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Risk Management Methodology In ISO 27001

Overview of ISO 27001

ISO 27001 is an internationally recognized standardized management system and its core is Information Security Management System (ISMS) under which Information Security Risk Assessment will be executed.

The core purpose of ISO 27001 was to ensure data security, company’s confidentiality and grants you an ability to bring customers in your trust that their information is completely secured with you with a process based approach along with fulfillment of all the requirements of information Security Management System (ISMS).

As far as Information Security Risk Assessment is concerned, it is defined as a process where an assessor will try to identify any risk existing in your current management system that may cause harm to the system, your products, and your services or to your information confidentiality that may put your clients to potential risk.

Best Practices of Risk Management As Defined In ISO 27001

The framework of ISO 27001 highlights following best practices of system security and risk management:

  • Protection of Employee’s and Client’s information
  • Effective risk management by managing system’s security
  • To become 100% compliant with regulations and standards such European Union General Data Protection Regulation (EU GDPR)
  • Company and Brand image protection

What ISO 27001 Section 6.1.2 States about Risk Management Approach

The section 6.1.2 of ISO 27001 states clauses about risk management procedure for security of information:

  • Establishment of Risk management criteria and identification of potential risks to the security management system.
  • Establishment of periodic risk assessments in order to accomplish consistency in product quality and compatible services.
  • Identification of potential risks that can threaten security of information security management system.
  • Evaluation of information security system, recording and analysis of the results according to risks identification criteria.

Rock Solid Seven Foundation Steps to Effective ISO 27001 Risk Management

  • Design Risk Management Methodology

There is no as such risk management methodology being defined in ISO 27001. One can define the risk management methodology in accordance to its business and working principles and by keeping in view all the requirements of ISO 27001. However, the baseline of risk management methodology should be based on concrete security criteria, scale of risk, scenario and asset based risk assessment.

  • Company’s Information Asset Listing

Valuable company’s information asset includes confidential information in the form of hard copy and soft copy. Make an existing list of Company’s information about assets. If the list already exists then do a verification check if the list is updated with all the assets or not.

  • Identification of Potential Threats and Risks

After identification of company’s information asset, the next significant step is to highlight all the possible potential risks that can be applied to each company’s information asset.

  • Measure the Extent of Risk

Build a risk matrix in which list down all the risks involved, predict its likelihood, occurrence and severity.

  • Risks Mitigation

Classify all the predicted risks into High, Medium and low priority. Devise a plan to mitigate, eliminate or substitute those risks with optimum solutions.

  • Risks Reports Compilation

Compile the risks reports in which risk matrix with risks mitigation plans has been mentioned.

  • Review and Monitoring of Plan

The basic requirement of ISO 27001 is to update (if needed), review and monitor the risk management plan from time to time in order to monitor the risks and its mitigation plan performance with rapid changing environment.

Other ISO standards for Risk Management

Following enlisted are the ISO standards that supports ISO 27001 in risk management approach:

  • ISO 27005:2011 – Guidelines for risk management for information security
  • ISO 31000:2009 – Basic Principles about Risk Management
  • ISO 31010:2009 – Methodologies and Standardized Approach about Risk Assessment and its Techniques

Want to consult an ISO advisor? Tap us for ISO consultancy today.

Top Key Benefits of ISO 27001 Implementation

 Among numerous benefits of ISO 27001 implementation, here comes some top key benefits of ISO 27001:

  • Competitive Marketing Edge

Having ISO 27001 being deeply embedded in your management system gives you a unique selling point (USP) to represent to clients. Plus it will help you to be different to your competitors when it comes to tender winning race. Your marketing team will definitely get an edge over marketplace competitors hence giving you more chances to enter to new business opportunities.

  • Cost Effective Solution

A common myth exists in market that putting information security in your system gives you no financial gain which is totally wrong. Think of the financial loss that you may face due to leakage of confidential information of your business or about your clients’ business giving your brand reputation a smashing hit that is nearly impossible to get recovered.

Take this fact the other way around. Imagine the amount of money you could have saved if you could have somehow was able to prevent the confidential information leakage incident. Hence, prevention is better than cure.

  • Better Business Management

ISO 27001 is a proven tool to get your business in the order just as you always wanted to have. But How? The guidelines of ISO 27001 helps in great extent to define and divide the roles and responsibilities among the team ensuring employees’ engagement to the next level making your journey towards success more systematic.

  • Fulfillment of Quality Compliance

Want to have something which can give you quick “Return on Investment” then ISO 27001 compliance is just the right thing to do. Be it data protection, privacy and IT security ISO 27001 caters all the factors of compliance which makes you ultimately more trustworthy among customers, suppliers and vendors.

  • Awareness on Risk Management Among Employees

Through various training and refresher sessions, the awareness level on risk management can have an upright boost which will ensure employees’ focus on better risk management and will develop an eagerness to learn risk management techniques and to ISO 27001 successful implementation.

 

About Sunita Verma

Sunita Verma, Founder and President of Sync Resource started the company in 2009 with a vision to provide management consulting to small & medium size businesses around the country. Sunita holds a Master’s Degree in Mechanical Engineering from Cleveland State University, Cleveland, Ohio, Bachelors in Mechanical Engineering(India) with prestigious gold medal by then President of India and renowned Scientist Dr Abdul Kalam Azad. As an active philanthropist she believes in pay it forward and is a contributing member of charitable organizations like St. Jude’s Foundation and North Fulton Charities.

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