During an initial risk assessment, it is crucial to consider existing controls primarily to determine the current risk level. Here's a
Understanding Existing Controls:
Existing controls are measures already in place to mitigate risks. These controls can include technical, administrative, and physical safeguards designed to protect organizational assets.
Knowing what controls are currently in place helps to understand the organization’s current defense mechanisms against potential threats.
Assessing the Current Risk Level:
The current risk level is the risk that remains after considering the effectiveness of existing controls, often referred to as residual risk.
By evaluating these controls, one can determine how much risk is actually mitigated and what level of risk remains.
For instance, if an organization has implemented firewalls and intrusion detection systems, these controls would reduce the risk of cyber attacks. The effectiveness of these controls will determine the residual risk level.
Differentiating Between Risk Types:
Inherent Risk:This is the level of risk that exists before any controls are applied. It’s the raw risk associated with a particular asset or process.
Residual Risk:This is the risk that remains after existing controls have been applied. It's the actual risk that an organization faces after mitigation efforts.
Current Risk:This term is often used interchangeably with residual risk but focuses on the risk level at the present moment, considering the existing controls.
Primary Objective in Initial Risk Assessment:
The primary objective of considering existing controls during the initial risk assessment is to gain an accurate picture of the current risk landscape. This allows risk practitioners to understandwhat additional controls or modifications might be needed to further reduce risk to acceptable levels.
Without considering existing controls, the assessment would only reflect the inherent risk, which doesn’t provide a realistic view of the organization's risk exposure.
[References:, The CRISC Review Manual emphasizes the importance of understanding the current risk level by assessing existing controls (CRISC Review Manual, Chapter 2: IT Risk Assessment, Section 2.9.3 Current Risk)., , , , , , , , , ]
