FREMONT, CA: Risks are common in all companies regardless of the sector and its size, and if it exceeds beyond limits, it can lead to business failure. Risk management establishes a balance between taking risks and efforts to reduce them. Effective risk management can add value to any business. An effective risk management framework protects an organization’s capital base and earnings without hindering growth. Nowadays, investors invest in companies giving good risk management practices. Any effective framework should have the following key pieces, namely risk identification, measurement, mitigation, reporting and monitoring, and governance. Ultimately, RMF secures, authorizes, and manages IT systems.
Below are the six effective processes in the risk management framework.
It allows gaining an understanding of the organization. Before categorizing a system, define the system boundary. Using the system boundary, identify all information types associated with the system.
Choose security controls
Security controls are the operational, management, and technical safeguards or counteract employed inside an organization’s information system to protect the truthfulness, integrity, and availability of the system and its information. Select those that are effective when implemented within an information system.
Implement security controls
After the selection of security controls, it needs to implement in an organization and describe how controls are used within the information system and its operating environment. Policies should be tailored to each device to align with the required security documentation.
Assess security controls
Use appropriate assessment procedures to know the extent to which the controls are implemented correctly, operating as required, and producing the desired outcome while meeting the security requirements for the system.
Authorize information system
This operation includes the identification of the risk to organizational operations and assets, other organizations, and the nation resulting from the operation of the information system and the decision that this risk is acceptable. This also tracks the status of any failed controls.
Monitor security controls
By following continuous monitoring programs, organizations can maintain the security authorization of an information system in a continuously changing operating environment where systems adapt to the evolving threats, technologies, vulnerabilities, and business processes.
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