What is ISO27001? Understanding Risk Maturity Standards

The Airius Risk Maturity Knowledgebase is intended to give you a snapshot of those things in the world affecting information risk for April 7th through April 13th, 2023.

ISO/IEC 27001 is an international standard that provides a framework for managing information security risks and protecting sensitive information1. It was developed to help organizations of any size or industry protect their information in a systematic and cost-effective way by adopting an Information Security Management System (ISMS). The standard was originally published jointly by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC) in 2005, revised in 2013, and again most recently in 2022.

An ISMS is a systematic approach to managing sensitive company information so that it remains secure. It includes people, processes, and IT systems by applying a risk management process and gives confidence to interested parties that risks are adequately managed.

Why is the ISO27001 important for business?

ISO/IEC 27001 is a standard that specifies requirements for an information security management system (ISMS). It provides a systematic approach to managing sensitive company information so that it remains secure.

ISO 27001 compliance is important for businesses because it demonstrates to customers that they have a robust Information Security Management System (ISMS) in place and are constantly working to protect all information in their company. It can also help businesses avoid financial costs associated with data breaches. Achieving compliance and certification under ISO 27001 can provide significant benefits in today’s ever-evolving digital landscape.

How does ISO27001 compliance demonstrate risk maturity?

ISO 27001 is an international standard that outlines the requirements for an information security management system (ISMS). It provides a systematic approach to managing sensitive company information so that it remains secure. The standard requires organizations to identify risks and implement controls to manage or reduce them.

ISO 27001 compliance demonstrates risk maturity because it requires organizations to assess their risks and implement controls based on their risk assessment. This means that organizations that are ISO 27001 compliant have a better understanding of their risks and have implemented controls to manage them effectively.

What is an ISMS?

An Information Security Management System (ISMS) is a set of policies and procedures for systematically managing an organization’s sensitive data. The goal of an ISMS is to minimize risk and ensure business continuity by proactively limiting the impact of a security breach. An ISMS can help small, medium, and large businesses in any sector keep information assets secure.

What are some common ISMS frameworks?

There are different ISMS frameworks available, such as ISO 27001, NIST SP 800-53, COBIT, and PCI DSS. ISO 27001 is a leader in information security, but other frameworks offer valuable guidance as well. These other frameworks often borrow from ISO 27001 or other industry-specific guidelines. ITIL, the widely adopted service management framework, has a dedicated component called Information Security Management (ISM). COBIT, another IT-focused framework, spends significant time on how asset management and configuration management are foundational to information security as well as nearly every other ITSM function—even those unrelated to INFOSEC.

What are some benefits of ISO 27001 compliance?

There are several benefits of ISO 27001 compliance and certification. Here are some of them:

Protects your reputation from security threats
Helps you avoid regulatory fines
Improves your structure and focus
Reduces the need for frequent audits
Demonstrates to stakeholders that you take information security seriously
Helps you win new business and enhance your reputation with existing clients and customers

What is the ISO27001 Standard?

ISO/IEC 27001 is an international standard that provides a framework for an Information Security Management System (ISMS). It was developed to help organizations of any size or any industry protect their information in a systematic and cost-effective way. The standard specifies requirements for establishing, implementing, maintaining, and continually improving an ISMS.

What are the parts of the ISO27001 standard?

The first part of ISO 27001 standard consists of 11 clauses beginning with clause 0 extending to clause 10.

Clause 0. Introduction — Describes the process for systematically managing information risks

Clause 1. Scope — Specifies generic ISMS requirements suitable for organizations of any type, size or nature

Clause 2. Normative references — Lists all standards referenced in ISO 27001

Clause 3. Terms and definitions — Defines key terms used in ISO 27001

Clause 4. Context of the organization — Requires you to consider internal and external issues that affect your ISMS

Clause 5. Leadership — Requires top management to demonstrate leadership and commitment to the ISMS

Clause 6. Planning — Requires you to plan how you will address risks and opportunities related to your ISMS

Clause 7. Support — Requires you to provide resources, competence, awareness, communication, and documented information for your ISMS

Clause 8. Operation — Requires you to implement and control your ISMS processes

Clause 9. Performance evaluation — Requires you to monitor, measure, analyze, evaluate, audit, review, and improve your ISMS

Clause 10. Improvement — Requires you to continually improve your ISMS.

The second part of ISO 27001 standard is called Annex A, which provides a framework composed of 114 controls that forms the basis of your Statement of Applicability (SoA).

A.5. Information security policies - This category is about aligning policies with the company’s information security practices.

A.6. Organization of information security - This category is about defining roles and responsibilities for information security.

A.7. Human resource security - This category is about ensuring that employees understand their responsibilities and are suitable for their roles.

A.8. Asset management - This category is about identifying and classifying assets and ensuring that they are appropriately protected.

A.9. Access control - This category is about ensuring that access to information and systems is controlled and monitored.

A.10. Cryptography - This category is about ensuring that cryptographic techniques are used to protect the confidentiality, authenticity, and integrity of information.

A.11. Physical and environmental security - This category is about ensuring that physical and environmental risks are identified and managed appropriately.

A.12. Operations security - This category is about ensuring that operational procedures are in place to protect information processing facilities

A.13. Communications security - This category is about ensuring that communications networks are secure.

A.14. System acquisition, development and maintenance - This category is about ensuring that information security requirements are included in system development processes.

A.15. Supplier relationships - This category is about ensuring that suppliers understand their responsibilities for information security.

A.16. Information security incident management - This category is about ensuring that there are procedures in place to detect, report, and respond to information security incidents.

A.17. Information security aspects of business continuity management - This category is about ensuring that there are procedures in place to ensure the continuity of critical business processes in the event of an information security incident.

How does a company get ISO27001 certified?

To achieve ISO 27001 certification, an organization must first develop and implement an ISMS that meets all the requirements of the Standard. Once the ISMS is in place, the organization can then register for certification with an accredited certification body. To get ISO 27001 certification, you’ll need to prove to your auditor that you’ve established effective policies and controls and that they’re functioning as required by the ISO 27001 standard. Collecting and organizing all of this evidence can be extremely time-consuming. You must attend a course and pass its final exam to become ISO 27001 certified.

Summary - Why is ISO27001 certification so important?

ISO/IEC 27001 certification is important because it proves to an organization’s customers and stakeholders that it safeguards their data. Data security is a primary concern for many shareholders, and acquiring the ISO 27001 certification can enhance the brand credibility of an organization. The certification is applicable to businesses of all sizes and ensures that organizations are identifying and managing risks effectively, consistently, and measurably. The ability to prove your commitment to security with a highly respected third-party certification like ISO 27001 can be a powerful advantage against non-compliant competitors.

In The News

World
- President Donald Trump was indicted in New York City, NY, USA, this week. Political choices may increase risk to an organization over time. We will explore next week.
AI
- ChatGPT 4 was officially announced on March 13, 2023. It has limited availability currently.
- Microsoft began rolling out a major overhaul to Bing that included a new chatbot feature based on OpenAI's GPT-4 on February 7th, 2023.
- ChatGPT could increase 'threat vector' for cyberattacks and misinformation, experts warn: 'Deepfake generator'

Notable Mentions

We are amazed at the number of submissions we have gotten to date, but even more so, we are incredibly grateful to over 150 core contributors who have devoted their time and resources to helping us provide up-to-date information. Send your stories and announcements to knowledgebase@airius.com.

The Risk Maturity Knowledgebase restarts an effort that we began in 2007. With hundreds of volunteers, interns and staff members at the time, along with over 60 weekly translations, our predecessor became the standard for GPL and open source security information.

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If we can help you with risk management, ISO 27001 compliance, an emergency or you just need guidance with INFOSEC, please reach out to us.

Coming Soon

AI engines
PCI DSS
HIPAA Compliance
SOC2
Political choices and reputational risk

Copyright and Attribution Statement

Ernest M. Park, Airius, LLC, 2023

License

http://creativecommons.org/licenses/by/3.0/

References and Credits

https://advisera.com/27001academy/iso-27001-certification/
https://advisera.com/27001academy/what-is-iso-27001/
https://datagraphic.co.uk/news/iso27001-benefits/
https://en.wikipedia.org/wiki/ISO/IEC_27001
https://isocouncil.com.au/what-is-iso-27001/
https://learn.microsoft.com/en-us/compliance/regulatory/offering-iso-27001
https://secureframe.com/blog/iso-27001-certification-process
https://secureframe.com/hub/iso-27001/why-is-iso-27001-important
https://www.dataguard.co.uk/blog/benefits-of-iso-27001
https://www.forbes.com/sites/forbestechcouncil/2022/03/23/iso-27001-certification-what-it-is-and-why-you-need-it/
https://www.iso.org/isoiec-27001-information-security.html
https://www.itgovernance.co.uk/iso27001-benefits
https://www.itgovernance.co.uk/iso27001-certification
https://www.itgovernance.eu/blog/en/benefits-of-iso-27001-certification
https://zcybersecurity.com/get-iso-27001-certification-steps-process/

Artificial Intelligence and Risk Management

Written by Ernest P

2/8/2023

Artificial Intelligence (AI) is revolutionizing the way businesses operate, making decision-making and processes more efficient. However, with these advancements comes the need to ensure that AI is used in a responsible and ethical manner. In this blog post, we will discuss the impact of AI on risk management, compliance, regulations, and ongoing protections.

AI and Risk Management

One of the key challenges of AI is that it operates beyond human control, making it difficult to understand the underlying mechanisms and potential consequences of AI systems. To mitigate these risks, companies are turning to risk management strategies that focus on understanding AI systems and monitoring their performance. This involves conducting regular risk assessments, implementing controls to prevent potential harm, and developing contingency plans to respond to incidents.

Vendors Using AI to Improve Products

In addition to using AI for risk management, vendors are also using AI to improve their products. Companies like Darktrace are utilizing AI to detect and respond to cyber threats in real-time, making their products more secure and effective. By incorporating AI into their offerings, vendors can improve the performance and security of their products, providing businesses with greater peace of mind and increased efficiency.

Compliance and Regulations

The use of AI also brings about regulatory and compliance concerns. Governments around the world are implementing regulations aimed at ensuring that AI is used responsibly, and that it does not harm individuals or compromise sensitive information. For example, in Europe, the General Data Protection Regulation (GDPR) governs the use of personal data, while the United States has enacted the Algorithmic Accountability Act to ensure that AI systems are transparent and accountable.

Ongoing Protections

Protecting individuals and ensuring the responsible use of AI is an ongoing process that requires continued monitoring and oversight. Companies must remain vigilant and proactive in monitoring AI systems for potential risks and vulnerabilities. They should also regularly assess their AI policies and procedures to ensure that they are up-to-date and effective in mitigating potential harm. Additionally, companies must prioritize the development of responsible AI practices and invest in training and education for their employees.

In conclusion, AI is changing the world we live in, and it is critical that it is used in a responsible and ethical manner. Through risk management, compliance with regulations, and ongoing protections, we can ensure that AI is used to benefit society and not harm it. By staying informed and proactive, businesses can make the most of the benefits of AI while minimizing potential risks and ensuring that it is used in a responsible and ethical manner.

What is Integrated Risk Management (IRM)?

Written by Cassie

1/25/2023

Various business setups and different-sized companies often resolve to implement integrated risk management to secure their vital functions. But what exactly does IRM mean in simple terms?

IRM meaning

Integrated risk management is a group of essential processes by special departments or service providers to curb existing risks and prevent others from surfacing and potentially harming the organization. It is an approach to protect the workings of a business and ensure its smooth running.

IRM encompasses all business functions, including those not typically associated with risk management, such as human resources and public relations. However, as businesses have become heavily reliant on IT in recent years, IRM is primarily concerned with hands-on risk management, including implementing and monitoring systems and technological controls.

The term IRM is a relatively recent one. It was introduced in 2017 to address a more complex risk environment caused by increased digital processes, globalization, and a greater reliance on third parties.

Hence, integrated risk management focuses on providing tight cyber security, maintaining the organization's and its employees' privacy, assisting HR departments, and solving and preventing compliance and regulatory issues.

Are IRM and GRC the same?

Integrated risk management and governance, risk, and compliance have several factors in common, and these two terms may be mistaken for each other. Both these fields are different. GRC provides the foundation of an IRM strategy, and both have distinct core functions within a business. IRM acts as the umbrella risk management strategy, and GRC functions are more specific that aim to improve the risk profile. GRC's approach focuses on technical or operational downsides, while IRM provides a broader focus and includes a comprehensive overview of tactics and strategy, including uptrend opportunities and potential strategic risks.

What does “at risk” mean?

Every organization faces multiple risks in the form of unanticipated, compromising, and damaging events, which can cause serious money loss, leak of significant classified info, or even force it to shut down. Financial non-transparencies, legal liabilities, tech issues, strategic management errors, logistic problems, accidents, and natural disasters are all sources of risk.

Being at risk means facing a negative impact or having to deal with a threat. The more vulnerable an asset is, the more “at risk” it is. However, all assets could face threats from within or outside the company.

Risk Categories

Risk can be grouped into these four different categories, according to the Committee of Sponsoring Organizations of the Treadway Commission (COSO):

strategic risk (e.g., reputation, customer relations, technical innovations);
financial and reporting risk (e.g., market, tax, credit);
compliance and governance risk (e.g., ethics, regulatory, international trade, privacy);
operational risk (e.g., IT security and privacy, supply chain, labor issues, natural disasters).

A business may also classify its risks into these four main corporate risks: people risks, facility risks, process risks, and technology risks.

IRM benefits

Adopting an integrated risk management strategy instead of a limited-scope approach can provide several advantages. Some of these benefits are listed below:

Better Risk Management

IRM helps to create a more realistic picture of risk analysis, which helps organizational leaders make better decisions. Risks can be identified and effectively communicated between business and IT teams.

A Broader Range of Options

Integrated risk management strategies target all possibilities related to each business strategy facet rather than just minimizing the drawbacks. Opportunities to capitalize on potential upsides may emerge due to a more thorough evaluation of each business outcome. A thorough evaluation of every business process results in better opportunities and potential future projects.

Increased Awareness

Risk awareness becomes part of the corporate culture. Implementing IRM strategies will cause the employees of an organization to perceive risk as a natural element of business operations. They will develop a clear sense of risk management over time, eventually leading to a healthier corporate environment.

What do IRM service providers do?

A business may decide to depend on an in-house risk department or may consider outsourcing IRM tasks to experienced service providers. Companies are actually opting for the second option, as it is more convenient for them to hire experts rather than train their employees.

Skilled IRM firms develop technologies and offer services that cover areas such as risk maturity evaluation, data breach, compliance, and regulatory issues, secure software development lifecycle, security testing, human resources and background checks, and IT cloud strategy and implementation. Since they are in the risk business, they are well informed of the latest risk that threatens companies; hence they provide guaranteed risk management.

What are the key steps of an IRM program?

An effective integrated risk management program consists of four main parts. These are listed below in the correct sequence:

Objectives

Setting measurable primary and secondary objectives is the first step in implementing an integrated risk management strategy. These objectives should be comprehensive with clear descriptions.

Identification

Assets, opportunities, and risks should be identified and monitored. All relevant data should be saved for systematic analysis and assessment.

Analysis

Risk factors should be identified and studied both separately and as a whole group. They must be evaluated because of the following points: why they exist, their impact, how to prioritize them, and their effect on the company’s risk appetite.

Actions

Now we come to the mitigation part, which consists of risk management activities. A detailed plan of action is designed to curb potential risks.

Specialized IRM tools and service providers aid in running this framework smoothly while generating an overview of relevant insights.

What would happen if IRM strategies were not implemented?

Companies require strong integrated risk management programs as existing risks become more complex, and new risks emerge. A lack of understanding of risks and their potential consequences can impede decision-making and harm an organization's business performance.

A business could collapse if it does not properly assess, mitigate, and prevent business risks. They might lose market share if they fail to foresee the risks of shifting circumstances. On the contrary, if they pay attention to the risks associated with growth, they could gain a significant amount of investment money or at least save the current budget.

Moreover, failure to match compliance and regulatory standards may cause an organization to face serious lawsuits. Weak or no IRM may also result in a lack of transparency within and outside, leading to serious threats, such as corruption, cyber-attacks, and other sabotaging activities.

Being constantly at risk and dealing with compromised operations is not a favorite status for any organization. Thus, choosing the perfect integrated risk management program and implementing it signifies corporate farsightedness and flawless driving strategies, eventually leading to numerous inspirational success stories.

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