MyMIS
that have the greatest impact on the organisation. The following steps can
be adopted in evaluating the risk:
(a) quantify the monetary value of a loss by considering these key
elements in risk analysis:
i. an estimate of the impact or cost of a specific difficulty if it
happens; and
ii. an estimation of the probability of encountering that difficulty
within a period of time;
(b) determine the potential economic impact of those risks or events
associated with each threat by using the list of vulnerabilities associated
with the department’s information assets identified in the previous
step;
(c) estimate the probability of the undesirable events occurring within
a specified period of time (usually one year). Identifying risks and
their economic impact does not directly lead to identifying which
security exposures are worth corrective action and which are not.
Estimating and considering the likelihood or probability of the
undesirable events is vital. For example, events such as floods or
earthquakes have catastrophic consequences. However, if they appear
to have a low probability of occurrence they might not justify protective
measures and the decision may be to tolerate the risks;
(d) evaluate the suitability of the following options once the monetary
value exposure or its annual loss is estimated:
i. tolerate the risk;
ii. insure against the risk;
iii. lower the monetary impact by implementing those measures
costing less than the exposure; or
iv. lower the probability of the loss occurring by implementing
protective measures costing less than the exposure;
(e) determine whether security safeguards are needed and if so, allocate
the cost. The information gained from this can be used to estimate
the annual monetary value of a loss, which subsequently can be
used to provide a common denominator for determining the magnitude
of each risk. A department may then develop safeguards against
the high monetary loss risks; and
(f) identify alternative security safeguards and provide recommendations
for cost-effective security solutions.
2.3.4
Identify the safeguards–
could be additional or
removal of ineffective
safety measures
Copyright MAMPU
Identification of Necessary Safeguards
Amongst the key elements of Public Sector ICT Security is to identify suitable
safeguards. The process of identification could result in acquiring additional
safeguards or the removal of ineffective safety measures because both monetary
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