How can you develop and implement an IT governance and information security risk assessment process?
IT governance and information security are essential for any organization that relies on information systems to achieve its objectives. IT governance ensures that IT resources are aligned with the business strategy, deliver value, and manage risks. Information security protects the confidentiality, integrity, and availability of information assets from threats and vulnerabilities. To develop and implement an effective IT governance and information security risk assessment process, you need to follow these steps:
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Dr. Durgesh PandeyChartered Accountant || Professor, Speaker, Trainer & Researcher || Specialisation in the areas of Forensic Accounting…
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Nanthagopal.K- MCACISM | PMP | ITIL ITSM | PCNSE | RPA | AI | Cyber Security Exposure Management Expert Certified | AI Governance…
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Harsh ShahSenior Manager-Cyber Services CISM| ISO 27001 | ISO 20000 | ISO 22301 |ISO 9001 | ISO 27017 | ISO 27018 | PCIDSS |
The first step is to define the scope and objectives of the risk assessment process. You need to identify the key stakeholders, such as senior management, IT staff, business users, and external auditors, and their roles and responsibilities. You also need to determine the scope of the IT environment, such as the systems, networks, applications, and data that are in scope. Moreover, you need to define the objectives of the risk assessment process, such as the compliance requirements, the risk appetite, and the expected outcomes.
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The executive overview for defining the risk appetite and the controls that are essential is the key. While the governance mechanism is meant for the stakeholder visibility and assurance, often the ability of the supporting hands gets constrained by the non-prioritisation of the essentials control mechanism in the organisational ecosystem. Policies and governance as a documented intent is practically of very less value until the deployment review is carried out and the gaps are reported to the stakeholders and the governance council. Scope and Objectives have little to do with the governance of Risk assessment until the intent reflects its footprint in the reports indicating the stakeholder interest in the Risk Management nuances !!
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Clearly outlining the objectives of the IT governance and information security risk assessment process is essential to provide a strategic direction for the initiative. It helps set specific goals such as identifying vulnerabilities, ensuring compliance, and safeguarding sensitive information. Simultaneously, defining the scope establishes the boundaries for assessment, encompassing critical elements like systems, applications, and data. This delineation ensures a comprehensive evaluation, allowing for targeted risk management measures and a focused approach to bolstering overall cybersecurity.
The second step is to establish the risk framework and methodology that will guide the risk assessment process. You need to adopt a standard or best practice framework, such as COBIT, ISO 27001, or NIST, that provides a comprehensive and consistent approach to IT governance and information security. You also need to choose a suitable risk methodology, such as qualitative or quantitative, that defines the risk criteria, the risk identification, the risk analysis, the risk evaluation, and the risk treatment.
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In my view the frameworks provide excellent templates to map the Risk Universe. Starting with the framework organises the thoughts and ideas. There is also a myth that the frameworks are very technical, instead frameworks are by and large strategic in nature specifically for usage of senior management in IT GRC. Once the framework is selected, the identification, analysis and mitigation becomes organised.
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Selecting a suitable framework such as ISO 27001, NIST Cybersecurity Framework, or COBIT is foundational for effective IT governance and security. Ensure alignment with organizational objectives and customize the framework to address specific needs, considering industry regulations and business operations. Integration with existing processes and collaboration with stakeholders are vital for seamless implementation. Document customizations, conduct training programs, and establish continuous review mechanisms to adapt the framework to evolving threats and organizational changes, fostering a tailored and effective approach to IT governance and information security.
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Risk framework includes the coverage of various dimensions of vulnerability that the organisational assets might get exposed. While identification of the most vulnerable assets is in itself a big threat on coverage, the grouping and segregation of assets into organisational, physical, network, process, product, internal and external would help in determining and measuring the vulnerability and scope of work that is required for a fair level of maturity and security that suits and maps to the organisational line of business, activities and operations!!
The third step is to perform the risk assessment according to the framework and methodology. You need to identify the IT assets, the threats and vulnerabilities that affect them, and the existing controls that mitigate them. You also need to analyze the likelihood and impact of each risk scenario, and evaluate the risk level and priority. Furthermore, you need to propose the risk treatment options, such as avoiding, transferring, reducing, or accepting the risk, and estimate the cost and benefit of each option.
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In a dynamic and ever changing business ecosystem the organisation should sense vulnerability at every turn and tide. Thus risk assessment is a frequent introspection that the organisation might want to have for a reassurance that its assets are safe and the business vulnerability is a”Thank God It Is Safe until now “, status . Periodic risk assessment and frequent updating of the risk criteria is an absolute essential for a proactive and preemptive preparedness for an info-security vulnerability of an organisation.
The fourth step is to report and communicate the risk results to the relevant stakeholders. You need to prepare a risk report that summarizes the key findings, the risk profile, the risk treatment plan, and the recommendations. You also need to communicate the risk results to the senior management, the IT staff, the business users, and the external auditors, and solicit their feedback and approval. Additionally, you need to document the risk assessment process, the assumptions, the limitations, and the lessons learned.
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Communication is the crux in any assessment not just Risk Assessment. As the nature of GRC is so pervasive, it affects almost all stakeholders in the company. Further Reports are very essential. Doing an excellent assessment and not producing report or ill conceived report makes the entire exercise futile. Hence Report should be prepared and that too in time or else the findings may become stale and not relevant.
The fifth step is to implement and monitor the risk treatment plan that has been approved by the stakeholders. You need to assign the roles and responsibilities for the risk treatment actions, such as implementing new controls, enhancing existing controls, or updating policies and procedures. You also need to establish the timelines and budgets for the risk treatment actions, and track their progress and performance. Moreover, you need to monitor the risk environment, the risk indicators, and the risk incidents, and report any changes or issues.
The sixth step is to review and improve the risk assessment process on a regular basis. You need to evaluate the effectiveness and efficiency of the risk assessment process, and identify the strengths and weaknesses. You also need to collect the feedback and suggestions from the stakeholders, and analyze the best practices and benchmarks. Furthermore, you need to update the risk framework and methodology, the risk criteria, the risk scenarios, and the risk treatment options, and align them with the changing business and IT needs.
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To be honest, below approach help concern to establish an effective framework for managing IT governance & information security risks. 1. Define Objectives & Scope 2. Establish a Governance Structure 3. Understand the Business Environment 4. Regulatory Compliance 5. Risk Identification 6. Risk Assessment 7. Risk Treatment & Mitigation 8. Monitoring & Review 9. Documentation & Reporting 10. Training & Awareness 12. Continuous Improvement 13. Technology Solutions 14. External Assessments 15. Communication 16. Legal & Ethical Considerations 17. Integration with Business Processes 18. Review & Adapt Risk assessment process is not a one-time activity & It requires Regular reviews, updates, and improvements are essential for maintaining InfoSec
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