Step By Step Risk Management Under ISO27001

1. Define the Risk Management Framework

Establish a consistent methodology for risk management across the organization. Decide whether to use qualitative or quantitative risk assessment, define risk scales, risk appetite, and the criteria for evaluating risks. This ensures uniformity in how risks are identified and treated throughout the organization.

2. Identify Information Assets and Risks

Compile a comprehensive list of information assets (data, hardware, software, processes) and identify potential risks affecting their confidentiality, integrity, and availability. Risks can arise from internal or external threats, vulnerabilities, or stakeholder-related issues.

3. Analyze Risks

For each identified risk, assess the likelihood of occurrence and the potential impact on the organization. This involves understanding threats and vulnerabilities related to each asset. The analysis helps distinguish between low and high-priority risks.

4. Evaluate Risks

Prioritize risks by combining their likelihood and impact scores, often using a risk matrix (e.g., a 5x5 grid). Compare these scores against your organization’s risk acceptance criteria to decide which risks require treatment and which can be accepted.

5. Select Risk Treatment Options

Determine how to address each risk based on ISO 27001’s four possible actions: - Treat the risk by applying security controls to reduce it - Avoid the risk by eliminating the cause or circumstance - Transfer the risk to a third party (e.g., insurance, outsourcing) - Accept the risk if its cost outweighs the potential damage.

6. Develop a Risk Treatment Plan

Document the selected treatment measures, assign risk owners responsible for implementation and approval, and outline timelines and resources needed. This plan is a critical document for certification audits.

7. Create the Statement of Applicability (SoA)

List all ISO 27001 controls (from Annex A) that are relevant to your organization, explain why each control is included or excluded, and describe the implementation status. The SoA links your risk assessment to actual controls in place.

8. Implement Controls and Monitor Risks

Apply the chosen controls to mitigate risks and continuously monitor their effectiveness. Regularly review the risk environment to detect new risks or changes in existing risks.

9. Review and Update the Risk Management Process

Conduct periodic reviews, internal audits, and updates to the risk assessment and treatment plans to reflect organizational changes, emerging threats, or lessons learned. This ensures the ISMS remains effective and compliant.

10. Document and Report

Maintain comprehensive documentation of the risk assessment process, treatment decisions, risk registers, and reports. These documents support audits, certification, and continuous improvement efforts.

By following these steps, organizations can systematically manage information security risks in line with ISO 27001, ensuring a robust and compliant Information Security Management System (ISMS).