How to Identify Information Security Risks in ISO 27001:2022
What is an information security risk?
Information security risk is the potential for a threat to exploit vulnerabilities in an information asset thereby causing harm to the organization. Additionally, a risk would be potential for an information security event to impact the confidentiality, integrity and availability of information thereby affecting the organization’s objectives.
What the standard states about risk identification
Clause 6.1.1 of ISO 27001:2022, states that an organization shall determine risks and opportunities that need to be addressed to prevent or reduce undesired effects. This ensures that the organization can effectively plan for actions to address the identified risks and integrate these actions into the information security management system.
These risks should be derived from the internal and external issues that can affect the information security management system. Furthermore, organizations should identify risks cognizant of the needs and expectations of interested parties.
The process of risk identification
The Assets, Threats and Vulnerabilities (ATV) methodology is popular approach to identifying risks.
It involves systematically listing the organization’s assets, identifying potential threats and then uncovering any vulnerabilities that these threats could exploit.
Additionally, this approach ensures organizations identify the risks that are specific to its assets and not generic or industry-wide threats.
1. Identification of Assets
An asset is anything that has value to the organization and which, therefore, requires protection. Assets encompass hardware, software, information assets, people assets and intangible assets like brand reputation.
2. Identification of Threats
A threat is something that can exploit by a vulnerability in an asset. It is important to note that for a threat to materialize, there needs to be existence of a vulnerability. Examples of threats are:
- Physical Threats : Fire, Floods and natural disasters
- Human Threats : Theft and Insider threat
- Technical threats: Malware, Phishing
3. Identification of vulnerabilities
A weakness in an information system, security procedures, internal controls, or implementation that could be exploited by a threat to cause harm. Therefore, risk isn’t automatically caused by a vulnerability; a threat must also exist for the vulnerability to take advantage of it. Examples of vulnerabilities are:
- Physical Vulnerabilities : Lack of surveillance, Lack of secure entry systems
- Human Vulnerabilities : Weak passwords, Insufficient security awareness
- Software Vulnerabilities : Outdated software, weak encryption
4. Identification of Consequences
The consequences that losses of confidentiality, integrity and availability may have on the assets should be identified.
Using the information above a a comprehensive risk identification can be conducted. This is shown in the table below.
| ASSET | THREAT | VULNERABILITY | CONSEQUENCES |
|---|---|---|---|
Data Center | Power Outage | Lack of backup power generators | Loss of data, downtime, financial loss and damage to reputation. |
Employee Laptops | Theft | Inadequate physical security measures | Data exposure and operational inefficiency |
Financial records | Insider threat | Lack of segregation of duties | Financial fraud and loss of financial integrity |
From this table, a clearer definition of risk can be uncovered; a risk is potential harm (consequence) to an asset if a threat exploits a vulnerability. Here are the three risks that we can derive from the table:
- The risk that the data center loses electricity, potentially causing all systems to shut down or data to be lost.
- The risk that a thief steals laptops thereby compromising the data stored on them if not properly secured.
- The risk that someone within the organization (an insider) could misuse access to financial records for fraud or theft.
Conclusion
Risk identification is a cornerstone of risk management as it sets the stage for subsequent steps in this process. It demands pro-activeness to adapt to new threats, vulnerabilities and technological advancements that may disrupt the organization’s information security posture. Organizations should invest in thorough, accurate, and ongoing risk identification to safeguard their information assets, ensure business continuity, and maintain a competitive edge in an increasingly threat-laden digital landscape.