Lesson 7-Managing Risk

Overview Defining risk. Identifying the risk to an organization. Measuring risk.

Defining Risk Risk is the potential for loss that requires protection. Risk management provides a basis for valuing an organization’s information assets. Risk is the measure of vulnerabilities and threats.

Defining Risk Vulnerability Threats

Vulnerability Vulnerabilities make computer systems and networks prone to technical, non-technical, or social engineering attacks. It is characterized by the difficulty and the level of technical skill that is required to exploit it. The result of such exploitation must also be considered.

Vulnerability The relationship between vulnerability and threat

Threat A threat is an action or event that violates the security of an information system environment. It can have multiple targets. The components of threat are targets, agents, and events.

Targets The targets of threat or attack are security services such as: Confidentiality - Disclosure of classified information to unauthorized individuals. Integrity - Tampering of information. Availability - Denial-of-service attack. Accountability - Prevents organization from reconstructing past events.

Agents The characteristics of agents who are the people who may wish to harm the organization are: Access - An agent must have direct or indirect access to system, network, facility, or information. Knowledge - An agent must have some knowledge about the target. More familiar an agent is with the target, more likely the agent will know about the vulnerabilities.

Agents The characteristics of agents who are the people who may wish to harm the organization are (continued): Motivation - An agent may tamper with information as a challenge, greed to gain something, or purely with a malicious intent.

Agents A threat occurs when an agent with access and knowledge gains motivation to take action. Such agents could be: Employees having necessary access and knowledge to systems. Ex-employees having any grudges. Hackers, terrorists, and criminals with a malicious intent to harm the organization. Commercial rivals who are interested in classified business information of the organization.

Events Events are the ways in which an agent of threat may cause harm to an organization. It is the extent of harm that could possibly be done if the agent gained access.

Risk Risk is the combination of threat and vulnerability. Risks can be categorized as low, medium, or high-risk.

Identifying the Risk to an Organization Components of an organizational risk assessment

Identifying the Risk to an Organization Identifying vulnerabilities. Identifying real threats. Examining countermeasures. Identifying risk.

Identifying Vulnerabilities To identify specific vulnerabilities: Locate all the entry points (electronic and physical) to the organization. Identify system configurations. Identify which information and systems are accessible. Include any known vulnerabilities in operating systems and applications.

Identifying Real Threats Real or targeted threats may not show themselves until an event has occurred. All targeted threats are time-consuming and difficult.

Examining Countermeasures Countermeasures for each access point within an organization must be identified. Some of the countermeasures include firewalls, anti-virus software, access control mechanisms, and biometrics.

Identifying Risk Identify specific risks to the organization. Identify what possible harm can be done through each access point. Rate each risk as high risk, medium risk, or low risk. The same vulnerability may pose different levels of risk based on the access point.

Measuring Risk Measuring risk

Measuring Risk Risks can be measured in terms of: Money. Time. Resources. Reputation and lost business.

Money The cost for managing risks include: Lost productivity. Stolen equipment or money. Cost of an investigation. Cost to repair or replace systems. Cost of experts to assist. Employee overtime.

Time The amount of time taken to manage risks may include: The time a technical staff member is unavailable to perform normal tasks due to a security event. The downtime of a key system. Delay in product delivery or service.

Resources Includes people, systems, communication lines, applications, or access as resources. Computes the monetary cost of using a resource to troubleshoot.

Reputation and Lost Business Data compromise can affect the organization’s reputation. Future business is in jeopardy as people lose faith in the brand name. Losses due to system failures and production delay cannot be ruled out.

Measuring Risk To measure risk: Identify the extent of risk – best case, worst case, or most likely case. Identify the damage in terms of money, time, resources, reputation, and lost business. Identify the cost of restoration. Examine the potential results in each risk measurement area. Develop appropriate risk management approaches.

Summary Security is managing risk. To identify risks, identify vulnerabilities, and threats. Examine countermeasures for each risk. Identify the extent of risk. Measure risk in terms of money, time, resources, reputation, and lost business.