Risk Analysis is the
process of ensuring that the security
controls for a system are fully
aligned with its risks.
Business Issues
Security should be addressed
by both the business and IT
management teams. Business management
holds the responsible for decisions
relating to the security risk/level
that the enterprise is willing
to accept at a given time (which
involves consideration of potential
business impact). IT management
holds the responsible for decisions
relating to specific controls
and application.
By obtaining information from
different parts of business
units, a Risk Analysis aids
communication and facilitates
decision making. Risk Analysis
relates security directly to
business issues.
Security Awareness
A Risk Analysis will actively
involve a wide range of staff,
and will place security on the
agenda for discussion and increase
security awareness within the
enterprise.
Security should be properly
targeted, and directly related
to potential impacts, threats,
and existing vulnerabilities.
Failure to achieve this could
result in excessive or unnecessary
costs. Risk Analysis promotes
a far better understanding of
security issues and facilitates
related decisions.
This not only applies to which
areas of a particular system
resources should be directed
to, but which business systems.
By performing Risk Analysis
across multiple business units,
it is possible to quickly establish
the areas of greatest risk to
the enterprise as a whole.
"Problems aside, we are
rapidly approaching a situation
where risk management is no
longer an option. In a highly
competitive business environment,
companies cannot afford to have
costly or inappropriate security.
Effective risk management can
be nothing less than the defense
of company profitability."
- Dr P G Dory, former Head Of
Information Security, Barclays
Bank PLC
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