Domain 5:Explain elements of the risk management process Flashcards
Threat
A threat is someone or something that wants to inflict loss on a company by exploiting vulnerabilities. In the preceding example, it’s the person who takes the gold. In IT security, it could be a hacker that wants to steal a company’s data.
Risk
The risk is the probability that an event will occur that results in financial loss or loss of service. In the preceding example, the probability that the trash or gold would be taken. In IT security, it is the probability your system could be hacked or data stolen.
Vulnerability
This is a weakness that helps an attacker exploit a system. In the preceding example, it is the fact that outside your front door is not a secured area. In IT security, it could be a weakness in a software package or a misconfiguration of a firewall.
Ad hoc risk assessment:
Ad hoc assessments are sporadic and arise in response to specific events or perceived threats. This type of assessment is tailored to focus on the immediate dangers and is characterized by its flexibility and swift implementation.
Risk assesment
Risk assessment is a systematic and structured process where the organization identifies, analyzes, and evaluates risks associated with potential threats and vulnerabilities in order to make informed decisions and prioritize resource allocation effectively
Recurring Assesments
Recurring assessments are routine and scheduled to occur at predetermined intervals. This approach ensures that the organization’s security posture is regularly monitored, evolving threats are detected, and changes in the environment or operations are addressed. Regularly scheduled assessments enable organizations to stay vigilant and maintain an updated understanding of their risk profile, fostering a proactive security culture.
One-Time assessments
One-time assessments are conducted for specific scenarios or projects, often at the inception of a new venture, system implementation, or organizational change. This approach provides a detailed one-time view of the risks associated with a particular endeavor
Continuous risk assessment
Continuous risk assessment goes above and beyond the periodic nature of recurring assessments, characterized by real-time monitoring and the analysis of risks. This dynamic approach integrates risk assessment seamlessly into the organization’s daily operations, allowing for instantaneous detection and response to threats as they arise. Continuous assessment is vital in today’s fast-paced and dynamic threat landscape as it empowers organizations to stay a step ahead of potential security breaches
Risk analysis
Risk analysis is a pivotal process for identifying and managing potential risks that could impact an organization adversely.
Qualitative Analysis
Qualitative risk analysis uses subjective judgment to categorize risks as high, medium, or low, focusing on the potential impact, such as the likelihood of occurrence
Quantitative risk analysis,
Quantitative risk analysis, on the other hand, assigns numerical values to risks identified as high in qualitative analysis. It quantifies and creates a precise measurement of the probability and the impact of risks, helping to determine the potential cost and formulate data-driven mitigation strategies
Single Loss Expectancy (SLE):
SLE represents the monetary value of the loss of a single item. Losing a laptop worth $1,000 while traveling, for instance, implies an SLE of $1,000.
Annualized Rate of Occurrence (ARO)
ARO refers to the number of items lost annually. For example, if an IT team experiences the loss of six laptops in a year, the ARO is 6.
Annualized Loss Expectancy (ALE):
This is calculated by taking the SLE and multiplying it by the ARO and represents the total expected loss per year, providing a foundation for insurance and risk management decisions.
Probability
Probability is a fundamental concept in risk analysis that describes the chance of a specific event occurring. It is quantified as a number between 0 and 10; the closer the number is to 10, the higher the probability that the event will occur.
Likelihood
: Likelihood is synonymous with probability in risk analysis, representing the possibility of a risk materializing. It is often expressed in qualitative terms, such as high, medium, or low, providing an intuitive grasp of the risk’s occurrence.
Exposure Factor
): EF is a measure of the magnitude of loss or damage that can be expected if a risk event occurs. It is represented as a percentage, reflecting the portion of an asset’s value likely to be affected. By determining the EF, organizations can assess the extent of damage a specific risk can inflict to produce more accurate risk valuations.