Risk Management Frameworks

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Course
Time
5 hours 25 minutes
Difficulty
Intermediate
CEU/CPE
6
Video Transcription
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>> Hi there Cybrary friends and welcome back to
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the HCISPP Certification course
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, Risk Management Frameworks.
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My name is Schlaine Hutchins,
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and I'll be your instructor today.
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In this video, we're going to
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discuss the exciting subject
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of risk management frameworks.
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We'll review at a very high level
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the NIST Four-Phase Process for
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risk management and touch on some other frameworks.
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I want to give a little detail
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around the NIST Four-Phase model
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for risk management from the NIST 839.
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The steps in the risk management process are
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not inherently sequential in nature.
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The steps are performed in different ways,
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depending on the particular tier where the step is
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applied and on prior activities
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related to each of the steps.
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What is consistent is the outputs or
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post-conditions from a particular risk management step.
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They directly impact one or
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more of the other steps in the process.
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[NOISE] Framing the risk
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establishes the context and provides
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a common perspective on
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how an organization manages risks.
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Its primary output is to
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produce a strategy that addresses how
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an organization intends to assess
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risk and respond to and monitor risk.
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The risk management strategy makes
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the specific assumptions, constraints,
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risk tolerances, and priorities or
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trade-offs used for making
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investment and operational decisions.
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The strategy also includes
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how risks will be managed
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by senior leaders and executives.
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The risk assessment includes threats and
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vulnerability identification and risk determination.
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Threat identification requires examination
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of threats sources and events.
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Identifying the threat capabilities,
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intentions, and targeting information
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from all available sources.
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Organizations with
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more established enterprise architectures
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and mature life cycle processes,
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have outputs that can be used to
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inform the risk assessment process.
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For example, within an organization
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that has an internal audit department,
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a regular review and monitoring of
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audit findings and the remediation activities,
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can be an input into the risk management process.
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If there's a particular area or finding that consistently
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has weaknesses in the control or lack of controls,
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that can identify a potential vulnerability.
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Organizations can employ a variety of
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approaches to determine the likelihood
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of threats exploiting vulnerabilities.
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Likelihood determinations can be based on
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either threat assumptions or actual threat information.
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For example, historical data on cyber attacks,
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or specific information on
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adversary capabilities in targeting.
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Risk response includes risk response identification,
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evaluation of alternatives, and
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risk response decision and risk response implementation.
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In addition to the risk assessment
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and risk framing steps,
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the risk response step can receive
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inputs from the risk monitoring step.
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For example, when an organization experiences a breach or
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compromise to their information systems
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or environments of operation,
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that require an immediate response
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to address the incident.
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A risk response can be risk acceptance, avoidance,
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mitigation, sharing,
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transfer, or a combination of the above.
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Lastly, in the process of risk monitoring,
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which includes a risk of monitoring
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strategy and risk monitoring itself.
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A risk management strategy,
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or risk monitoring strategy,
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includes the purpose, type,
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and frequency of monitoring activities.
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Determining the purpose directly impacts
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the means used to conduct the monitoring activities,
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and where monitoring occurs,
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such as at the risk management tier.
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A strategy also determines
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which type of monitoring will be employed,
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including approaches that rely on automation or will be
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procedural or manual and requires human intervention.
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Finally, a strategy determines
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the frequency that monitoring will occur.
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Areas that are typically included in risk monitoring,
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are monitoring for compliance
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with legal and regulatory requirements,
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internal policies and procedures
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in the mission and business requirements,
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or monitoring for effectiveness.
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This type of monitoring is used to
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determine if the implemented risk response measures
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have actually been effective in reducing
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the identified risk to the desired level.
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Failure to achieve desired levels of
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effectiveness may be an indication that
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the risk response measures that have been implemented
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incorrectly or are not operating as intended.
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Monitoring changes to information systems
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and environments of operations,
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is not linked directly to
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previous risk response measures,
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but is important to detect changes
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that may affect the risk to the operations,
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assets, or individuals.
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Other frameworks that you will hear
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about and see in the study materials,
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include those listed here,
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but it's not an exhaustive list.
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In my personal opinion,
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HITRUST is not a true framework.
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HITRUST combines various other frameworks.
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They've done a magnificent job of mapping
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all other frameworks such as NIST, COVEY,
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COSO, ITIL, and
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some regulatory requirements such as
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HIPAA and some other state requirements.
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In that mapping, they've broken out
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into various categories, and that's HITRUST.
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It is a very expensive process
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to perform and while you may
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conduct the self-assessment
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after purchasing a subscription,
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it can only be validated by hiring
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an external third-party CPA or auditing firm,
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who's been trained to conduct the assessments.
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It is based on the five-level maturity model,
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and you must achieve
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at least the maturity level of three in most areas with
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few corrective action plans for
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controls that require remediation.
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Again, this is just my personal opinion and
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not the opinion of anyone else at Cybrary,
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and that's all I'll say about that.
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Now FAIR, is a framework and not a life cycle.
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FAIR is a quantitative model for
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understanding, analyzing,
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and quantifying cyber risk and
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operational risk in financial terms.
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COSO identifies five areas of
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internal control necessary to meet
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the financial reporting and disclosure objectives.
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They include control environment, risk assessment,
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control activities,
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information and communication, and monitoring activities.
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Now, ITIL is not a framework,
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but it is the IT infrastructure library
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that's based on ISO 20000.
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The ISO 20000 standard is focused on service management.
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The thought is because risk
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can disrupt service delivery,
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there is some consideration of risk management,
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but not a risk management life cycle.
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In summary, we've talked about
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the exciting NIST Four-Phase Process for
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Risk Management and other risk management frameworks
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and approaches to risk management.
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Thank you for joining me,
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and I'll see you in the next video.
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