focus on high-risk scenarios.
Risk treatment options
- Avoid: Eliminate the activity.
- Mitigate: Implement controls to reduce risk.
- Transfer: Insurance or outsourcing.
- Accept: Acknowledge and monitor.
Frameworks
- NIST RMF (Risk Management Framework).
- ISO 27005 (Information Security Risk Management).
- FAIR (Factor Analysis of Information Risk).
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