When it comes to cybersecurity, we come across various tips to protect our data and related information. In this blog, I will shed light on the risk analysis factor. To analyze risk, we come upon with two methods that are the qualitative or quantitative approach. In order to get the best cybersecurity, either one of these or both approaches can be used.
Let’s discuss in detail to have a better understanding of them.
Qualitative risk assessment approach-
It focuses on risk and the effect of that risk on a business perspective. This factor is represented as a low, medium, and high to decide the risk value. Risk can be calculated with simple sum, multiplication, probability or impact values. This type of assessment is easy to carry out.
It provides information to risk assessor and manager about the implementation of control. On a scale 1-5; 1 is for control is not considered; 2 means control is considered without implementation; 3 means implemented but not formalized; 4 means formalized but no documentation; and 5 means implemented, formalized, and documented.
Have you heard about TRAC Tool? It is very efficient in performing this kind of assessment by giving a clue to the user that how effectively security system has been installed on the basis of pre-defined security controls standards.
However, it is also a fact that in terms of probability and impact definition, it is extremely biased.
Quantitative risk assessment approach-
This type of assessment relies on facts and data, on monetary terms. In order to get monetary results, some concepts are used by the quantitative approach.
- Single loss expectancy(SLE): Money could be lost one time when an incident takes place.
- Annual rate of occurrence(ARO): No. of incidents that are expected to occur are counted annually.
- Annual loss expectancy(ALE): It works as ALE=SLE*ARO; in one year. This is considered to be the risk value for quantitative risk assessment.
Mostly, it is found that that there is not enough data to analyze and sometimes; because of too high variables, analysis becomes impractical.
What’s more
Risk assessment is complex and has many human, administrative, and technical issues; which if not carried out effectively may make organizations rethink about performing the qualitative or quantitative risk assessment.
For quick and easy assessment, 99% of the companies choose a qualitative approach.
For high-security purposes, you can choose a quantitative approach.
However, it is not at all mandatory to go for a single approach; ISO 27001 gives the opportunity to carry out both assessments.
Now, if we combine both the approaches, what would be the results?
Firstly, make use of the qualitative approach to identify risks and evaluate whether these are relevant or not. Secondly, bring a quantitative approach to get thorough knowledge about the relevant risks to take an effective decision.
With this combined approach, the effectiveness and efficiency of the security risk assessment process get enhanced.
It is completely yours choice, what to choose for better cybersecurity for your business. You may opt a single or both risk assessment approaches according to your needs.
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