In this blog post, we'll cover:
ISO 27005 is an international standard for managing information security risks. It helps organisations identify, assess, and handle risks to keep their information safe. This standard complements ISO 27001 by focusing on risk management, which is essential for protecting data from threats. The standard is useful for any organisation looking to strengthen its cybersecurity.
Organisations of any size and in any sector can follow ISO 27005. For this reason, the ISO 27005 standard doesn't set a strict path for compliance. Instead, it proposes recommended practices. These practices are compatible with a typical Information Security Management System (ISMS).
ISO 27005 provides guidelines for procedures that are essential for an ISMS. These procedures include identifying, assessing, evaluating, and treating information security vulnerabilities. Following ISO 27005 helps organisations handle security controls and other measures better.
ISO 27005 can help your organisation conduct a more accurate information security risk assessment based on which you can improve your ISMS.
Information security risk management is identifying and mitigating risks related to information technology. It's a continual process that includes:
Risks can potentially affect an organisation's confidentiality, reputation, and asset availability. Information security risk management can't stop all risks. But it helps organisations define and maintain an appropriate level of risk. Organisations should manage risk in line with their risk tolerance.
ISO 27005 defines best practices for information security risk management. It defines consistent processes within a broader framework. Implementing these processes helps organisations handle risks more reliably and more effectively.
The ISO 27000 series is a set of standards that addresses information security. ISO 27005 helps organisations follow ISO 27001. That is why even though ISO 27005 is not particularly well known, many companies may have already implemented it by means of following ISO 27001.
ISO 27001 is the leading international standard for information security. It guides organisations in protecting their information in a systematic and cost-effective way. It promotes adopting an ISMS.
ISO 27001 certification requires an organisation to prove aspects of risk management, including:
Annex A contains reference control objectives and controls. The controls help an organisation structure its ISMS and meet ISO 27001 requirements.
Risk assessments are one of the most important parts of complying with ISO 27001. ISO 27005 gives guidance on identifying, assessing, evaluating, and treating information security vulnerabilities. These procedures are key for an ISO 27001 information security management system.
ISO 27001 requires that controls applied as part of an ISMS be risk-based. Implementing an ISO 27005 information security risk management plan fulfils this rule.
ISO 27005 doesn't specify a particular risk management method. It promotes a continual process based on seven components. These steps overlap somewhat in their application.
Each main phase of the process has four steps:
This structure provides the right information to start each risk management activity. Here they are in more detail.
The first step for risk management with ISO 27005 is establishing the context. This step should define the organisation's risk evaluation criteria and risk acceptance criteria. ISO 27005 provides criteria for defining context according to factors such as:
Establishing the context for risk assessment is important. It helps ensure that the entire organisation does assessments the same way.
Defining risk management processes includes deciding which type of assessments to use. Quantitative or qualitative assessments are possible.
Quantitative measurement has the disadvantage of relying on historical data. Managing new risks is a more important goal for risk management.
Qualitative measurement is, by nature, a form of estimation. It can be accurate within defined boundaries, though. For example, terms like "high" or "low" to measure the consequences of risk are too vague.
A more useful qualitative scale for risk impacts might include categories such as:
This type of measurement will produce a more evidence-based and accurate process.
The risk assessment process includes risk identification, estimation, and evaluation. Many organisations use an asset-based risk assessment process. Risk identification includes:
Furthermore, risk estimation evaluates the likelihood of risks and their impacts. It then compares the level of risk against the risk acceptance criteria. The context establishment step defined the risk acceptance criteria. Then, the risk assessor can prioritise the list of risks to address the most serious risks first.
Risk treatment involves deciding on the proper risk mitigation strategy. Four responses to risk are possible:
Tolerating risk is the best option when the costs of treating the risk outweigh the benefits. This is often the case when the likelihood of the risk occurring is very small.
It will never be possible to make your organisation 100% secure against any threats to information security. The goal is to align your individual risk tolerance with the measures you take towards information security.
Establishing your own criteria for risk acceptance should take into account factors like:
Senior management then needs to approve the ISO 27005 risk assessment and treatment plan. Documentation of the ISO 27005 process can inform communication with stakeholders. Documentation of the work up to this point is very important. It lets auditors see the methods for identifying, assessing, and mitigating risk. It serves as a reference for future use.
Effective communication about the information security risk management process is critical. The people who will put the plan in place need to understand why its provisions are necessary. Decision-makers and other stakeholders can agree more easily on how to manage risk.
Communication about risk management must be ongoing. Organisations need a communication plan for emergencies as well as normal operations.
Risks can change suddenly and without warning. Continual monitoring is necessary. Monitoring helps an organisation quickly identify changes. The organisation can update the risk treatment plan as needed. Monitoring should include factors like:
Monitoring also checks whether the organisation's risk treatment plan is working properly. Information security risk management is an ongoing process that needs active engagement.
ISO 27005 can improve information security risk management for your organisation. Following ISO 27005 will help you develop a better information security management system. You can then follow ISO 27001 more easily.
Hear more about ISO 27005 risk management and its integral link to ISO 27001. Contact us to find out how the DataGuard ISO 27001 certification solution can help your organisation manage risks and comply with the latest industry standards for optimal security.