We all know lots of companies use the IT risk management framework. But why is that?
Simply put, as companies rely increasingly on tech to run their operations, they’re exposed to a variety of risks.
If we don’t manage those risks properly, they could cause a lot of damage to your finances and reputation.
So, an IT risk management framework is a great way to identify, assess and mitigate risks. It helps organisations to confidently navigate the digital landscape.
What is Risk Management Framework in IT?
A risk management framework (RMF) is a structured way for organisations to identify, assess, manage and monitor risks associated with their IT systems.
It offers a structured way to understand the potential threats and vulnerabilities that could affect an organisation’s IT systems and data, and outlines strategies to deal with these risks.
The Australian National Audit Office (ANAO) says in its “2022–24 Risk Management Framework,” you can’t meet your objectives without effective risk management.
So, RMF enables informed decision-making and enhances overall performance. It’s not just a set of guidelines.
RMF shows the company is serious about managing risks in a proactive way at every level of the business.
The RMF usually includes a few key parts: identifying risks, assessing them, dealing with them, and keeping an eye on them.
The ANAO’s framework is in line with the ISO 31000 standard, which defines risk as “the effect of uncertainty on objectives.” It also incorporates these practices into its governance and business processes.
The framework also encourages a positive approach to risk within the organisation, where risk management is seen as an essential part of strategic planning and day-to-day operations.
Difference between IT Risk Management and Cybersecurity
It’s easy to get them mixed up, but IT risk management and cybersecurity are two different but related areas of expertise.
IT risk management looks at the bigger picture. It covers all the potential risks that could affect an organisation’s IT environment, including operational risks, financial risks and reputational risks.
Cybersecurity is all about protecting IT systems and data from people getting in who shouldn’t, using it in ways they shouldn’t, or getting hold of it and changing it in ways that could cause problems.
So, cybersecurity is a kind of subset of IT risk management, dealing with a particular type of risk within the wider IT environment.
The Global Partnership for Education (GPE) makes a clear distinction between the different types of risk in its “Risk Management Framework and Policy.”
These include operational, strategic, and external/contextual risks, with cybersecurity falling under the operational risk category.
For more insights, please refer to “IT Risk Management Process 101: Framework, Tools, & Best Practices.”
Popular IT Risk Management Frameworks
NIST Risk Management Framework
The US National Institute of Standards and Technology (NIST) Risk Management Framework is a pretty popular one. It offers a complete way to handle IT risks.
It sets out a six-step process: categorise, select, implement, assess, authorise and monitor.
This framework is all about keeping an eye on things and making changes when needed.
It helps make sure the risk management process stays effective even as threats and vulnerabilities change.
ISO 31000
The ISO 31000 standard is a globally recognised framework that provides principles and guidelines for risk management, which any organisation can use, no matter the size or industry.
The ANAO’s “Risk Management Framework 2022-24” is based on the ISO 31000:2018 standard, which shows how relevant and useful it is for IT risk management.
What makes ISO 31000 so useful is that it’s flexible, so organisations can adapt it to suit their own needs and circumstances.
ISO 31000 gives you a set of principles and guidelines for setting up a risk management process, including things like identifying, analysing, evaluating and treating risks.
COBIT 5 for Risk
COBIT 5 for Risk is a framework developed by ISACA that’s all about managing IT risks.
It offers a structured way to make sure that IT risk management is in line with the overall goals of the company.
COBIT 5 is all about taking a big-picture view of IT risk management. It looks at all the different things that can help or hinder this, such as principles, policies, processes, structures, culture, information, services, people, skills, and competencies.
The paper by Azizi et al., “Developing an IT Risk Management Culture Framework,” shows how important it is to have the right culture in place if you want to successfully implement IT risk management initiatives.
FAIR (Factor Analysis of Information Risk)
FAIR is a way for businesses to measure and analyse IT risks in financial terms.
It offers a structured way to figure out how likely a risk is to happen and how much of an impact it could have.
Other frameworks might rely more on qualitative assessments, but FAIR uses a data-driven approach to evaluate risks in financial terms.
This makes it a great choice for organisations looking for a straightforward, numerical understanding of their risk exposure.
This helps your organisation make smart choices about how to spend money reducing risks and focus its risk management efforts on the areas that could cost it the most.
OCTAVE (Operationally Critical Threat, Asset, and Vulnerability Evaluation)
OCTAVE is a risk management framework developed by Carnegie Mellon University’s Software Engineering Institute.
It’s designed to help organisations identify and manage risks to their most important assets. OCTAVE has three main steps:
- You identify the critical assets
- You identify the vulnerabilities and threats
- You develop a risk mitigation strategy.
The OCTAVE approach makes sure that stakeholders are involved in the risk management process from start to finish.
This helps to make sure that the risk assessments and mitigation strategies are in line with what the organisation actually needs and what its priorities are.
Elements of an IT Risk Management Framework
An IT risk management framework is not just a one-time thing. It’s a dynamic system to help organisations spot, assess, and manage risks related to their IT infrastructure.
One of the most fundamental parts is spotting potential risks.
This is done by looking at how likely they are to happen and how much they could affect the company’s goals.
Next, we assess the risks. We use both qualitative and quantitative tools to evaluate the risks.
For example, ANAO uses a Risk Evaluation Matrix that combines a consequence rating scale and likelihood analysis scale to assign risk ratings.
Neda Azizi and her co-authors look at how including cultural aspects in the risk management process can be a big plus for organisations.
They say the success of IT risk management often depends on the organisation’s values and behaviours, which can either help or hinder the risk management processes.
For instance, if there’s an open culture where people feel comfortable sharing their concerns, risk identification and reporting will likely be effective.
The same goes for a full IT risk management framework, which should include monitoring and reviewing risks regularly.
The ANAO says it’s crucial to keep a ‘live’ Enterprise Risk Register that’s regularly updated to reflect changes in the risk environment and ensure the effectiveness of risk mitigation strategies.
This approach lets you make changes to risk management strategies as things happen, so you can deal with risks before they become problems.
For another frame of reference, you might want to read “MobileIron EMM: A Quiet Achiever in Mobile Security Mobile Management.”
Why Should It Be Linked to Other Business Processes?
Connecting the IT risk management framework to other business processes is key to making sure that risk management fits into the company’s big picture.
The ANAO’s framework makes it clear how risk management fits into its overall strategy, showing how important it is to link risk management with business goals.
This way, companies can make sure their risk management isn’t treated as a separate, isolated function, but is instead an integral part of their day-to-day business operations.
The link is vital because it makes sure all the risk management practices fit with the company’s overall mission and objectives.
If, for instance, a business process like procurement is linked closely with the IT risk management framework, any risks associated with things like vendor management, supply chain disruptions or cybersecurity threats can be identified and dealt with early on in the process.
The ANAO’s approach shows how risk management can be built into everyday business practices.
This helps people make evidence-based decisions and makes the whole organisation more resilient.
The other thing is you can get a better overview of risks if you integrate IT risk management with other business processes.
That way, you can see how risks in one area might affect others.
For example, Azizi and Rowlands point out how it’s important to think about cultural factors when linking IT risk management with other business processes.
They say that a culture that values collaboration and sharing knowledge can really help us manage risks better.
This is made possible by sharing information about risks across departments and business units.
How Interscale Help You in IT Risk Assessment & Management
At Interscale, we take a comprehensive approach to IT risk assessment and management that aligns with the principles outlined in the ANAO’s framework.
One of the things we’re really good at is integrating advanced threat detection tools, like spam and phishing filters, into our email security services.
What’s more, Interscale’s cloud-based platform offers real-time analysis of URLs and attachments, along with policy-enforced encryption and data loss prevention measures.
Interscale also helps you keep an eye on risks as they happen with its premium email archive service, which includes a 10-year cloud archive for easy access to historical data.
What does that mean for you?
These features mean there’s a much lower chance of potential risks affecting an organisation’s IT environment, and if they do, the impact will be much less.
Our experts are here to help you every step of the way, and we’ll tailor our approach to meet your industry’s unique demands.
So, what can you expect from the marketing campaign above?
We get that your projects are a big deal. And we’re here to make sure your IT risk management doesn’t get in your way.
And we don’t expect you to take our word for it without doing your own research.
So, take a look at our Interscale Email Security Protection Service page, read our success stories, and see what we’ve done for other AEC companies.
We also think it’s a good idea to meet in person. So, why not grab a coffee and a croissant and have a catch-up with us?
In Closing
If you bring risk management into the mix when you’re doing different bits of your business, and use services like the ones Interscale offers, you’ll be more resilient and adaptable.
Remember, the IT risk management framework is what holds everything together. It makes sure the business can keep going strong for a long time to come.
