Much of life is simply Risk Management, It is essential to survival of any organization even though it is not the primary goal, it is the bedrock of continued existence.
Risk Management consists of risk evaluation based on assets that need protection. In any transaction there are at least two points of view, that of each party to the transaction, For identity risk management we will be addressing the POV of the user and of the web site, also known (in the GDPR) as the Principal and the PII Controller.
This usage is measured in risk that is associated with the access of assets that is provided over the internet. When it is important to separate physical risk management from digital risk management the term Cyber or Cybersecurity Risk Management may be used.
Before Risk can be managed, it must be possible to determine the linkelihood of an event and the apply costs to determine if the risk is acceptable. The challenge is the Risk Assessment itself when not all of the factors are known or even constant. Still some estimate is required before a decision can be made.
- The Risk is typically measured by the likelihood of a breach times the cost of the breach.
- An alternate measure is to look at similar enterprises and measure the cost of breaches in those simply situations.
- Banking has in many ways the easiest measures as there is a history of losses by a range of categories so a measure of risk is actually fairly easy to gage, at least for old techniques. Even for new techniques the historical data can help to create a risk metric. For example Ross Anderson and his grad students have created an extensive inventory of cybercrime costs.
- It is important the for enterprise risk management the Board of Directors (or governance) are fully committed to the security of the enterprise.
- A good reference is for the World Economic Form Principles for Board Governance of Cyber Risk 2021-03-23.