After all, data breaches can have catastrophic consequences. Therefore, the IT risk management process is more than just a corporate buzzword.
And it’s normal – in a world where innovation and agility are king, it’s easy to forget how important risk management is.
However, regardless of size or industry, every business faces many risks that can threaten its existence.
So, let’s talk about the IT risk management process in more detail.
What Is the IT Risk Management Process?
The IT risk management process is a way of identifying, assessing and dealing with the risks that come with using information technology.
It’s a set of steps to make sure your company’s IT systems and data are safe from threats.
This structured approach is essential for businesses of all sizes, as it provides a clear plan for managing the complexities of information security and privacy risks.
It’s not a one-off thing, it’s an ongoing process. So you need to keep an eye on it and review it regularly.
The aim of IT risk management is to protect the company’s mission and assets by reducing the negative impact of IT-related risks.
The US National Institute of Standards and Technology (NIST) has put together a great guide called “Risk Management Guide for Information Technology Systems, Special Publication 800-30,” that explains IT risk management in a really clear way.
Before going any further, you might want to read “MobileIron EMM: A Quiet Achiever in Mobile Security Mobile Management.”
What are the Basic IT Risk Management Processes?
There are three basic IT risk management processes: Identification, assessment, evaluation and prioritization, mitigation and treatment, monitoring and review, plus reporting and communication.
Let’s discuss it further.
Step 1: Risk Identification
Identifying risks is the first step in managing IT risks. It basically means working out what could go wrong with an organisation’s IT assets.
The “Risk Assessment Process Manual,” by the Association of Registrars and Collections Specialist (ARCS) makes a strong case for evaluating potential hazards and understanding their impact on the organisation.
This stage often involves looking at what’s happened in the past, checking out potential external threats like cyber-attacks, and thinking about internal weaknesses like outdated software.
For Australian businesses, this is a vital step in getting a handle on the specific risks posed by the local and global digital landscape.
Step 2: Risk Assessment
Once we’ve identified the potential risks, the next thing we need to do is assess how likely they are to happen and what impact they could have.
This means looking at how likely each risk is to happen and what the results would be if it did.
It’s a good idea to think about both quantitative and qualitative factors when you’re doing the assessment.
For instance, the chance of a cyberattack could be gauged by looking at how often such attacks happen in the industry.
The impact could be evaluated based on the potential financial loss and damage to reputation.
The NIST publication gives really detailed guidance on how to do risk assessments. It even includes a risk-level matrix to help you work out the overall risk rating for each identified risk.
Step 3: Risk Evaluation and Prioritization
Once you’ve assessed the risks, you need to evaluate and prioritise them.
The NIST Special Publication SP 1314 “NIST Risk Management Framework (RMF) Small Enterprise Quick Start Guide,” using a simple ranking system to give each risk a priority level.
This means looking at the risks and seeing which ones are the biggest threat to how the company operates.
For instance, risks that could result in major financial losses or damage to the company’s reputation are usually given higher priority.
This step makes sure that resources are used in the best way possible, focusing on getting rid of the most critical risks first.
Step 4: Risk Mitigation and Treatment
Once we’ve evaluated and prioritised the risks, the next step is to come up with strategies to deal with them.
This could mean putting in place security controls like firewalls, antivirus software and intrusion detection systems.
It might also mean putting together a plan to keep things running smoothly if something goes wrong.
The NIST publication goes over different ways to deal with risks, like accepting them, avoiding them, limiting them, planning for them, and transferring them to someone else.
The best way to deal with each risk will depend on the specific issue and how the company wants to handle it.
Step 5: Risk Monitoring and Review
Keeping an eye on things all the time is key to making sure risk management is working as it should over time.
The NIST RMF suggests doing regular reviews and updates to the risk management plan when new threats come up or when the organisation’s IT environment changes.
In Australia, this could mean adapting to changes in local cybersecurity regulations or responding to new types of cyber threats.
It’s good to have regular reviews so that organisations can stay on top of potential risks and make any necessary adjustments to their strategies.
Step 6: Risk Reporting and Communication
Good communication is key to making any IT risk management process a success. So, it’s important to keep senior management and other stakeholders up to date on how the programme is going.
This means sharing info on the risks we’ve spotted, the controls we’ve put in place and the risks that are left.
The ARCS suggests putting together an official report or briefing on the risk assessment process and results to help senior management make decisions.
IT Risk Management Frameworks and Standards
One of the most well-known frameworks is the NIST Risk Management Framework (RMF), which is explained in great detail in the NIST RMF Small Enterprise Quick Start Guide.
This guide sets out a seven-step process covering things like risk framing, assessment, response and continuous monitoring.
The great thing about the RMF is you can use it no matter what size your organisation is.
That includes small and medium-sized businesses in Australia, which often have limited resources but still have to stick to the latest cybersecurity standards.
The NIST “Risk Management Guide for Information Technology Systems” shows how IT risk management should be part of the wider organisational risk management strategy.
It shows how understanding the specific risks of your IT environment and adapting your approach to suit is key to success.
For instance, organisations need to assess how IT risks might affect their ability to operate and comply with the law. This is particularly important in sectors like finance and healthcare.
Tools and Technologies for IT Risk Management
There are lots of tools and tech out there that can help you manage these risks effectively.
From simple spreadsheets and risk registers to sophisticated governance, risk, and compliance (GRC) platforms, these tools can make it easier to manage risks.
GRC platforms can automate tasks like risk identification, assessment, control monitoring, and reporting, giving you real-time insights into your company’s risk posture.
When it comes to email security – which is a really important part of IT risk management – Interscale has got you covered with a powerful email security protection.
Our services are built around Proofpoint Essentials, an enterprise-grade email security platform designed to keep your business safe from advanced threats.
Proofpoint Essentials is more than just standard email security. It also offers advanced threat protection, data loss prevention, and business continuity features, so you can rest easy knowing your business is secure even during unexpected disruptions.
What’s more, Interscale’s cloud-based platform gives businesses the freedom to manage their security settings without needing to set up a lot of on-site infrastructure.
We don’t expect you to take our word for it without doing your own research.
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 good to meet in person. So, why not grab a coffee and a croissant and have a chat with us?
Anyway, for a broader insight, you can also read “Cisco Enterprise Mobility Management: Making Mobile Simple and Secure.“
Best Practices for Effective IT Risk Management
It’s not enough to just follow frameworks and use advanced tools when it comes to implementing best practices in IT risk management.
The whole IT risk management process needs to be strategic, with a focus on continuous improvement and adapting to new threats.
The NIST RMF says we should regularly update our risk management strategy, especially as new tech and threats emerge.
This means checking the risk assessments from time to time to make sure the controls are still working well and are up to date.
Another top tip from the ARCS is to get a diverse team involved in the risk assessment process.
It’s always a good idea to get input from people in different departments.
That way, you’re more likely to identify all potential risks and devise effective ways to deal with them.
The ARCS also recommends conducting risk assessments at least once a year or more often if your IT environment undergoes major changes.
This proactive approach is vital for keeping your security strong, especially for startups that often grow fast and experience lots of tech changes.
In Closing
If you take a structured approach, use the right tools and follow best practices, you can manage your IT risks and keep your business safe.
Just remember, IT risk management is something you have to keep on top of, not something you can get to the end of and then stop.
That’s why Interscale is there for you, keeping a close eye on things and making sure your IT risk management process is always up to date.
