ISO 27001 risk management involves a systematic approach that aligns with the Information Security Management System (ISMS). The steps include:

1. Establish Context: Define the scope, objectives, and criteria for risk assessment, including the assets, threats, and vulnerabilities to be considered.

2. Risk Identification: Identify potential security risks to information assets, including both internal and external threats.

3. Risk Analysis and Evaluation: Assess the likelihood and impact of each identified risk. Prioritize based on risk level, which is determined by combining these factors.

4. Risk Treatment: Decide on actions to mitigate, transfer, avoid, or accept each risk. Implement controls as outlined in ISO 27001:2022 Annex A.

5. Risk Acceptance: Decide on acceptable levels of risk and ensure that remaining risks are aligned with business objectives.

6. Documentation and Communication: Document all findings, the risk assessment process, and the treatment plans. Communicate the results to relevant stakeholders.

7. Continuous Monitoring and Review: Regularly monitor risks, review the effectiveness of controls, and update risk assessments as part of ongoing ISMS maintenance.

Risk assessment process details:

The risk assessment process follows a structured approach to identifying, analyzing, and mitigating security risks. The key steps include:

1. Risk Identification
   • Identify information assets (e.g., customer data, financial systems, hardware).
   • Determine potential threats (e.g., cyberattacks, insider threats, physical damage).
   • Identify vulnerabilities (e.g., weak access controls, outdated software, lack of employee training).
2. Risk Analysis & Valuation
   • Assess the likelihood of a threat exploiting a vulnerability (rated from Highly Unlikely to Highly Likely).
   • Evaluate the impact on financial, operational, reputational, and compliance aspects (from Minimal to Catastrophic).
   • Calculate the risk level based on the combination of likelihood and impact.
3. Risk Mitigation & Decision Making
   • Assign a risk owner responsible for managing each identified risk.
   • Select appropriate controls (e.g., firewalls, encryption, staff training).
   • Compute the residual risk (risk left after implementing controls).
   • Decide on the risk treatment approach (Accept, Mitigate, Transfer, or Avoid).
4. Risk Monitoring & Review
   • Establish a reporting frequency to reassess risks periodically.
   • Continuously monitor changes in the threat landscape and update controls as needed.
   • Communicate risk status and treatment effectiveness to stakeholders.

This structured approach ensures organizations can proactively manage risks, comply with regulations, and strengthen cybersecurity defenses.

ISO 27001 Risk Assessment Process – Summary