ISO 27001: The Competitive Advantage in Information Security Risk Management
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In today’s interconnected world, businesses face various information security risks, including cyberattacks, data breaches, and intellectual property theft. These risks can result in reputational damage, financial loss, and legal liability. Organisations need robust information security practices in place to manage these risks effectively. This is where ISO 27001 comes in – a globally recognised standard for information security management which takes a risk-based approach.
By implementing ISO 27001, organisations can improve their information security posture and gain a competitive advantage. In this blog, we will explore how ISO 27001 provides a framework for managing information security risks and discuss how it can give organisations a competitive edge in risk management.
The Evolution of the Cybersecurity Risk Landscape
The cybersecurity risk landscape is an ongoing race, and the pace of change is now accelerating. As businesses continue investing in technology and adding more systems to their IT networks to improve customer experiences, facilitate remote work and create value, cyber adversaries increasingly leverage more sophisticated methods and tools to compromise these systems.
Gone are the days of lone hackers, with organised entities now employing integrated tools and capabilities, including artificial intelligence and machine learning. Small and midsize enterprises and governments now face the same cyber risks as large corporations. As a result, the scope of threats organisations must tackle expand exponentially, and no organisation is immune. Businesses must adopt a proactive and forward-thinking approach to mitigate this growing threat landscape.
The Critical Cyber Risks Facing Organisations
According to a recent cybersecurity trends report from McKinsey, the critical cyber risks organisations will face over the next three to five years will significantly impact organisations, crossing multiple technologies and falling into three key areas:
Data Everywhere
Firstly, businesses must contend with the growing demand for universal data and information platforms. Mobile platforms, remote work, and other changes depend on fast and widespread access to large datasets, increasing the likelihood of breaches. Web-hosting services will generate $183.18 billion by 2026, with enterprises responsible for storing, managing, and protecting this data. Cyberattacks targeting this expanded data access are rising, with SolarWinds and NotPetya being notable examples.
Emerging Technology
Cyber attackers now use advanced technologies such as AI and machine learning to launch increasingly sophisticated attacks. This multibillion-dollar enterprise has institutional hierarchies and R&D budgets, with the end-to-end attack life cycle reduced from weeks to days or even hours. Ransomware and phishing attacks have become more prevalent due to ransomware as a service and cryptocurrencies, with spikes during disruptions such as COVID-19. Companies must be vigilant and proactive against these evolving threats.
Regulatory Requirements
Lastly, businesses face ever-increasing regulatory requirements for cybersecurity capabilities, outpacing resources, knowledge, and talent. Many organisations lack cybersecurity expertise, and regulators increasingly focus on compliance requirements. There are now around 100 cross-border data flow regulations, and companies must meet additional data and reporting requirements from executive orders and mobile operating systems.
Companies must prioritise cybersecurity risk management by staying informed and adopting proactive measures to mitigate risks effectively and reduce business impact.
The ISO 27001 Framework
Adopting a framework is one of the most effective methods for businesses to tackle their cyber risk. The ISO 27001 framework provides a comprehensive set of best practices for information security management and is recognised globally.
The framework covers all aspects of information security, including; risk management, access control, network and web-based security, data backup and recovery, physical security, employee training and education, and monitoring and review. Fundamentally, ISO 27001 helps organisations ensure sensitive information’s confidentiality, integrity, and availability. And, should the worst happen, ensure business operations can continue with limited impact.
The ISO 27001 Framework & Risk Management
Within ISO 27001, clause 6 covers actions organisations must take to address information security risks. It’s one of the most critical parts of the standard because everything else you do to meet the requirements of ISO 27001 informs or revolves around this step.
The framework outlines precise requirements to help organisations identify and manage risks, including:
Risk identification: Identifying potential risks is the first step in risk management. Risks can stem from various sources, including information assets, internal/external issues (e.g., related to a function or the business plan), or risks associated with interested parties/stakeholders.
Risk analysis: After identifying potential risks, the next step is to assess their likelihood and impact (LI) to differentiate between low and high risks. This allows for prioritising investments and conducting reviews based on LI positioning. To ensure consistent implementation, it’s crucial to document what each position means. At ISMS.online, we use a 5 x 5 grid system for information security risk management, which includes a risk bank with popular risks and treatments to save time.
Risk evaluation: Based on the LI positioning, the evaluation stage helps prioritise investments where needed the most. The criteria range from very low to very high for likelihood and very low to the almost certain death of the business for impact. The 5 x 5 grid system ensures clarity and consistency in documenting risks.
Risk treatment: Once you have identified and evaluated the risks, the next step is to create a plan for risk treatment or response. This includes controlling and tolerating the risk internally, transferring the risk to a supplier, or terminating the risk entirely. ISO 27001 provides a set of control objectives in Annex A to consider in risk treatment, forming the backbone of the Statement of Applicability.
Monitor and review the risk: After creating a plan for risk treatment, monitoring and reviewing the risks regularly is crucial. This can be achieved through staff engagement and awareness, including regular feedback sessions with appropriate staff. Each risk should have an owner, and the “3 lines of defence” model can be used to delegate ownership to the front line.
Organisations should conduct at least annual management reviews, and more regular checks are encouraged. The risk owner should review the assessment based on its grid position, with more frequent reviews for high likelihood and high-impact risks. Clause ten within ISO 27001 regarding internal audits and other mechanisms can be associated with the strategic risk review process for continuous improvement.
The ISO 27001 framework also requires organisations to focus on other critical areas of risk:
Third-Party Risk Management
Organisations must ensure that their third-party partners have proper risk management measures in place. These measures should cover various aspects such as security, privacy, compliance, and availability. Third-party partners must also be fully informed of and comply with the organisation’s policies, procedures, and standards.
Organisations should conduct regular reviews and audits of their third-party partners to ensure compliance with security policies. Additionally, they should establish a protocol for reporting and responding to any security incidents resulting from third parties activities.
Organisations must take responsibility for securing the return or disposal of all data and information assets when ending contracts or relationships with third parties. This is critical to maintaining data privacy and security.
Incident Management
Organisations must have a well-defined process for logging security incidents and a procedure for thoroughly investigating and documenting investigation results. A clear policy for incident logging and investigation and a method for accurately recording the investigation’s findings are crucial.
The policy must also cover the handling of evidence, the escalation of incidents, and communication of the incident to all relevant stakeholders. Additionally, the policy must enable the organisation to monitor and quantify incidents’ types, volumes, and costs and identify any severe or recurring incidents and their underlying causes.
By following these guidelines, organisations can update their risk assessment and implement additional controls to reduce the likelihood or severity of future similar incidents.
Staff Training
To protect their data and networks from cyber threats, organisations must ensure that their employees understand their responsibilities regarding cyber security.
One way to achieve this is by empowering staff to prevent human error and recognise the importance of cyber security. Appropriate cybersecurity training programs should also be developed and implemented alongside clear policies and procedures that define expected employee behaviours.
In addition, incorporating cyber security into daily operations and establishing a culture of cyber security can help create a comfortable and empowered environment in which staff feel free to raise cyber security concerns. By taking these steps, organisations can help ensure their employees are prepared to protect against cyber threats and understand their role in keeping their data and networks secure.
The ISO 27001 Cyber Risk Competitive Advantage
Building an information security foundation based on ISO 27001 speaks volumes about a business’s values and risk approach. By demonstrating a commitment to information security, companies communicate to their customers, partners, and stakeholders that they take their responsibilities seriously.
Compliance with ISO 27001 shows that a business is proactive in protecting sensitive information and dedicated to maintaining the highest security standards. This instils confidence in customers, who trust that their data gets handled securely and responsibly.
Furthermore, compliance with ISO 27001 demonstrates that a business is up-to-date with the latest security standards and regulations, which is becoming increasingly important in today’s digital world. By following best practices and continuously improving security, businesses can avoid potential threats and protect their information assets more effectively.
Overall, ISO 27001 provides a comprehensive framework for managing cyber risk, covering everything from risk assessment to policy development to employee training and awareness. By adopting this framework, organisations can better understand and manage their information security risks, helping to protect their critical assets from cyber threats.
Strengthen Your Information Security Today
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