Interscale Content Hub – With confidential project blueprints, sensitive client info and critical operational data at stake, we’re seeing businesses start to think about IT audit risk assessment.
IT audit risk assessment is key for spotting the potential risks linked to information technology systems and processes.
It doesn’t matter if you’re an IT manager, project lead, or executive stakeholder, finance person, or whatever – it’s time to get up to speed on IT audit.
What is an IT Audit Risk Assessment?
An IT audit risk assessment is basically a way of identifying, evaluating and prioritising risks related to an organisation’s information technology systems and processes.
This assessment is all about spotting potential weaknesses that could put the security, privacy and accessibility of IT assets at risk.
This helps organisations put controls in place to deal with these risks effectively.
The assessment also looks at how bad a breach could be, taking into account things like how sensitive the data is and how it could affect business operations.
The results of this assessment help organisations decide where to focus their resources to tackle the biggest threats and put effective risk management plans in place.
The ISACA and Protiviti 2022 IT Audit Technology Risks Survey shows a growing awareness of cybersecurity, privacy, and regulatory compliance issues, particularly in the technology, media, and telecommunications (TMT) sector.
The survey showed that a whopping 68% of IT audit leaders now include technology risk assessment in their overall internal audit risk assessment process.
This shows that IT risks are not just a standalone issue, but are actually part of a bigger picture when it comes to enterprise risks.
The survey also showed that 34% of organisations do an annual IT risk assessment, while 27% are more proactive with continuous or more frequent assessments.
For an overview of the fundamentals, please refer to “Why is it Important to Have a Risk Assessment? 4 Things To Be Noted“
What is the Difference Between IT Risk and IT Audit?
IT risk is about the potential negative effects that could come from threats and weaknesses in an organisation’s IT setup.
These could include things like data breaches, system outages, financial losses and reputational damage.
The “Risk Management Guide for Information Technology Systems” from the National Institute of Standards and Technology (NIST) says that IT risk is “the net negative impact of a vulnerability, considering both the probability and the impact of occurrence.”
On the other hand, an IT audit is a way of checking whether an organisation’s IT controls, processes and infrastructure are doing a good job of managing IT risks.
The audit gives an unbiased view of how well the company manages IT risks and makes suggestions for improvement.
As the ANAO’s 2023 “Cyber Security” report shows, an IT audit is basically an independent look at an organisation’s IT environment.
It assesses how well the controls are working, identifies potential risks, and makes suggestions for improvement.
So, when it comes to IT audits, the risk assessment is all about spotting and assessing the risks you find during the audit process.
This is especially important in industries like technology, media, and telecommunications (TMT), where cybersecurity, privacy, and regulatory compliance are big concerns.
Best Practices for IT Audit Risk Assessments
The key to a successful IT audit risk assessment is to have a clear and methodical approach.
That’s why the first thing you need to do, as the NIST says, is work out what you’re looking at.
This means you need to decide what you’re looking at, which systems, processes and data you’re going to check.
If you set clear parameters, you can ensure the whole assessment stays focused and manageable, not overwhelming.
Next, the most important thing is to get a qualified team on board. The way IT environments are these days means you need a team with different skills.
The team should include people with IT audit, cybersecurity, risk management, and relevant industry regulations expertise.
The ANAO’s “Cyber Security” report supports this, saying it’s important to have different types of expertise to ensure you’ve covered everything.
Once you’ve got your team together, it’s time to take a risk-based approach.
This means looking at the areas that could have the biggest impact and are most likely to pose a risk.
The 2022 IT Audit Technology Risks Survey from ISACA and Protiviti shows how the top IT audit concerns for the tech, media, and telecoms industry are cybersecurity breaches, privacy, and regulatory compliance.
By focusing on these high-risk areas, companies can make sure they’re using their resources in the best way and tackle the most critical threats first.
To make things even more efficient, it’s a good idea to use industry frameworks.
There are some great, tried-and-tested frameworks out there, like the NIST Cybersecurity Framework, ISO 27001, or COBIT, which can really help you to structure your IT audit risk assessments.
These frameworks give you a plan for spotting, looking at, and assessing risks, so you can be sure you’re doing things the same way each time.
Next, we should think about using automated tools. So, why is there a need for this? The amount of data produced by IT systems can be pretty overwhelming.
Automated tools can make data collection, analysis and reporting a lot quicker and easier, which makes the whole assessment process more efficient and accurate.
The NIST guide also says it’s a good idea to use automated tools, especially for vulnerability scanning and system security testing.
The ANAO also has some great insights into best practices. It’s a big deal to make sure you’re embedding cybersecurity into your governance and risk management practices.
This means making cybersecurity a key focus in how you oversee things and in your internal controls.
It also means making sure that it’s a regular topic of discussion among your senior management team.
In addition, the ANAO suggests regularly monitoring security risks and controls and periodic reviews of their effectiveness.
Tools and Techniques for IT Audit Risk Assessments
Risk Assessment Frameworks
One of the key parts of this toolkit is using risk assessment frameworks.
Frameworks like NIST, ISO 27001, and COBIT, as mentioned in NIST’s “Risk Management Guide for Information Technology Systems,” provide structured methodologies that guide the entire risk assessment process.
They provide a structured way to identify, assess and manage risks, making sure nothing important is missed.
Automated Tools
Let’s be honest, automated tools have become essential in every industry.
Tools like Nessus, OpenVAS and Qualys can automate the often time-consuming process of identifying vulnerabilities and assessing risks.
These tools scan IT environments, look for weaknesses, and create detailed reports that show where there might be potential for exploitation.
The NIST guide also says it’s a good idea to use automated tools, especially for vulnerability scanning and system security testing.
This helps to make the assessment process more efficient and accurate.
Cybersecurity Strategies
The Australian Signals Directorate’s (ASD) Essential Eight mitigation strategies, which you can read about in the ANAO’s “Cyber Security” report, are another great tool for IT auditors.
The strategies zero in on key areas like application whitelisting, patch management, and multi-factor authentication.
If you put these strategies in place, you’ll be much more secure and less likely to be hit by a cyberattack.
The report says that the Essential Eight were made a must in Policy 10 of the Protective Security Policy Framework (PSPF) from 1 July 2022, which shows just how important they are in Australia.
Regular Audits and Assessments
The fast-changing world of IT means new risks can pop up at any time. So, it’s important than ever to regularly audit and assess controls to make sure they’re still effective and in line with the latest threats.
The ANAO suggests doing these reviews at least once a year, but it might be necessary to do them more often, depending on the situation at the company.
For your reference of methods, kindly read “Quantitative vs. Qualitative Risk Assessment Methods: Differences, Advantages, & Disadvantages.”
How You Can Develop an IT Risk Assessment Policy with a Support System?
As you can see, IT risk assessments can often feel like a bit of a battle, given the complexities involved.
The constant worry about cyber attacks, along with the difficulty of understanding and sticking to the rules, can leave many businesses feeling overwhelmed and vulnerable.
Not having the right resources, tools or in-house expertise can make these challenges even worse, making it tough to get a solid cybersecurity strategy in place.
That’s why, at Interscale, our IT experts will work closely with you to understand your business and develop a cybersecurity strategy that’s right for you.
We’ll help you make sense of the regulatory landscape, spot the critical risks, and decide where to focus your efforts to get the best protection.
We also bring comprehensive training programmes that’ll give your employees the know-how and skills to spot and deal with cyber threats before they become problems.
We’ve teamed up with lots of different companies, including Davey Water Products, to help them tackle their cybersecurity issues and keep their systems and data safe.
So, we’d love for you to look at our Interscale Cybersecurity Services page to learn more about how we can help.
Or, if you think a coffee and croissants would be a good idea, let’s arrange a one-to-one meeting.
We’re ready to look at your specific risk assessment concerns and show you how Interscale can be your trusted partner.
In Closing
As cyber threats change, lots of businesses need to stay on their toes, keep an eye on their IT setup, and adapt to the shifting threat landscape to keep their company safe.
One of the best ways to stay proactive and adapt is to do an IT audit risk assessment.
Using Interscale will help you stay ahead of the game with IT audit risk assessment, so you can keep up with the present and future.
