Interscale Content Hub – An IT risk assessment framework is a structured way of identifying, evaluating and reducing the risks associated with information technology within an organisation.
It offers a complete way to deal with potential dangers, making sure that the IT system is safe and secure.
So, putting in place a solid IT risk assessment framework is a great way to keep data safe, make sure you’re on top of regulatory standards, and keep cyber threats away.
Importance of IT Risk Assessment Framework
It’s no secret that the digital landscape is full of risks, from cyber-attacks to data breaches. The thing is, every year those attacks and losses are getting bigger.
The Australian Signals Directorate (ASD) Cyber Threat Report 2022–23 says that cybercrime cost Australian businesses 14% more than the previous year.
On average, small businesses lost around $46,000, medium-sized businesses lost around $97,200, and large businesses lost around $71,600.
A good IT risk assessment framework helps businesses identify vulnerabilities, assess their potential impact, and put strategies in place to mitigate risks.
What’s more, having to stick to the rules is a big reason why companies adopt IT risk assessment frameworks.
In Australia, there are laws like the Privacy Act 1988 and the Notifiable Data Breaches (NDB) scheme that make sure data is protected. Not complying can lead to hefty fines and damage to your company’s reputation.
In the meantime, for some software references, you might want to read “Here’s 5 IT Risk Assessment Software to Outsmart Cyber Threats in 2024.“
Popular IT Risk Assessment Frameworks
There are plenty of well-established IT risk assessment frameworks out there, each with their own strengths and focus areas. So let’s take a look at some of the most popular frameworks.
NIST Risk Management Framework (RMF)
The National Institute of Standards and Technology (NIST) Risk Management Framework (RMF) is a complete approach for combining security and risk management activities into the system development life cycle.
NIST RMF is used in pretty much every sector, public and private, because it’s such a good process framework. The seven-step process is pretty detailed.
- Preparing the organisation
- Categorising information systems
- Selecting appropriate controls
- Implementing these controls
- Assessing their effectiveness
- Authorising systems for operation
- Continuously monitoring the security posture.
As you can see; it’s a structured, systematic approach ‒ which means that security and privacy risks are managed effectively throughout the system’s life cycle.
You can find out more in NIST Special Publication 800-37, Revision 2, which explains the framework’s steps and best practices for implementation.
ISO 27005
ISO 27005 gives you some handy tips for managing information security risks, in line with the broader ISO/IEC 27001 standard.
It offers a structured way to manage information security risks, helping organisations identify, assess and deal with risks effectively.
ISO 27005 is a must for anyone looking to set up an Information Security Management System (ISMS). It makes sure that information security risks are managed in a structured way.
This framework is great for organisations that want to comply with international standards and improve their security.
The Australian National Audit Office and other Australian companies use ISO 27005 to keep their information security practices strong.
OCTAVE
The OCTAVE framework is a strategic assessment and planning technique that helps organisations identify and plan for risks.
OCTAVE is different from other frameworks in that it puts a strong focus on a risk-based approach that brings together the business and IT sides of things.
This framework helps organisations identify their most important assets, look at how they can be made more secure, and come up with ways to reduce the risks they face.
It’s great for organisations that need to see the big picture of their risk landscape, taking both strategic and operational factors into account.
The framework is often used by government bodies and large companies to make sure their risk management strategies match up with their overall goals.
FAIR (Factor Analysis of Information Risk)
FAIR is a framework that helps us understand, analyse and quantify information risks in financial terms.
This quantitative approach helps organisations work out the financial impact of information risks, which makes it easier to communicate with stakeholders and make better decisions.
FAIR is great for organisations that want to turn complex risk scenarios into understandable financial metrics. It makes it easier to prioritise risk management efforts and allocate resources effectively.
The framework’s focus on financial analysis makes it a great way to link risk management with business goals.
COBIT
COBIT is a framework developed by ISACA for IT management and governance. COBIT gives you all the guidance you need to manage and govern your company’s IT, making sure it’s all working towards your business goals.
It includes principles, practices, and analytical tools to help organisations get the most out of their IT investments while managing risks and staying on the right side of the law.
COBIT is used a lot in different industries to set up a solid governance structure and improve IT processes. It’s a great framework for achieving strategic goals and staying on the right side of the regulators.
Best Practices for IT Risk Assessment Framework
Firstly, getting key people involved in security awareness training can really help an organisation to defend itself against cyber threats.
This collaborative approach ensures that every aspect of the organisation’s operations is considered, creating a more robust and all-encompassing risk management strategy.
By engaging stakeholders across all levels, we can ensure diverse perspectives and thorough risk management.
Next, it’s vital to keep the risk assessment up to date to reflect changes in the IT environment and emerging threats.
The ever-changing nature of cyber threats, as highlighted by the CrowdStrike 2024 Global Threat Report, shows us why it’s so important to regularly update risk assessments.
This means the framework stays up to date and effective against the latest threats, keeping the organisation resilient in the face of evolving risks.
For this reason, training and awareness programmes for employees are key parts of a strong risk management strategy.
For instance, the Notifiable Data Breaches Report from January to June 2023 by the Office of the Australian Information Commissioner shows that human error accounted for 26% of breaches.
So, it’s clear that you need to keep up with the need for continuous training and awareness initiatives.
These programmes give employees the knowledge they need to spot and deal with threats, which makes it much less likely that they’ll succeed.
But not everything is a manual process. Automated tools make risk assessments more efficient and accurate.
Using the latest tools helps companies to quickly spot and deal with threats.
Automation in risk management can make processes easier and more accurate, which helps organisations to spot and deal with threats more effectively.
Finally, scenario analysis helps organisations prepare for any potential IT disruptions.
By doing scenario-based analyses, you can come up with strong response strategies to make sure that incidents don’t have too much of an impact.
This proactive approach will help you keep your IT infrastructure in good shape, as it gives your organisation well-thought-out plans to handle different types of disruptions.
On the other hand, if you want to get a feel for the template, you can read “Business Survival Kit: An IT Risk Assessment Template You Need is Here.”
How to Get an IT Risk Assessment Framework with a Good Support System?
Dealing with the constant changes in the cyber threat landscape can be tough, especially when it comes to putting together a complete IT risk assessment framework.
A lot of companies find it tough to get the resources and expertise they need to deal with this really important part of cybersecurity.
That’s why we’ve put together a full range of cybersecurity services to help you identify, assess, and reduce the risks to your valuable assets.
So, what does that mean for you?
We’ll work with you to create a plan that’s just right for your business.
We start by taking a close look at your company’s information assets and finding out where the biggest risks lie.
Next, we work with you to create a solid cybersecurity plan that fits with your business goals and risk appetite.
We’re also here for you 24/7 with security system monitoring and management, so we can spot and respond to threats as they happen.
For instance, we’re helping Davey Water Products identify and tackle some pretty major cybersecurity issues. This means they can keep their systems and data safe and secure.
We get it – you might want to do a few background checks on us before you get started. We also don’t want you to get hooked on all the marketing sugar coating and end up with diabetes.
So, as a taster, kindly visit and read our Interscale Cybersecurity Support page.
And please don’t hesitate to book an appointment with us. We’re here for you 24/7 to discuss your specific needs.
In Closing
If you know what the key features are, you can explore well-known frameworks and follow best practices to create a secure and resilient IT environment.
But, given the complexity of the task at hand, partnering with a specialist service provider like Interscale can really help to make your efforts more effective.
By taking these steps, you can create a solid IT risk assessment framework that keeps your company’s digital assets safe and sound.
