Risk Management Process according to ISO 31000

Questions and Answers

Which of the following is NOT a step in the risk management process outlined by ISO 31000:2018?

Developing a detailed financial budget for risk mitigation. (correct)

Analyzing risks based on impact and likelihood.

Establishing the scope, context, and risk criteria.

Identifying and documenting risks.

What is the primary purpose of risk treatment within the context of ISO 31000?

Prioritizing risks based on their severity and likelihood.

Evaluating the financial impact of identified risks.

Developing a detailed plan for responding to identified risks. (correct)

Eliminating all risks to ensure complete certainty in achieving objectives.

According to ISO 31000, which of these factors is NOT considered in determining the severity of a risk?

Timeline for potential risk occurrence.

Impact on achieving objectives.

Cost of mitigating the risk. (correct)

Likelihood of occurrence.

What is the primary difference between ISO 31000 and ISO 18128?

ISO 31000 is a general risk management standard, while ISO 18128 focuses specifically on risks related to records and information management. Signup and view all the answers

Which of the following is a key aspect of risk monitoring and reviewing within the risk management process?

Identifying new or emerging risks. Signup and view all the answers

What is the primary benefit of using ISO 31000:2018 for risk assessment?

It offers a standardized approach to risk management, ensuring consistency and effectiveness. Signup and view all the answers

Which of the following statements best describes the relationship between risk appetite and risk tolerance?

Risk appetite refers to the level of risk an organization is willing to take, while risk tolerance defines the acceptable deviation from the risk appetite. Signup and view all the answers

How does ISO 18128:2024 contribute to the overall risk management process outlined by ISO 31000?

It provides specific guidance on assessing and mitigating risks related to records and information management. Signup and view all the answers

What is one of the records-related risks that can compromise the authenticity of records?

Unmonitored activities of departing employees Signup and view all the answers

Which type of risk is related to records classification, records retention, and records storage?

Records control risk Signup and view all the answers

What is the estimated GDPR fine that Tesla could potentially face due to the data breach?

$3.3 billion Signup and view all the answers

What is one of the steps OU Health could have taken to protect patient data from being exposed?

Encrypting the laptop Signup and view all the answers

What type of risk is associated with unauthorized physical access, malicious code, and device attacks?

Technology risk Signup and view all the answers

What is the estimated damage incurred by Progressive Software due to the Zero-day vulnerability in their file transfer application?

$15 billion Signup and view all the answers

What reflects an organization's attitude toward risk?

Risk tolerance Signup and view all the answers

Why is it important to monitor the activities of soon-to-depart employees?

More than one in four departing employees steal data when leaving Signup and view all the answers

What is one of the measures organizations can take to prevent data breaches in cloud storage?

Implementing multi-factor authentication Signup and view all the answers

What is the primary purpose of risk assessment?

To evaluate and prioritize risks Signup and view all the answers

An organization's risk capacity is best described as:

The amount of risk the organization can absorb without jeopardizing its ability to achieve its goals. Signup and view all the answers

According to the passage, what is the primary benefit of using a risk assessment matrix?

It allows for the prioritization of risks. Signup and view all the answers

Which of the following is NOT a type of risk that should be considered when developing a risk mitigation plan?

Operational risks Signup and view all the answers

According to the passage, what is the primary purpose of risk mitigation?

To reduce risk to an acceptable level. Signup and view all the answers

Which of the following is NOT a characteristic of business information that should be ensured when using cloud services, according to the National Archives of Australia?

Confidentiality Signup and view all the answers

Which of the following is a key question that should be addressed in a cloud service contract, according to the Checklist for Cloud Service Contracts?

What are the procedures for restoring data following a service outage? Signup and view all the answers

What is the relationship between an organization's risk culture and its risk management plan?

The risk culture and risk management plan are mutually reinforcing. Signup and view all the answers

Which of the following is a key consideration when developing a risk management plan for cloud computing?

All of the above Signup and view all the answers

According to the passage, what is the primary driver of conduct risk?

The actions of a firm or individual that lead to consumer/investor detriment. Signup and view all the answers

Which of the following best describes the relationship between risk capacity and risk tolerance?

Risk capacity is a measure of the organization's ability to withstand losses, while risk tolerance is the level of risk the organization is willing to accept. Signup and view all the answers

What is the primary purpose of using checksums during data transfer?

To ensure data integrity and detect corruption Signup and view all the answers

What is the primary concern regarding data location and cross-border data flows?

Ensuring metadata are stored in the same location as the data Signup and view all the answers

What is the primary reason for having a data retention and disposition schedule?

To ensure data is destroyed in compliance with regulatory requirements Signup and view all the answers

What should happen to your data in the event of a contract termination?

The data is transferred to another provider of your choice Signup and view all the answers

What should happen in the event of a security breach or system malfunction?

You should be notified immediately Signup and view all the answers

Study Notes

Risk Management Overview

Organizations face various internal and external factors that introduce uncertainty, referred to as risk.
Risk management is essential to navigate uncertainties in achieving organizational objectives.

Risk Management Process (ISO 31000:2018)

Establish scope, context, and risk criteria to assess risk appetites and tolerances.
Identify and document risks, considering both positive and negative impacts on objectives.
Analyze risks based on their potential impact and likelihood to determine severity.
Evaluate risks to assess tolerability and prioritize which require treatment.
Implement ongoing risk treatment actions and engage stakeholders in communication.
Continuously monitor and review the risk management process to identify new risks.

Risk Assessment

Comprises risk identification, analysis, and evaluation.
ISO 31000 serves as a general standard for risk management practices.

Specific Risk Guidelines

ISO 18128:2024 focuses on identifying and managing risks related to records management.
Highlights risks that could compromise the authenticity, integrity, and security of records.

Categories of Risk Identification (ARMA)

Administrative Risks: Linked to the management of records and information management (RIM) programs. Employee transitions can expose risks. High data theft rates among departing employees.
Records Control Risks: Concern classification, retention, and storage of records. Example includes a major data breach at Tesla affecting 75,000 individuals due to failure in revoking access.
Legal/Regulatory Risks: Arise from insufficient controls over mobile devices, resulting in breaches like the OU Health incident, where patient data was compromised due to a stolen laptop.
Technology Risks: Associated with information security vulnerabilities, such as the MOVEit Transfer breach affecting 94 million users and causing billions in damages.

Risk Assessment Matrix

Analyzes and evaluates identified risks to determine risk tolerance and capacity for assumption.
Level of risk is calculated by multiplying impact severity by event likelihood.
Events are categorized for appropriate risk action responses. Immediate actions are prioritized for high-risk threats.

Human Factors in Risk Management

Employee behavior significantly influences risk levels in organizations.
Establishing a sound risk culture is vital to align values and beliefs about risk across the organization.

Risk Mitigation Strategies

Focus on prioritizing and implementing controls to reduce risk through a structured risk management process.
Administrative, records control, legal, and technology risks are distinct areas for targeted mitigation strategies.
Continuous monitoring of the external environment for new risks is crucial for adapting risk management plans.

Cloud Computing Risks and Benefits

Offers scalability and flexibility but poses risks like data breaches.
Contractual guidelines for cloud services should ensure the security and reliability of managed data.

Checklist for Cloud Service Contracts

Important areas to evaluate in cloud services include:
- Agreement conditions and suspension circumstances.
- Data ownership rights during storage and transmission.
- Procedures for data restoration after outages.
- File integrity checks during data transfers.
- Compliance with data destruction and retention policies.
- Notification procedures for security breaches.
- Knowledge of data locations and cross-border considerations.
- Data transfer protocols upon contract termination.

Conclusion

Risk management is critical for safeguarding organizational objectives against uncertainties.
A structured approach using ISO standards enhances risk identification, evaluation, and mitigation.

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Description

This quiz covers the principles and guidelines of risk management according to ISO 31000:2018, including establishing scope, context, and risk criteria. Learn how to assess and manage risks in various activities, processes, and operations.