Cyber Fundamentals: Cybersecurity as Part of Risk Management

Cyber Risk Management Chronicles, Episode II

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Risk management is the process of minimizing or mitigating risk. It begins with identification and evaluation of the various types of risk that an organization faces, determining the probability that these risks will occur, estimating their potential impact, and determining optimal use of resources to monitor and minimize the same. The common purpose of risk management is to safeguard the organization’s mission, finances, and reputation in the face of natural, accidental, and adversarial threats. 

Cybersecurity is one category of enterprise risk management. Effective management balances achieving enterprise mission and objectives with optimizing resources (which are always limited) and risk. The below six core phases of risk management are applicable to almost all manner of risk, including cyber risk, and can be applied to any organization, regardless of size or industry: 

1. Identify the context. Context is the environment in which the organization operates

 as influenced by the risks identified.

2. Identify the risks. This means identifying the comprehensive set of risks and determining which events may impede objectives. 

3. Analyze the risks. This involves estimating the likelihood that each identified risk event will occur, and the potential impact of the consequences described. 

4. Prioritize the risks. Exposure is calculated for each risk, based on likelihood & potential impact, and the risks are then prioritized based on their exposure. 

5. Plan & execute risk response strategies. An appropriate response is determined for each risk, with such decisions informed by guidance from leadership. 

6. Monitor, evaluate, and adjust. Continual monitoring ensures that enterprise risk conditions remain within the defined risk appetite levels as risks change. 

Authors

  • Dr. Jack Dever

    Dr. Jack Dever J.D., LL.M., S.J.D. is the CEO of Lockhaven Solutions. Jack served as FBI Assistant General Counsel. In this role he advised on cyber operations against nation state actors and global Tier 1 operations against Al Qaeda and affiliate organizations. He was an Assistant US Attorney for the Northern District of Illinois (Chicago). In this capacity he worked on a wide array of cases, including foreign cyber espionage and data exfiltration. Jack served on active duty in the US Army as a Judge Advocate. He deployed multiple times to Iraq, Afghanistan, Bosnia and the Horn of Africa. He was awarded the Bronze Star and Purple Heart Medals. After leaving government service, Jack was an Executive at General Electric where he served as Global Crisis Management Leader. In this role, he developed the Business Intelligence Unit which investigated cyber fraud and financial crime. Jack went on to several enterprise risk leadership roles at several of the world’s largest banks, including GE Capital, Wells Fargo, and UBS. Jack holds a doctorate in Cyber Law. He has lectured extensively at universities, law schools and private institutions. He is Co-Director at the Center for National Security and Human Rights Law in Chicago and has published multiple peer-reviewed articles on Cyber Law, Banking Law, and National Security Law. He remains active in support of Disabled Veterans and underserved communities.

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  • James Dever, Esq.

    James Álvaro Dever, Esq.is a Principal at Lockhaven Solutions. James was a US Air Force Professor of Cyber Warfare. He taught Cyber Law, Intelligence Law, National Security Law, Privacy Law, and Space Law at the Air War College (AWC), Air Force Cyber College (AFCC), Air Force Judge Advocate General’s School (JAG School), Air Command and Staff College (ACSC), and Air Force Research Lab Information Directorate (AFRL), the nation’s premier research organization for Computers and Intelligence. In partnership with AFCC and National Security Agency (NSA) Cryptologic School colleagues, he designed new graduate degree programs in Cyber Strategy for senior military officers and Department of Defense (DoD) civilians. He has provided cyber education to senior government officials and private sector leaders from South America, Central America, Europe, Africa, Australia, and Asia. He served as a US Army Judge Advocate. He was the Cyber Warfare Judge Advocate at Army Cyber Command (ARCYBER) where he provided real-time legal advice on worldwide cyber offensive, cyber defensive, and DoD information network missions. He was Chair of the Law Department at the US Army Intelligence School. He taught Cyber Law, Intelligence Law, and National Security Law to DoD military personnel and civilians. He taught Advanced Source Operations at the HUMINT Training Joint Center of Excellence (HTJCOE), served as a Cyber Law Judge Advocate at the US Army Network Enterprise Technology Command (NETCOM), and was a Cyber Law liaison to the US Army Intelligence and Security Command (INSCOM). Prior to the Army, he worked at Deloitte Cyber Risk Services. At Deloitte, he partnered with the National Institute of Standards and Technology (NIST) and helped create the Trusted Identities in Cyberspace and Privacy Engineering programs. He facilitated cybersecurity risk management for Fortune 100 companies. He has published peer-reviewed law articles and book chapters on Cyber Law, Privacy Law, and National Security Law. He has lectured about enterprise cyber risk management at diverse venues including the Congressional Cybersecurity Caucus, the American Bar Association, NYU School of Law, the US Air Force Academy, and NATO Allied Command. He has taught extensively at universities and law schools. He is Advisory Director at the Center for National Security and Human Rights Law in Chicago and Co-Director, Cyber Risk Management for Executives Program. He is on the Board of Directors at the Journal of Law & Cyber Warfare.

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