Scenario: You are the CISO and have just completed your first risk assessment for your...

The next step after identifying potential solutions is to verify that the cost of mitigation is less than the risk. This ensures that mitigation strategies are cost-effective and align with the organization's risk appetite.

Cost-Risk Analysis:

Assess the financial and operational impact of proposed controls.

Ensure the cost of implementing controls is justified by the reduction in risk.

Sequence of Actions:

Only after verifying cost-effectiveness should the board of directors or vendors be engaged.

Risk metrics and vendor screening are subsequent activities based on selected solutions.

Risk-Based Decision Making:

Decisions prioritize solutions that provide optimal security without exceeding the value of the protected asset.

Cost-Benefit Analysis in Risk Management: Emphasizes evaluating cost-effectiveness as a critical step in risk mitigation.

Strategic Risk Reduction: Aligns mitigation efforts with organizational risk tolerances.