My @ISACA column was published today. Read it here.
Edited:
I realized they edited the full submission I made (I could tell because it sounded a little off from what I recalled). Below is the full post:
Depending on your point of view, risk management is either a very easy or a terrifically difficult job. If you approach IT risk management from a controls perspective (as in, “This asset doesn’t have all the controls listed here. That’s a risk.”), then risk management is very easy for you. Simply add the missing control and everything’s back to normal. If anyone objects to your solution, it’s very easy to show them the worst that could happen, and paint them as an irresponsible steward of your organization in order to get the funding you need.
If, however, you feel that the control deficiency calls for some analysis, then risk management is much more difficult. In order to analyze the risk, you need to conduct research to understand which assets reside on that system, how often it is attacked from various threat communities, and the cumulative strength of the remaining controls. This approach involves building a model of attack sequences with associated probabilities and losses and considering the risk scenario in the greater context of the organization’s goals, objectives, and overall risk posture. In other words, this approach is risk analysis in support of well-informed risk management.
It is certainly easier to respond emotionally with phrases such as “I feel like this is a high,” or “I think our customers would be upset,” or even, “Our CEO could end up in jail!” Its a very rare scenario where we hear, “The analysis has shown…” Imagine buying insurance where the agent tells you they “feel” like you are high risk but are unable to tell you why. At best, emotional responses like these support misallocating company resources on unnecessary controls. At worst, it may make it difficult for your company to effectively compete in an evolving marketplace. Practicing risk professionally means eschewing an emotional response in favor of risk analysis. An emotional response to risk is not a valid substitute for critical thinking.
The Risk Dr ® 