How do you balance the cost and benefit of information security risk controls in your report?

1 Identify the risks

The first step is to identify the risks that your information system faces, such as cyberattacks, data breaches, natural disasters, human errors, or sabotage. You can use various methods, such as brainstorming, interviewing, surveying, or analyzing historical data, to gather information about the sources, scenarios, and consequences of potential risks. You should document the risks in a risk register, which is a table that summarizes the risk name, description, category, owner, and status.

2 Assess the risks

The next step is to assess the risks based on their likelihood and impact. Likelihood refers to how probable a risk event is to occur, while impact refers to how severe the damage or loss would be if the risk event occurs. You can use qualitative or quantitative methods, or a combination of both, to assign ratings or values to each risk. For example, you can use a scale of 1 to 5, where 1 is very low and 5 is very high, to rate the likelihood and impact of each risk. Then, you can multiply the likelihood and impact scores to get the risk level, which can range from 1 to 25. You should prioritize the risks based on their risk level, and focus on the ones that have the highest level.

3 Select the controls

The third step is to select the controls that can address the risks that you have identified and assessed. Controls can be preventive, detective, corrective, or compensating, depending on their purpose and function. For example, preventive controls aim to stop a risk event from happening, such as encryption, authentication, or firewall. Detective controls aim to discover a risk event when it happens, such as monitoring, logging, or auditing. Corrective controls aim to restore the normal operation after a risk event happens, such as backup, recovery, or patching. Compensating controls aim to provide an alternative way of achieving the same objective when the primary control is not available, such as manual procedures, redundancy, or contingency plans.

4 Evaluate the controls

The fourth step is to evaluate the controls based on their cost and benefit. Cost refers to the resources that you need to implement and maintain the controls, such as money, time, effort, or equipment. Benefit refers to the value that you gain from the controls, such as reduced risk level, improved performance, enhanced compliance, or increased customer satisfaction. You can use various methods, such as cost-benefit analysis, return on investment, or cost-effectiveness analysis, to compare the cost and benefit of each control. You should select the controls that have the highest benefit-cost ratio, which means that they provide the most value for the least cost.

5 Implement the controls

The fifth step is to implement the controls that you have selected and evaluated. You should follow a project management approach, which involves planning, executing, monitoring, and controlling the activities and resources that are required to implement the controls. You should also communicate with the stakeholders, such as management, users, customers, or vendors, who are affected by or involved in the implementation of the controls. You should document the progress and results of the implementation in a project report, which is a formal document that summarizes the objectives, scope, schedule, budget, quality, risks, issues, and outcomes of the project.

6 Review the controls

The sixth step is to review the controls that you have implemented. You should perform regular audits, tests, or reviews to check whether the controls are working as intended, whether they are meeting the objectives and expectations, and whether they are aligned with the current risk environment and business needs. You should also collect feedback, data, or metrics to measure the performance and effectiveness of the controls. You should document the findings and recommendations of the review in a risk assessment report, which is a formal document that analyzes the current state of the information system, identifies and assesses the risks and controls, and suggests improvements or changes.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?