Risk reduction, the final risk management process, involves prioritizing, evaluating, and implementing appropriate risk mitigation controls recommended in the risk assessment process. Because the elimination of all risks is often impractical or almost impractical, it is the responsibility of senior executives and operational and business executives to adopt a cost-effective approach and use the most appropriate controls to reduce equipment risk to an acceptable level, to a lesser extent. negative impact on the resources and horns of the organization.
This guide describes risk reduction options, risk reduction strategy, control implementation strategy, control phases, cost analysis and benefits used to justify the recommended regulatory implementation, and residual risks.
Risk Mitigation Options
Risk reduction is a systematic approach used by senior management to reduce equipment risk. Risk reduction can be achieved through any of the following risk reduction strategies:
- Risk Guessing. Accept potential risks and continue to use the IT system or use risk reduction controls to an acceptable level.
- Avoidance of Danger. To avoid danger by removing the cause of the accident and / or the outcome (e.g., leave certain system functions or close the system when a hazard is detected).
- Risk Limit. Limit the risk by using controls that minimize the negative impact of threatening use (e.g., use of support, prevention, detective controls).
- Risk Planning. Risk management by creating a risk reduction plan that prioritizes, uses, and maintains controls
- Research and Awareness. Reduce the risk of loss by admitting risk or error and research controls to correct the risk.
- Risk Transfer. Transfer risk by using other options to compensate for losses, such as buying insurance.
The goals and objectives of the organization should be considered when selecting any of these risk reduction options. It may not be possible to deal with all the risks identified, so the threat and vulnerability must be prioritized which could have a significant impact on purpose or injury. Also, in protecting the organization’s policy and its IT systems, due to the unique location of each organization and goals, the options used to reduce risk and the methods used to create controls may vary. The “best option” is to use the right technology among the various retailer protection products, as well as the right risk reduction and non-technical, management measures.
Risk Mitigation Strategy
Senior management, machine owners, being aware of the potential risks and recommended controls, may ask, “When and under what circumstances should I take action? When will I use these controls to reduce the risk and protect our organization?” The risk reduction chart in the diagram below answers these questions. Appropriate points for use of control actions are shown in this figure with the word YES.
This strategy is also reflected in the following six principles, which provide guidance on actions to reduce the risks posed by deliberate human threats:
In the event of an accident (or error, weakness) ➞ use verification strategies to reduce the risk of exposure being used.
- Where hazards may be used ➞ use horizontal protection, structural design, and management controls to minimize the risk or prevent this from happening.
- If the attacker’s cost is less than the potential profit ➞ use defences to reduce the attacker’s motivation by increasing the attacker’s cost (e.g., the use of system controls such as limiting what the system user can achieve and do can greatly reduce the attacker’s profits).
- If the loss is too large ➞ apply design principles, architectural designs, and technical and non-technical protection to limit the level of attack, thus reducing the risk of loss.
The strategy outlined above, except for the third-party item (“Where the attacker costs less than the potential profit”), also applies to reducing the risks arising from unintentional human threats (e.g., system or user errors). (Because there is no “invader,” there is no motivation or benefit involved.)
In implementing recommended risk reduction controls, an organization should consider technical, administrative, and operational security controls, or a combination of those controls, in order to maximize the efficiency of its IT systems and organization controls. Safety controls, if used properly, can prevent, limit, or prevent potential source damage to an organization’s purpose.
The recommended recommendation process will involve choosing between a combination of technical, administrative, and operational controls to improve the organization’s security standing. The transactions that the organization will need to consider are shown by looking at the decisions involved in enforcing complex passwords to reduce speculation and cracking of passwords. In this case, a technical controller that requires additional security software may be more complex and more expensive than process control, but technical controls may be more effective because the enforcement is done by the system automatically. On the other hand, process control can be easily applied with a memorandum to all concerned and the amendment of the organization’s security guidelines but ensuring that users continuously following the memorandum and guidelines will be difficult and will require security awareness training. and user acceptance.
Technical Security Controls
Risk control technologies for risk reduction can be configured to protect against certain types of threats. These controls can range from simple to complex routes and often include system structures; engineering fields; and security packages with a combination of hardware, software, and firmware. All of these measures must work together to protect sensitive and sensitive data, information, and IT system functions. Technical controls can be divided into the following main categories, depending on the main purpose:
- Support. Supporting controls are common and subject to many IT protection capabilities. These controls must be available for the use of other controls.
- Block. Prevention controls are focused on preventing security breaches from happening in the first place.
- Receive and recover. These controls focus on detecting and recovering from security breaches.
Management Security Controls
Management safety controls, in conjunction with technical and operational controls, are used to control and reduce the risk of loss and to protect organizational policy. Management controls focus on information security policies, guidelines, and standards, developed through operational processes to achieve the organisation’s goals and objectives.
Operational Security Controls
Organizational security standards should establish a set of controls and guidelines to ensure that the security procedures governing the use of the organization’s IT resources and resources are properly implemented and implemented in accordance with the objectives and function of the organization. Management plays a key role in overseeing policy implementation and in ensuring the establishment of effective performance management.
Performance controls, which are used in conjunction with a basic set of requirements (e.g., technical controls) and good industry processes, are used to address potential operational shortcomings that could potentially be a source of threat. To ensure consistency and uniformity in security practices, step-by-step procedures, and methods of using operational controls should be clearly defined, documented and maintained.
To allocate resources and use cost-effective controls, organizations, after identifying all potential controls and assessing their feasibility and effectiveness, should perform a cost-benefit analysis of each of the proposed controls to determine which controls are required and appropriate for their circumstances.
Cost and profit analysis can be by quality or price. Its purpose is to demonstrate that the cost of using controls can be offset by a reduction in risk. The organization will need to evaluate regulatory benefits in relation to maintaining an acceptable standing of the organization. As there is a cost of using the required control, there is a cost of not using it. By linking the effect of non-use to controlling the policy, organizations may decide whether it is possible to discontinue your use.
Organizations can evaluate the level of risk reduction generated by new or improved controls based on reduced risk or impact, two parameters defining a reduced level of risk in an organization’s objective.
- The use of new or improved controls can reduce the risk by:
- Eliminate other system risks (errors and vulnerabilities), thereby reducing the number of potential vulnerabilities of the threat / vulnerability.
- Adding a controlled control to reduce the power and mobility of the threat source.
Reducing the magnitude of the negative impact (for example, limiting the level of risk or adjusting the nature of the relationship between the IT system and organizational work). The remaining risk after the use of new or improved controls is residual risk. In fact, there is no risk-free IT program, and not all controls that can remove the risk are intended to address or reduce the risk level to zero. As mandated by the OMB Circular A-130, senior management of the organization or DAA, who is responsible for protecting the organization’s IT assets and operations, must authorize (or authorize) the IT system to start or continue operating. This authorization or authorization must take place at least every 3 years whenever major changes to the IT system are made. The purpose of this process is to identify the risks that have not been fully addressed and to determine whether additional controls are required to minimize the risks identified in the IT system. In government agencies, once the appropriate controls have been put in place for identified risks, the DAA will sign a statement acknowledging any remaining risk and authorizing the implementation of a new IT system or further consideration of the existing IT system. If the residual risk is not reduced to an acceptable level, the risk management cycle should be repeated in order to identify a residual risk reduction risk.
Risk reduction planning is a program to develop options and actions to improve opportunities and reduce threats to project objectives. Implementing risk reduction is the process of performing risk reduction actions. Monitoring risk reduction progress includes tracking identified risks, identifying new risks, and evaluating the effectiveness of the risk process across all of your systems and processes. Fortunately, it is now easier to manage your potential risks with the professional solutions and services of Kanoo Elite, which provides the most secure solutions and risk reduction services. Kanoo Elite System Engineers (SEs) working on a wide range of programs – helping you develop practical risk mitigation strategies and monitoring metrics, monitoring the implementation of risk reduction programs to ensure successful project and program completion, and teaming up with risk assessment in all projects and programs, and analyse metrics to determine ongoing risk status and identify serious risks to elevate.