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For example, suppose a risk analysis identifies the threat of attack on a public web server Specific EF and ARO figures have been identified for a range of individual threats Now the risk analyst applies a range of fixes (on paper), such as an application firewall, an intrusion prevention system, and a patch management tool Each solution will have a specific and unique impact on EF and ARO (all estimates, of course, just like the estimates of EF and ARO on the initial conditions); some will have better EF and ARO figures than others Each solution should also be rated in terms of cost (in financial estimate terms or H-M-L) and effort to implement (financial or H-M-L) NOTE Developing mitigation strategies is the first step in risk treatment, where various solutions are put forward, each with its cost and impact on risk
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Risk Analysis and Disaster Recovery Planning Disaster recovery planning (DRP) and business continuity planning (BCP) utilize risk analysis to identify risks that are related to application resilience and the impact of disasters The risk analysis performed for DRP and BCP is the same risk analysis that is discussed in this chapter the methods and approach are the same, although the overall objectives are somewhat different Disaster recovery planning and business continuity planning are discussed in depth in 7 High-Impact Events The risk manager is likely to identify one or more high-impact events during the risk analysis These events, which may be significant enough to threaten the very viability of the organization, require risk treatment that belongs in the category of business continuity planning and disaster recovery planning These topics are discussed in detail in 7
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When risks to assets have been identified through qualitative or quantitative risk analysis, the next step in risk management is to decide what to do about the identified risks In the risk analysis, one or more potential solutions may have been examined, along with their cost to implement and their impact on risk In risk treatment, a decision about whether to proceed with any of the proposed solutions (or others) is needed Risk treatment pits available resources against the need to reduce risk In an enterprise environment, not all risks can be mitigated or eliminated, because there are not enough resources to treat them all Instead, a strategy for choosing the best combination of solutions that will reduce risk by the greatest possible margin is needed For this reason, risk treatment is often more effective when all the risks and solutions are considered together, instead of each one separately When risk treatment is performed at the enterprise level, risk analysts and technology architects can devise ways to bring about the greatest possible reduction in risk This can be achieved through the implementation of solutions that will reduce many
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2: IT Governance and Risk Management
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risks for many assets at once For example, a firewall can reduce risks from many threats on many assets; this will be more effective than individual solutions for each asset So far I have been talking about risk mitigation as if it were the only option available when handling risk Rather, you have four primary ways to treat risk: mitigation, transfer, avoidance, and acceptance And there is almost always some leftover risk, called residual risk
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Risk mitigation involves the implementation of some solution that will reduce an identified risk For instance, the risk of malware being introduced onto a server can be mitigated with antivirus software or a network-based intrusion prevention system Either of these solutions would constitute mitigation of this risk on a given asset NOTE An organization usually makes a decision to implement some form of risk mitigation after performing some cost analysis to determine whether the reduction of risk is worth the expenditure of risk mitigation
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