IS 414 Flashcards
(115 cards)
Determining Risk Infographic
https://byu.app.box.com/s/vzl0tx8nkjj3y019altmb7e286c00ba0
Asset - threat - vulnerability - controls
impact - likelihood
level of risk
FAIR Institute Asset Value is determined by:
Criticality
Cost
Sensitivity
Control Identification
- Effective Controls decrease threats and/or decrease
likelihood
■ Process Controls
■ Security Controls
– Physical
– Network
– Host
Risk Treatment Options
- Reduction/ Mitigation
- Retention
– Give up, agree to live with it - Avoidance
– Peace out. Leave the market - Transfer
– Give risk to someone else.
insurance.
Define Fraud
-Gaining an unfair advantage over another person
Legally, for an act to be fraudulent there must be:
- a false statement, representation or disclosure
- a material fact that induces a person to act
- an intent to deceive
- a justifiable reliance; the person relies on the misrepresentation to take an action
- an injury or loss suffered by the victim
What are the 3 parts of the Fraud Triangle?
Opportunity, rationalization, &
pressure
What’s the definition of ‘Fraud’?
Any deceptive activity carried out online to illegally gain access to sensitive information or assets, typically with the intent to steal money, personal data, or other valuables, often achieved through tactics like phishing, identity theft, or malicious software (malware) like ransomware
What is Risk?
Risk is the potential for loss, damage, or destruction of an asset due to a threat exploiting a vulnerability
What is the Risk Formula?
Risk = Threat x Vulnerability x Asset Value
Risk = Impact x Livelihood
What is the Security Formula?
SECURITY =
MANAGING AN ACCEPTABLE
LEVEL OF RISK
How do controls affect the risk equation?
Level of Risk = ASSET * (VULNERABILITY * THREAT) / CONTROL
What are the Forms of Loss Associated with Assets
- Decreased Productivity
- Replacement Cost
- Expenses Incurred Handling Loss
- Fines or Legal Judgments
- Diminished Competitive Advantage
- Reputation
What is Primary v. Secondary Asset Loss
■ Primary Loss
– Related to asset itself
– E.g., replacement cost of asset
■ Secondary Loss
– Related to organization and external factors
– E.g., GDPR fine for data breach
How is asset value determined?
- Criticality
- Cost
- Sensitivity
■ Reputation (embarrassment)
■ Competitive advantage
■ Legal/Regulatory
■ Other
What does OWASP use for estimating likelihood?
Threat Agent Factors
■ Skill level
■ Motive
■ Opportunity
■ Size
Vulnerability Factors
■ Ease of Discovery
■ Ease of Exploit
■ Awareness
■ Intrusion Detection
What does OWASP use for estimating impact?
Technical Impact Factors
■ Loss of confidentiality
■ Loss of integrity
■ Loss of availability
■ Loss of accountability
Business Impact Factors
■ Financial damage
■ Reputation damage
■ Non-compliance
■ Privacy violation
Define each of these Risk Treatments/Responses:
■ Reduction/Mitigation
■ Retention
■ Avoidance
■ Transfer
Reduction/Mitigation
– Implementing controls to lower the impact or likelihood of a risk.
– Example: A company installs a firewall and anti-virus software to reduce the risk of cyberattacks.
Retention
– Accepting the risk without taking action because it is deemed low impact or cost-prohibitive to mitigate.
– Example: A business acknowledges the possibility of minor system downtime but chooses not to invest in backup servers.
Avoidance
– Eliminating the risk entirely by removing the activity or asset associated with it.
– Example: A company decides not to store customer credit card information to avoid the risk of a data breach.
Transfer
– Shifting the risk to a third party, often through insurance or outsourcing.
– Example: A business purchases cybersecurity insurance to cover potential financial losses from cyber incidents.
What is an Asset?
Anything of value that is owned
What are Controls?
Any safeguard or a countermeasure which can avoid, detect, counteract or minimize a loss.
Stuff we put in place to mitigate vulnerabilities and prevent threats
Often times, they don’t impact the value of an asset, but they greatly impact the vulnerability and threat.
What is a Threat?
A potential cause of an unwanted incident, which may result in harm to a system or organization. It can be any circumstance or event with the potential to exploit vulnerabilities and adversely impact assets, thereby causing loss or damage.
What is a vulnerability?
A flaw or weakness in a system’s design, implementation, operation, or management that could be exploited by a threat to gain unauthorized access to information or disrupt critical processing. It is the gap through which attackers can infiltrate a system.
What is Impact?
Refers to the potential damage or adverse effects on the organization if a specific risk is realized. This could involve financial loss, reputational damage, legal consequences, or operational disruption.
What is Likelihood?
Likelihood: Measures the probability of a particular risk event occurring. Factors influencing likelihood include the presence of vulnerabilities, the effectiveness of current controls, and the activity level of potential threats.
What is Vulnerability?
Indicates the weaknesses or flaws within the system that could potentially be exploited. A higher number or severity of vulnerabilities increases the risk.