What is your risk appetite?

In Jacobellis v. Ohio (1964), Justice Potter Steward was quoted as saying, “I don’t know what porn is, but I’ll know it when I see it.” This is not dissimilar to the position that many business leaders confront the concept of “risk”.

When a business leader can describe and identify the risk they are willing to accept, then the security team can put appropriate controls in place. Easy to say, but so very hard to do. It’s because the quantification and definition of risk varies widely depending on the person, the business unit, the enterprise and also the vertical industry segment.

What is the downside of not being able to define risk? It leaves the security team guessing about what controls are appropriate. Inadequate controls expose the business to leakage and loss, whereas onerous controls are expen$ive and even offensive to users.

What do you do about it? Communication between the security team and business stakeholders is essential. We find that scenarios that demonstrate and personalize the impact of risk resonate best. It’s also useful to have a common vocabulary as the language divide between the security team and business stakeholders is a consistent problem. Where possible, use terminology that is already in use in the business instead of something from a standard or framework.