ISO/IEC 27005 is a key cybersecurity standard offering a structured, systematic approach to managing information security risks. ISO 27005 is essential for organisations aiming to safeguard sensitive data, comply with ISO 27001, and strengthen overall cybersecurity. Risk Identification is the first step in cybersecurity risk management, aimed at recognising potential threats, vulnerabilities, and impacts on key assets such as data, networks, and systems. Cybersecurity risk identification involves mapping essential assets and assessing risks like cyberattacks, insider misuse, system failures, and natural disasters. An analysis of each asset is conducted for its specific vulnerabilities, such as outdated software, weak access controls, or unpatched systems. This process produces a categorised list of potential risks, organised by impact and likelihood, providing a foundation for further analysis, and ensuring that the security strategy targets the organisation’s specific risk landscape.
Risk Analysis is the second step in cybersecurity risk management, where identified risks are assessed to determine their likelihood and potential impact on an organisation. In the risk analysis phase, each risk is evaluated for the probability of occurrence and the severity of its impact if realised. Organisations may use qualitative or quantitative methods, such as statistical data, historical incidents, or expert judgment, to rank risks from low to high priority. This ranking helps prioritise which risks need immediate attention, and which can be monitored. By thoroughly analysing each risk, organisations gain a clearer picture of their threat landscape, allowing them to allocate resources effectively and focus on mitigating the most critical risks.
Risk Evaluation is the phase where an organisation decides which risks require action based on their likelihood, potential impact, and the organisation’s risk tolerance. During this step, the previously analysed risks are compared against acceptable risk thresholds, which reflect the organisation’s capacity and willingness to manage specific risks. Risks that exceed these thresholds are prioritised for treatment, while lower-level risks may be accepted, monitored, or deferred. This evaluation process ensures that resources are directed toward the most significant threats, aligning risk management efforts with business objectives and organisational resilience.
Risk Treatment is the phase where an organisation selects and implements actions to address identified risks. Depending on the priority and nature of each risk, treatment options may include reducing the risk by applying security controls, transferring it through mechanisms like insurance, avoiding it by changing business practices, or accepting it if it falls within the organisation’s risk tolerance. Common treatment measures include implementing firewalls, encryption, access controls, and employee training programs. The goal of Risk Treatment is to apply the most effective and practical measures to mitigate high-priority risks, ensuring the organisation’s security posture aligns with its risk appetite and resource availability.
Risk Monitoring and Review is the ongoing process of tracking identified risks, assessing the effectiveness of risk treatments, and adapting to changes in the threat landscape. This phase involves regular evaluations to ensure that controls remain effective and relevant as new vulnerabilities or threats emerge. Organisations continuously monitor risk indicators, conduct audits, and perform periodic reviews to detect shifts in risk levels or control performance. By maintaining a cycle of monitoring and review, the organisation can promptly adjust its security measures, stay responsive to evolving risks, and ensure long-term resilience in its cybersecurity strategy.
Risk Communication and Documentation promotes transparency and accountability in cybersecurity risk management. It involves sharing identified risks and treatment strategies with stakeholders while maintaining thorough documentation to support compliance and inform future decisions. This focus enhances collaboration and integrates risk management across the organisation.