The effectiveness of information security depends on defining risk consistently at each level, while recognizing the unique context and challenges of:
✅ Devices (endpoints, IoT, servers)
✅ Business Processes (operations, workflows)
✅ Organization (company-wide governance)
✅ Sector (industry-specific factors)
✅ Country (national security and regulatory environment)
Image:AI Generated 1️⃣ Device-Level Risk Frame
The risk perspective applied to individual hardware or software assets (e.g., laptops, mobile devices, IoT sensors, servers).
Key Risk Frame Elements:
| Component | Example |
|---|---|
| Assumptions | Device may be exposed to public networks. |
| Constraints | Device must use approved, encrypted storage. |
| Risk Tolerance | Low tolerance for unauthorized device access. |
| Priorities | Performance and battery life may trade-off with some security features. |
Example: An organization deploying field IoT devices assumes higher physical tampering risk and frames controls like secure boot or remote wipe.
2️⃣ Business Process-Level Risk Frame
The risk context around specific workflows that use or depend on information systems.
Key Risk Frame Elements:
| Component | Example |
|---|---|
| Assumptions | Payments process targeted by fraudsters. |
| Constraints | Process must comply with PCI DSS. |
| Risk Tolerance | Near-zero risk for incorrect transactions. |
| Priorities | Seamless customer experience is critical. |
Example: In online banking, the risk frame ensures two-factor authentication despite added steps for users.
3️⃣ Organization-Level Risk Frame
Enterprise-wide risk posture defining how leadership views, prioritizes, and manages information security risk.
Key Risk Frame Elements:
| Component | Example |
|---|---|
| Assumptions | Cyberattacks inevitable; focus on resilience. |
| Constraints | ISO 27001 certification requirements. |
| Risk Tolerance | Moderate risk for non-critical assets, none for core systems. |
| Priorities | Data protection, customer trust, operational uptime. |
Example: A hospital may accept some BYOD device risk but enforce strict controls over patient records.
4️⃣ Sector-Level Risk Frame
Shared risk considerations across an entire industry, shaped by common threats, regulatory demands, and sector interdependencies.
Key Risk Frame Elements:
| Component | Example |
|---|---|
| Assumptions | Financial sector faces targeted ransomware attacks. |
| Constraints | Must comply with banking-specific cybersecurity rules. |
| Risk Tolerance | Low tolerance for operational disruptions. |
| Priorities | Financial stability, consumer protection, systemic risk reduction. |
Example: In the energy sector, NERC CIP standards guide the sector's risk framing for critical infrastructure protection.
5️⃣ Country-Level Risk Frame
National strategies, laws, and threat perceptions that influence how public and private sectors manage cyber risks.
Key Risk Frame Elements:
| Component | Example |
|---|---|
| Assumptions | Nation-state actors pose threats to critical sectors. |
| Constraints | Must align with national cybersecurity policies. |
| Risk Tolerance | Minimal for threats impacting national security. |
| Priorities | National defense, economic stability, public safety. |
Example: Nepal's National Cybersecurity Policy shapes how organizations approach critical infrastructure protection.
Key Insight: Risk Framing Must Align Across Layers
Misalignment leads to gaps—e.g., secure devices but risky processes, or secure organizations operating in vulnerable sectors.
Practical Example: Ransomware Risk Frame Across Layers
| Layer | Risk Frame Example |
|---|---|
| Device | Endpoints require anti-malware, patching, backups. |
| Process | Backup and recovery integrated into business workflows. |
| Organization | Board mandates no ransom payment, prioritizes incident response readiness. |
| Sector | Financial sector collaborates on threat intelligence sharing. |
| Country | National policy prohibits ransom payments to sanctioned entities. |
Conclusion
Risk Framing is not one-size-fits-all; it cascades from national priorities to individual assets. To manage information security effectively, organizations must ensure:
