Risk is Measurable

"Risk cannot be measured," is a common scientificvaluable return-on-investment data.
and mathematical phrase often applied to information* "Security moves too fast." Technology continues to
security. While it's true some risk measurements arechange at an astounding rate. Many people feel
subjective, it's naive to believe measurements aren'tinformation security measurement can't keep up with
attainable. Risk is not a number, but a measurementtechnological change. But the problem actually may be
of risk is.poorly designed measurements. The intent of
For example, you can measure:measurement is to align corporate strategies with IT.
* The percentage of vendors meeting anClearly define the organization's goals and objectives.
organization's standards,Then measure information security as it relates to
* A percentage level of compliance to regulations,those goals and objectives.
andSMART measurements
* The number of vulnerabilities present in anPrudent decisions require simple, measurable,
environment.attainable, repeatable, and timely (SMART)
It's critical for credit unions to identify, prioritize, andinformation. Keep information security risk
manage risk. Management and technical staff mustmeasurements:
jointly define criteria for measuring information* Simple. Each measurement's objective must be
security performance. And these measurementsclearly understood by all intended parties. Create a list
should clearly align with business goals and strategies.of key performance indicators. Avoid technical, legal,
When developing measurement criteria, avoidand other jargon. Avoid data overload and stay
technical, legal, and subject matter jargon. Focus onfocused on specific performance measurements.
measuring the services rendered. Clearly define goals,* Measurable. While many facets of security and risk
strategies, and measurements. This facilitates openare hard to quantify, focus on what can be
communication, prudent planning, and financialmeasured-for example, the number of vulnerabilities
rewards.or the number of incidents.
Here are common excuses for avoiding risk* Attainable. Some measurements are direct outputs
measurement:of existing reports and systems; others may require
* "Management doesn't understand." Informationanalysis to derive the value. Make sure your
security encompasses technical and physical securitymeasurement goals are attainable over time, since
issues. Ensuring confidentiality, integrity, and availabilitythey must be continually assessed and managed with
requires deep insight into technology, risk modeling,minimal cost.
physical security, laws, and regulations. Technical* Repeatable. Since you'll want to show trends to
complexities often hinder communication betweengenerate useful data, make sure the measurements
management and information technology (IT) staff.are easy to take over time and can be repeated.
The challenge for IT staff: Convey complicated* Timely. Outdated information can skew analysis and
information simply and clearly. The challenge fordirectly impact decisions. The timeliness of data often
management: Be willing to accept change.determines its value. Make sure measurements are
* "Security measurement is for large credit unionseasy to deliver as needed. Aim for maximum
only." Incorporating information security riskautomation with minimal manual activity. Establish clear
measurement into an organization's processes takescommunication and access rights at the start.
time, persistence, and often a cultural change. PeopleYour credit union can measure information security
often feel threatened, dislike change, or have socialperformance. Risk models, financial measurements,
motivations that slow the process. But credit unionskey performance indicators, and other measurements
of all sizes benefit from risk measurement activities.can help you align information security with
It may take time, but persistence pays off when theorganizational goals and strategies.
measurements support budget requests and supply