+Executive Leadership Approval For Managing Material Risk

Executive Leadership Approval For Managing Material Risk

Description

Mechanisms exist to obtain executive leadership approval for risk management decisions involving material risk.

Possible Solutions & Considerations

Micro-Small Business (<10 staff) / BLS Firm Size Classes 1-2

∙ Owner approves decisions on significant risks; decisions documented

Small Business (10-49 staff) / BLS Firm Size Classes 3-4

∙ Executive sign-off for material risk decisions recorded in risk register

Medium Business (50-249 staff) / BLS Firm Size Classes 5-6

∙ Material risk decisions escalated to executive leadership with documented approval
∙ Risk register with approval fields

Large Business (250-999 staff) / BLS Firm Size Classes 7-8

∙ Risk governance committee with executive approval authority for material risks
∙ GRC solution (e.g., SCFConnect, Cyturus, SureCloud, SimpleRisk, Ignyte, ZenGRC, Galvanize, MetricStream, Archer, etc.)

Enterprise (> 1,000 staff) / BLS Firm Size Class 9

∙ Enterprise risk governance with board/executive approval workflows for material risk
∙ Enterprise GRC platform (e.g., Archer, MetricStream, ServiceNow IRM)
∙ Materiality determination procedures

SCR-CMM

Level 0 Not Performed

Practices are non-existent, based on the inability to demonstrate an implemented and operational capability. A reasonable person would conclude the control is not being performed.

Level 1 Performed Informally

SCR-CMM Level 1 criteria definitions are not available for this control:
▪ A reasonable person would conclude this control requires a structured process.
▪ At this level of maturity, the "ad hoc" nature of performing a capability informally would indicate the intent of the control is not met due to a lack of consistency and formality.

Level 2 Planned Tracked

SCR-CMM Level 2 criteria definitions are not available for this control:
▪ A reasonable person would conclude a well-defined and standardized process is required.
▪ At this level of maturity, the “requirements-driven” nature of performing the control is focused on a localized and/or regionalized implementation, not uniform and consistent across the organization.
▪ Requirements are narrowly scoped for applicability and are primarily derived from compliance obligations (e.g., laws, regulations and contracts).

Level 3 Well Defined

Risk Management (RSK) capabilities are standardized across the entity for applicability to People, Processes, Technologies, Data and/or Facilities (PPTDF) to ensure consistency for Technology Assets, Applications, Services and/or Data (TAASD). Capability criteria associated with this control reasonably expect the following criteria to exist:
▪ Policies and standards associated with RSK domain capabilities are formally documented and centrally-managed by the entity's Governance, Risk & Compliance (GRC) team, or similar function.
▪ Standardized Operating Procedures (SOP) associated with RSK domain capabilities are well-documented and kept current by process owners.
▪ A risk management team, or similar function, is appropriately staffed and supported to implement and maintain RSK domain capabilities.
▪ Technology is leveraged to enhance the efficiency and accuracy of risk management operations (e.g., risk management solution, GRC platform and TPRM tool).
▪ The entity's Governance, Risk & Compliance (GRC) team, or similar function, works with business stakeholders and process owners to appropriately scope and reasonably implement cybersecurity and data protection controls associated with RSK domain capabilities to address Minimum Compliance Requirements (MCR) (e.g., applicable statutory, regulatory and/or contractual requirements) and Discretionary Security Requirements (DSR) (e.g., entity-required controls).
▪ An implemented and operational capability exists to obtain executive leadership approval for risk management decisions involving material risk.

Level 4 Quantitatively Controlled

Utilize SCR-CMM Level 3 criteria definitions:
▪ There are no defined Level 4 criteria, since it is reasonable to assume a quantitatively-controlled process is not necessary to operationalize this control.
▪ While it may be possible to develop “metrics-driven” capabilities for this control, the criteria would be organization-specific to define.

Level 5 Continuously Improving

Utilize SCR-CMM Level 3 or Level 4 (if available) criteria definitions:
▪ There are no defined Level 5 criteria, since it is reasonable to assume a continuously-improving process is not necessary to operationalize this control.
▪ Level 5 capabilities should be considered “world-class” where the control builds on Level 4 capabilities, but are continuously improving through Artificial Intelligence (AI) and/or Machine Learning (ML) technologies.
▪ While it may be possible to develop responsive capabilities for this control through the use of AI and/or ML technologies, the criteria would be organization-specific to define.

1. Pārskats

1.1 Atsauces

1.2 Identificētās prasības

1.3 Saistītie tiesību akti

2. Identificētās prasības

Prasības

3. Saistītie tiesību akti

Tiesību akti
EULAW 3. pants IKT riska pārvaldība

3. pants

IKT riska pārvaldība

Finanšu vienības izstrādā, dokumentē un īsteno IKT riska pārvaldības politiku un procedūras, kas ietver visus no šiem elementiem:

a) 

norāde par riska tolerances līmeņa IKT riskam, kas noteikts saskaņā ar Regulas (ES) 2022/2554 6. panta 8. punkta b) apakšpunktu, apstiprināšanu;

b) 

procedūra un metodika IKT riska novērtējuma veikšanai, norādot:

i) 

ievainojamību un apdraudējumus, kas ietekmē vai var ietekmēt atbalstītās darbības funkcijas, IKT sistēmas un IKT aktīvus, kas atbalsta šīs funkcijas;

ii) 

kvantitatīvos vai kvalitatīvos rādītājus i) apakšpunktā minētās ievainojamības un apdraudējumu ietekmes un varbūtības novērtēšanai;

c) 

procedūra, ko izmanto, lai noteiktu, īstenotu un dokumentētu IKT riska risinājumu pasākumus attiecībā uz identificētajiem un novērtētajiem IKT riskiem, tajā skaitā noteiktu IKT riska risinājumu pasākumus, kas nepieciešami, lai panāktu, ka IKT risks atbilst a) punktā minētajam riska tolerances līmenim;

d) 

attiecībā uz atlikušajiem IKT riskiem, kas joprojām pastāv pēc c) punktā minēto IKT riska risinājumu pasākumu īstenošanas:

i) 

noteikumi par šo atlikušo IKT risku identificēšanu;

ii) 

uzdevumu un atbildības noteikšana attiecībā uz:

1) 

to atlikušo IKT risku pieņemšanu, kuri pārsniedz a) punktā minēto finanšu vienības riska tolerances līmeni;

2) 

pārskatīšanas procesu, kas minēts šā d) punkta iv) apakšpunktā;

iii) 

pieņemto atlikušo IKT risku inventarizācijas izstrāde, ietverot pamatojumu to pieņemšanai;

iv) 

noteikumi par pieņemto atlikušo IKT risku pārskatīšanu vismaz reizi gadā, ietverot:

1) 

norādi par jebkādām atlikušo IKT risku izmaiņām;

2) 

pieejamo risku mazināšanas pasākumu novērtējumu;

3) 

novērtējumu par to, vai iemesli, kas pamato atlikušo IKT risku pieņemšanu, joprojām ir spēkā un piemērojami pārskatīšanas datumā;

e) 

noteikumi par to, kā uzrauga:

i) 

jebkādas izmaiņas IKT risku un kiberdraudu vidē;

ii) 

iekšējo un ārējo ievainojamību un apdraudējumus;

iii) 

finanšu vienības IKT risku, lai varētu ātri atklāt izmaiņas, kas varētu ietekmēt tās IKT riska profilu;

f) 

noteikumi par procesu, ar kuru nodrošina, ka tiek ņemtas vērā jebkādas izmaiņas finanšu vienības darbības stratēģijā un digitālās darbības noturības stratēģijā.

Pirmās daļas c) punkta nolūkos minētajā punktā norādītā procedūra nodrošina:

a) 

īstenoto IKT riska risinājuma pasākumu efektivitātes uzraudzību;

b) 

novērtējumu par to, vai ir sasniegti finanšu vienības noteiktie riska tolerances līmeņi;

c) 

novērtējumu par to, vai finanšu vienība ir veikusi darbības, lai vajadzības gadījumā koriģētu vai uzlabotu minētos pasākumus.

Saistītie uzdevumi

Saites
is related to Semi-Annual
is related to relative Control Weighting = 09
is related to Process
is related to Identify
is related to SCRM Focus Tier 1 STRATEGIC
is related to SCRM Focus Tier 2 OPERATIONAL
is related to SCRM Focus Tier 3 TACTICAL
blocks Loss of Accountability / Attribution
blocks Excessive or Unauthorized Privilege
blocks Unauthorized Privilege Elevation
blocks Unauthorized Access
blocks Loss, Theft or Damage of Assets
blocks Unauthorized Modification / Loss of System Integrity
blocks Business / Service Interruption
blocks Data Loss / Integrity Compromise
blocks Reduced Operational Productivity
blocks System / Data Compromise (Technical Vector)
blocks System / Data Compromise (Non-Technical Vector)
blocks Revenue Loss
blocks Contractual Default / Termination
blocks Loss of Competitive Advantage
blocks Reputational Harm / Loss of Stakeholder Trust
blocks Regulatory / Legal / Contractual Financial Liability
blocks Exposure from Unaddressed Vulnerabilities
blocks System / Service Compromise
blocks Failure to Support Business / Mission Objectives
blocks Unaddressed Security / Compliance Exposure
blocks Unperformed / Unowned Control Responsibilities
blocks Uncontrolled Internal Security / Privacy Exposure
blocks Uncontrolled Third-Party Security / Privacy Exposure
blocks Lack of oversight of internal controls
blocks Lack of oversight of third-party controls
blocks Harm from Illegal, Abusive or Unsafe Content / Conduct
blocks Loss of Investigative / Evidentiary Capability
blocks Delayed Containment / Increased Incident Impact
blocks Incident Persistence / Recurrence
blocks Incident Response / Recovery Cost
blocks Undetected / Delayed Detection of Adverse Activity
blocks Lack of a security-minded workforce
blocks Third-Party Cybersecurity Compromise / Exposure
blocks Third-Party Physical Security Disruption / Exposure
blocks Sub-Tier / Fourth-Party Supply Chain Exposure
blocks Third-Party Legal / Compliance Exposure
blocks Harm from Unauthorized / Unintended Product or Service Use
blocks Third-Party Dependency Failure
is related to Annual
is related to Govern
blocks Failure to Achieve Strategic / Mission Objectives
blocks Inability to Demonstrate Due Diligence / Due Care
blocks Unreliable Assurance / Decision Information
blocks Drought & Water Shortage
blocks Earthquakes
blocks Fire & Wildfires
blocks Floods
blocks Hurricanes & Tropical Storms
blocks Landslides & Debris Flow
blocks Pandemic (Disease) Outbreaks
blocks Severe Weather
blocks Space Weather
blocks Thunderstorms & Lightning
blocks Tornadoes
blocks Tsunamis
blocks Volcanoes
blocks Winter Storms & Extreme Cold
blocks Dysfunctional Management Practices
blocks Human Error
blocks Statutory / Regulatory / Contractual Change
blocks Fraud, Corruption and/or Intentional Criminal Conduct
blocks Conflict of Interest (COI) / Undue Influence / Insider Misconduct
blocks Foreign Ownership, Control, or Influence (FOCI)
blocks Workforce Shortage / Loss of Critical Skills / Labor Disruption
blocks Failure to Achieve Strategic / Mission Objectives
blocks Inability to Demonstrate Due Diligence / Due Care
blocks Unreliable Assurance / Decision Information
blocks Drought & Water Shortage
blocks Earthquakes
blocks Fire & Wildfires
blocks Floods
blocks Hurricanes & Tropical Storms
blocks Landslides & Debris Flow
blocks Pandemic (Disease) Outbreaks
blocks Severe Weather
blocks Space Weather
blocks Thunderstorms & Lightning
blocks Tornadoes
blocks Tsunamis
blocks Volcanoes
blocks Winter Storms & Extreme Cold
blocks Dysfunctional Management Practices
blocks Human Error
blocks Statutory / Regulatory / Contractual Change
blocks Fraud, Corruption and/or Intentional Criminal Conduct
blocks Conflict of Interest (COI) / Undue Influence / Insider Misconduct
blocks Foreign Ownership, Control, or Influence (FOCI)
blocks Workforce Shortage / Loss of Critical Skills / Labor Disruption
is blocked by RSK-06.1 Executive Leadership Approval For Managing Material Risk – Assessment Procedure
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