The Cyber Security Review | Thursday, November 03, 2022
ISACA has released two new resources that offer guidance in both areas: the Using Risk Tolerance to Support Enterprise Strategy white paper and Risk Scenarios Toolkit.
FREMONT, CA:Understanding risk appetite and tolerance is the first step in managing the many different types of risk that need to be addressed in an organisation. The Using Risk Tolerance to Support Enterprise Strategy white paper and the Risk Scenarios Toolkit are two new tools from ISACA that help in both of these areas.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
The white paper, Using Risk Tolerance to Support Enterprise Strategy, looks at the definitions of risk appetite, risk tolerance, and risk capacity for management as well as risk practitioners. In addition to exploring the range of tolerance and the usage of tolerance limits and triggers, it contrasts risk appetite with risk tolerance. It also provides instructions on creating a framework for risk tolerance, using risk tolerance metrics while making decisions, and tracking, reporting, and managing risk tolerance.
The publication outlines several key benefits of risk tolerance, including:
Gives the conversation structure and makes it clear what is acceptable. Increases the process' openness, giving stakeholders a greater understanding of the company's risk position. Assists the board of directors in defining acceptable levels of risk tolerance. Supports the enterprise's most important risk information being communicated as it works to achieve its strategic goals.
Many people interchangeably use terms connected to risk, which can confuse stakeholders and cause inconsistent risk management initiatives to be implemented, Paul Phillips, director of event content development for ISACA, explains. Risk practitioners, boards of directors, and managers must all share the same understanding of risk tolerance, risk appetite, and risk capacity to effectively perform their respective key roles in risk management and make educated decisions about balancing risk with achieving business objectives.
For risk management practitioners, a solid understanding of risk tolerance is essential. With 87 sample risk scenario templates, ISACA's Risk Scenarios Toolkit is a useful resource for helping organisations analyse and structure information and technology (I&T) risk. The templates address types of risk, attributes needed to assess and respond to risk, the extent or size, controls connected to risk, and key risk indicators. They are offered as Word documents that users can modify to meet their specific needs.
Critical application software failures, an undocumented enterprise architecture, a malicious insider, poor master data management, and a pandemic outbreak are a few risk scenarios included in the toolkit.
According to Lisa Young, senior metrics engineer at Netflix and one of the key developers of the Risk Scenarios Toolkit, detailed risk scenarios can compile and organise crucial information used to communicate in the risk management process among various stakeholders to align plans with business objectives. They can be useful for assisting participants from various teams and leadership levels in understanding a particular risk and its potential business repercussions.
More in News