ISO 27005 in 6 Steps: A Quick Overview of ISO 27005 for Business Users
ISO 27005 is a global standard that specifies how to perform an information security risk assessment in compliance with ISO 27001.
The ISO/IEC 27000 series of standards apply to all types and sizes of businesses, which is why consistent methods, procedures, risks, and controls would be unsuitable.
What is ISO 27005?
ISO 27005 is a global standard that specifies how to perform an information security risk assessment in compliance with ISO 27001. Risk assessments, as previously stated, are a vital component of any organization’s ISO 27001 compliance programme. ISO 27001 enables you to demonstrate risk assessment for information security risk management, mitigation strategies, and the deployment of necessary Annex A controls.
- ISO 27005 recommendations are a subset of a broader set of best practices for data breach prevention in your organization.
- The specification details the methods for formally identifying, assessing, evaluating, and treating information security vulnerabilities – all of which are required for an ISO27k Information Security Management System (ISMS).
- Its purpose is to guarantee that organizations design, implement, administer, monitor, and manage their information security controls and other arrangements in a reasonable and risk-based manner.
- ISO 27005, like the previous standards in the series, does not identify a clear path to compliance. It merely proposes recommended practices compatible with any standard information security management system.
How Can ISO 27005 Help Businesses?
This standard is solely dedicated to managing information security risks. If you want to better insight into your information security risk assessment and treatment, you should implement this standard.
ISO 27005 principles provide comprehensive guidance for management frameworks. Managers are recommended to employ formal procedures that are applicable to and appropriate for their organization’s particular circumstances, handling threats to information sensibly and systematically.
By identifying and placing information risks under management supervision, they may be handled successfully, in a way that adapts to changing conditions and capitalizes on development possibilities, resulting in the ISMS growing and becoming more successful over time.
ISO 27005 also promotes compliance with ISO 27001, which mandates that all controls implemented as part of an ISMS (Information Security Management System) be risk-based. This requirement can be accomplished by developing an ISO 27005-compliant risk management framework for information security.
ISO 27005 in 6 Steps
After reading these six steps, you’ll find out what you need to do to take advantage of this standard.
ISO 27005 Risk Assessment Methodology
The most crucial step is to define rules and the processes for risk management. You will ensure that the whole organization follows these rules. The main issue with the risk assessment is that the entire organization doesn’t perform it the same way, and each department does it differently.
It should be defined at the start whether you want quantitative or qualitative risk assessment. If you go for the qualitative evaluation, which scales will you use for assessment, and what should be the acceptable risk level?
Implementation of Risk Assessment
After the first step, now you’re familiar with the rules. The next step is to find out the potential accidents with you. First, list all your assets and then find potential vulnerabilities and threats to these assets. After that, you need to perform a risk assessment to see the likelihood and impact of those threats, and it can help you calculate the level of risk.
We feel that companies are only aware of the 30% of potential risks. That’s why it’s essential to perform this step. It will be time-consuming, but you’ll appreciate your efforts when you finish this step.
Risk Treatment Implementation
All the risks are not created equal. As mentioned earlier, you need to focus on the most important ones first. These risks are also known as unacceptable risks.
- Use Annex A to apply security controls, and it can help you to decrease risks
- If your business is insured, then you can transfer this risk to the insurance company
- Avoid doing risky activities; if they’re essential to perform, then do them in a different way
- If the cost of risk damage is not higher than the risk-mitigating, then accept the risk instead of mitigating it.
Your creativity will be tested here. You need to find ways to mitigate risk with minimum effort and investment. Sometimes, companies have an unlimited budget for risk treatment, but unfortunately, it’s not the best approach. You need to find how it can be done with minimum investment.
Risk Assessment Report
In this step, you need to create a report by documenting your progress, and these documents can help you check your progress in the coming years.
Statement of Applicability
It’s another crucial document because it shows your company’s security profile. According to the results you have achieved, you can list all the security controls you have implemented. You need to maintain this document because the auditor will use it to perform the audit, and then you’ll get a certification.
Risk Treatment Plan
The last step in ISO 27005 is the risk treatment plan. As the name indicates, now you’ll have to move from theory to practice. So far, what we have done was only a theoretical part, but we have to do it practically to gain results. In the risk treatment plan, you’ll define the role of each individual specify the deadline and budget.
You can also call this step an “Action Plan.” Once your document and plan everything, it’s time to get the management’s approval. Implementing all the controls, you have planned so far will take time and effort. Without management commitment, you can’t achieve the desired results.
If you start your journey without knowing how to protect your information, you might face significant losses. On the other hand, if you have all the knowledge and implement everything as planned, you can systematically take it.
ISO/IEC 27005 is a standard devoted exclusively to information security risk management. It is highly beneficial to gain a deeper understanding of information security risk assessment and treatment.