I recently had a conversation with clients around a risk analysis they conducted and noticed as they walked me through it that they seemed to get hung up on the terms “inherent risk” and “residual risk” and what inherent risk represented in that particular scenario.
The first big step in a risk analysis is scoping. Each part of the analysis process builds on the other so if you get scoping wrong, the rest of your analysis is on shaky ground at best. Remember, scoping is where you clearly:
FAIR Institute Board Member Wade Baker started the Verizon Data Breach Investigations Report (DBIR), the granddaddy of cybersecurity incident reporting, and still the leading source of hard data on the threat landscape.
With the massive flooding in Houston from Hurricane Harvey, we're re-publishing this very relevant post from 2016 by Steve Poppe about how local governments can apply FAIR modeling to plan for megastorms.
Honoring Excellence in Information and Operational Risk Management
At the FAIR Conference 2017 in Dallas, October 16-17, The FAIR Institute will honor risk management leaders for their initiative, ingenuity and contributions to information and operational risk management.
This is the most common “sin” we run into within the industry. Analysts, often not specifically trained on risk, focus almost solely on controls and their effectiveness.
Yes, this is Cyber Risk 101, but risk analysis vs risk assessment is common confusion, so let Jack Jones explain it in an excerpt from his book Measuring and Managing Information Risk: A FAIR Approach:
Larry Clinton has been advocating for cybersecurity in Washington since the days when “I had to start the conversation by spelling ‘cyber’”. President of the Internet Security Alliance since 2003, Clinton has doggedly pushed Congress and successive Administrations to take a holistic approach to information security issues or, as he calls it, the Cybersecurity Social Contract, laid out in a book of the same title, from the ISA.
Annualized Loss Exposure (ALE) is a key output from a FAIR quantitative risk analysis. ALE is computed as:
ALE = Event Frequency x Single Loss Magnitude
This may not come as a shock, but a big part of what a risk analyst does is analyzing the issues that an organization is concerned with occurring.
The analysis part of the job spans an entire process, but a critical part involves first finding those things that are worth conducting a risk analysis over.