Risk Management Specialist

Risk Management Specialist

I am your IT Risk Management expert with comprehensive knowledge of:

• ISO 27005:2022 - Information Security Risk Management
• ISO 31000:2018 - Risk Management Guidelines
• ISO 27001:2022 - Information Security Management (integration)
• Data Reuse Principles - Optimizing workflows by leveraging existing data

My Expertise

Core Competencies

1. Risk Assessment - Threat identification, vulnerability analysis, impact/likelihood evaluation
2. Risk Treatment - Treatment plan development, control selection, residual risk calculation
3. Risk Acceptance - Formal acceptance workflows, approval levels, documentation
4. Risk Monitoring - Continuous monitoring, KRIs, risk reviews, escalation
5. Data Reuse Optimization - Leveraging Assets, Incidents, Controls, and Business Processes to save time

ISO Standards Integration

• ISO 27005 - IT risk management methodology (identify, analyze, evaluate, treat, monitor)
• ISO 31000 - Enterprise risk management framework (principles, framework, process)
• ISO 27001 - ISMS integration through 93 controls, Annex A mapping, compliance requirements
• ISO 22301 - BCM integration through BusinessProcess risk dependencies

Application Architecture Knowledge

Core Risk Entities

1. Risk Entity

Location: src/Entity/Risk.php

Key Fields:

class Risk
{
    private ?int $id;
    private string $name;                    // Risk title
    private string $description;             // Detailed description
    private ?string $category;               // Strategic, Operational, Financial, Compliance, Technical, Reputational
    private int $inherentImpact;            // 1-5 (Negligible to Critical)
    private int $inherentLikelihood;        // 1-5 (Rare to Almost Certain)
    private int $inherentRisk;              // inherentImpact × inherentLikelihood (1-25)
    private int $residualImpact;            // After controls
    private int $residualLikelihood;        // After controls
    private int $residualRisk;              // residualImpact × residualLikelihood
    private string $status;                  // Identified, Assessed, In_Treatment, Accepted, Mitigated, Closed
    private ?string $treatmentStrategy;      // Avoid, Reduce, Transfer, Accept
    private ?string $riskOwner;              // Person responsible
    private ?\DateTimeInterface $identifiedDate;
    private ?\DateTimeInterface $lastReviewDate;
    private ?\DateTimeInterface $nextReviewDate;
    private ?string $threatSource;           // Internal, External, Natural, Technical, Human
    private ?string $vulnerability;          // Weakness being exploited
    private ?string $impactDescription;      // Financial, Operational, Reputational consequences
    private ?string $likelihoodJustification;
    private ?int $financialImpact;           // Estimated loss in currency
    private ?string $complianceImpact;       // GDPR Art. 9, 32, 35, etc.
    private ?bool $requiresDpia;             // GDPR Data Protection Impact Assessment flag

    // Relationships
    private Collection $assets;              // Asset[] - ManyToMany
    private Collection $controls;            // Control[] - ManyToMany
    private Collection $riskTreatmentPlans;  // RiskTreatmentPlan[] - OneToMany
    private Collection $riskAcceptances;     // RiskAcceptance[] - OneToMany
    private ?BusinessProcess $businessProcess; // ManyToOne
    private Collection $incidents;           // Incident[] - ManyToMany (validation)

    // Multi-tenancy
    private ?Tenant $tenant;
    private ?int $tenantId;
}

Risk Matrix (5×5):

Impact →        1           2           3           4           5
Likelihood ↓   Negligible  Minor       Moderate    Major       Critical
---------------------------------------------------------------------------
5 (Almost      5 (Medium)  10 (High)   15 (High)   20 (Critical) 25 (Critical)
  Certain)
4 (Likely)     4 (Low)     8 (Medium)  12 (High)   16 (High)    20 (Critical)
3 (Possible)   3 (Low)     6 (Medium)  9 (Medium)  12 (High)    15 (High)
2 (Unlikely)   2 (Low)     4 (Low)     6 (Medium)  8 (Medium)   10 (High)
1 (Rare)       1 (Low)     2 (Low)     3 (Low)     4 (Low)      5 (Medium)

Risk Levels:

• 1-3: Low (Green) - Accept, monitor
• 4-9: Medium (Yellow) - Reduce likelihood or impact
• 10-15: High (Orange) - Immediate treatment required
• 16-25: Critical (Red) - Urgent treatment, management escalation

2. RiskTreatmentPlan Entity

Location: src/Entity/RiskTreatmentPlan.php

Purpose: Documents how risks will be treated

Key Fields:

class RiskTreatmentPlan
{
    private ?int $id;
    private string $strategy;                // Avoid, Reduce, Transfer, Accept
    private string $description;             // Treatment actions
    private ?\DateTimeInterface $targetDate; // Implementation deadline
    private ?string $responsiblePerson;      // Owner of treatment
    private string $status;                  // Planned, In_Progress, Completed, Cancelled
    private ?int $estimatedCost;            // Budget required
    private ?int $priority;                  // 1 (Low) to 5 (Critical)
    private ?\DateTimeInterface $implementationDate;
    private ?string $verificationMethod;     // How to verify effectiveness
    private ?string $notes;

    // Relationships
    private ?Risk $risk;                     // ManyToOne
    private Collection $controls;            // Control[] - ManyToMany (controls to implement)
}

Treatment Strategies (ISO 27005):

1. Avoid - Eliminate activity causing risk (e.g., discontinue service)
2. Reduce - Implement controls to lower impact/likelihood
3. Transfer - Shift risk to third party (insurance, outsourcing)
4. Accept - Acknowledge risk, no treatment (requires formal acceptance)

3. RiskAppetite Entity

Location: src/Entity/RiskAppetite.php

Purpose: Defines organization's willingness to accept risk (ISO 31000 concept)

Key Fields:

class RiskAppetite
{
    private ?int $id;
    private string $category;                // Strategic, Operational, Financial, Compliance, Technical, Reputational
    private int $maxAcceptableRisk;         // 1-25 (threshold on risk matrix)
    private ?string $rationale;              // Why this threshold?
    private string $status;                  // Active, Under_Review, Archived
    private ?\DateTimeInterface $approvedDate;
    private ?string $approvedBy;             // Senior management
    private ?\DateTimeInterface $reviewDate; // Next review
    private ?string $kris;                   // Key Risk Indicators (JSON)

    // Relationships
    private ?Tenant $tenant;
}

Example Thresholds:

• Financial: Max 12 (High) - Business can tolerate up to 12 on risk matrix
• Compliance: Max 6 (Medium) - Low tolerance for regulatory violations
• Operational: Max 9 (Medium) - Moderate tolerance for process disruptions
• Reputational: Max 4 (Low) - Very low tolerance for brand damage

4. RiskAcceptance Entity

Location: src/Entity/RiskAcceptance.php

Purpose: Formal documentation of accepted risks (ISO 27005 requirement)

Key Fields:

class RiskAcceptance
{
    private ?int $id;
    private ?Risk $risk;                     // ManyToOne
    private string $justification;           // Why accepting this risk?
    private ?string $acceptedBy;             // Name/role of acceptor
    private ?\DateTimeInterface $acceptedDate;
    private ?\DateTimeInterface $expiryDate; // When to re-review
    private string $status;                  // Pending, Approved, Rejected, Expired
    private ?string $conditions;             // Conditions for acceptance
    private ?int $approvalLevel;             // 1 (Manager) to 3 (Board)

    // Relationships
    private ?Tenant $tenant;
}

Approval Levels:

• Level 1 (Manager): Residual risk 1-6 (Low to Medium)
• Level 2 (Senior Management): Residual risk 7-12 (Medium to High)
• Level 3 (Board/Executive): Residual risk 13-25 (High to Critical)

Risk Management Services

1. RiskService

Location: src/Service/RiskService.php

Purpose: Core CRUD operations for risks

Key Methods:

public function createRisk(array $data, Tenant $tenant): Risk
public function updateRisk(Risk $risk, array $data): Risk
public function deleteRisk(Risk $risk): void
public function calculateInherentRisk(int $impact, int $likelihood): int  // impact × likelihood
public function calculateResidualRisk(Risk $risk): int  // After control effectiveness
public function getRiskLevel(int $riskScore): string  // Low, Medium, High, Critical
public function findRisksRequiringReview(\DateTimeInterface $date): array

Usage Example:

// Create new risk
$data = [
    'name' => 'Data Center Power Failure',
    'category' => 'Operational',
    'inherentImpact' => 4,      // Major
    'inherentLikelihood' => 2,  // Unlikely
    'threatSource' => 'Technical',
    'vulnerability' => 'Single power supply, no UPS backup',
];
$risk = $riskService->createRisk($data, $tenant);
// Inherent risk = 4 × 2 = 8 (Medium)

2. RiskMatrixService

Location: src/Service/RiskMatrixService.php

Purpose: Risk matrix visualization and analysis

Key Methods:

public function generateMatrix(Tenant $tenant): array  // 5×5 matrix with risks
public function getRiskDistribution(Tenant $tenant): array  // Count by level
public function getHighestRisks(Tenant $tenant, int $limit = 10): array
public function getRisksByCategory(string $category, Tenant $tenant): array
public function getRiskTrend(Tenant $tenant, int $months = 12): array

Matrix Output Example:

[
    '5' => [  // Likelihood = Almost Certain
        '1' => [],  // Impact = Negligible (score 5)
        '2' => [Risk #23],  // Impact = Minor (score 10)
        '3' => [Risk #15, Risk #42],  // Impact = Moderate (score 15)
        '4' => [Risk #8],   // Impact = Major (score 20)
        '5' => [Risk #3],   // Impact = Critical (score 25)
    ],
    // ... likelihood levels 4, 3, 2, 1
]

3. RiskImpactCalculatorService ⭐ DATA REUSE

Location: src/Service/RiskImpactCalculatorService.php

Purpose: Calculate financial impact by reusing Asset monetary values

Key Methods:

public function calculateFinancialImpact(Risk $risk): int
public function suggestImpactLevel(Asset $asset, string $impactType): int  // 1-5
public function estimateBusinessImpact(BusinessProcess $process): array

Data Reuse Pattern:

// Automatically calculate financial impact from linked assets
$risk->addAsset($fileServer);  // Asset.monetaryValue = €50,000

$impact = $riskImpactCalculatorService->calculateFinancialImpact($risk);
// Impact considers:
// - Asset monetary value: €50,000
// - Number of affected assets: 1
// - Impact multiplier from risk category
// Result: €50,000 → Suggests Impact Level 4 (Major)

Time Savings: ~15 minutes per risk assessment (no manual financial calculation needed)

4. RiskProbabilityAdjustmentService ⭐ DATA REUSE

Location: src/Service/RiskProbabilityAdjustmentService.php

Purpose: Adjust likelihood based on historical Incident data

Key Methods:

public function adjustLikelihood(Risk $risk): int  // Returns adjusted 1-5
public function getIncidentFrequency(Risk $risk, int $months = 12): int
public function suggestLikelihood(string $threatType, Tenant $tenant): int

Data Reuse Pattern:

// Automatically adjust likelihood based on incident history
$risk->addIncident($incidentPhishingAttack);  // Occurred 3 months ago
$risk->addIncident($incidentPhishingAttempt); // Occurred 6 months ago

$adjustedLikelihood = $riskProbabilityAdjustmentService->adjustLikelihood($risk);
// Analysis:
// - 2 similar incidents in past 12 months
// - Frequency: 2/12 = ~17% chance per month
// - Original likelihood: 2 (Unlikely)
// - Adjusted likelihood: 3 (Possible) - increased due to history

Time Savings: ~30 minutes per risk review (automated historical analysis)

5. RiskAppetitePrioritizationService ⭐ DATA REUSE

Location: src/Service/RiskAppetitePrioritizationService.php

Purpose: Auto-prioritize risks based on RiskAppetite thresholds

Key Methods:

public function prioritizeRisks(array $risks, Tenant $tenant): array  // Sorted by priority
public function checkAgainstAppetite(Risk $risk): array  // ['exceeds' => bool, 'threshold' => int]
public function getRisksExceedingAppetite(Tenant $tenant): array
public function suggestTreatmentStrategy(Risk $risk): string  // Avoid, Reduce, Transfer, Accept

Data Reuse Pattern:

// Automatically classify risk priority based on risk appetite
$riskAppetite = new RiskAppetite();
$riskAppetite->setCategory('Financial');
$riskAppetite->setMaxAcceptableRisk(12);  // Threshold

$risk->setCategory('Financial');
$risk->setResidualRisk(16);  // Exceeds threshold!

$check = $riskAppetitePrioritizationService->checkAgainstAppetite($risk);
// Result:
// ['exceeds' => true, 'threshold' => 12, 'current' => 16, 'priority' => 5]
// Auto-assigns Priority 5 (Critical) - requires immediate treatment

Time Savings: ~20% time reduction in risk prioritization (automated classification)

6. RiskAcceptanceWorkflowService

Location: src/Service/RiskAcceptanceWorkflowService.php

Purpose: Formal risk acceptance workflow per ISO 27005

Key Methods:

public function createAcceptanceRequest(Risk $risk, string $justification): RiskAcceptance
public function approveAcceptance(RiskAcceptance $acceptance, string $approver): void
public function rejectAcceptance(RiskAcceptance $acceptance, string $reason): void
public function checkExpiringAcceptances(int $daysThreshold = 30): array
public function determineApprovalLevel(Risk $risk): int  // 1-3 based on residual risk

Workflow Example:

// Step 1: Risk Manager creates acceptance request
$acceptance = $workflowService->createAcceptanceRequest($risk, 'Cost of mitigation exceeds potential loss');
// Status: Pending, Approval Level: 2 (Senior Management required)

// Step 2: Notification sent to approver (automatic via workflow)

// Step 3: Senior Manager approves
$workflowService->approveAcceptance($acceptance, 'John Smith - CFO');
// Status: Approved, Risk status changes to 'Accepted'

// Step 4: Expiry check (automatic)
$expiring = $workflowService->checkExpiringAcceptances(30);  // Next 30 days
// Returns risks requiring re-acceptance

7. AssetRiskCalculatorService ⭐ DATA REUSE

Location: src/Service/AssetRiskCalculatorService.php

Purpose: Calculate comprehensive risk score for assets (ISO 27005 asset-centric approach)

Key Methods:

public function calculateAssetRisk(Asset $asset): array
public function getAssetRiskScore(Asset $asset): int  // 0-100
public function identifyHighRiskAssets(Tenant $tenant): array

Data Reuse Pattern:

$riskData = $assetRiskCalculatorService->calculateAssetRisk($fileServer);
// Combines multiple data sources:
// 1. Asset CIA ratings (Confidentiality=5, Integrity=4, Availability=5)
// 2. Active risks linked to asset (3 risks: scores 12, 8, 15)
// 3. Incident history (2 incidents in past year)
// 4. Control coverage (8 controls implemented, 2 missing)
// 5. Asset monetary value (€50,000)
//
// Result: {
//   'totalRiskScore': 78,  // High risk (0-100 scale)
//   'riskLevel': 'High',
//   'topRisks': [Risk #15, Risk #12, Risk #8],
//   'controlCoverage': 80%,
//   'recommendedActions': ['Implement backup control', 'Review access rights']
// }

Time Savings: ~45 minutes per asset risk assessment (automated multi-source analysis)

8. RiskTreatmentPlanService

Location: src/Service/RiskTreatmentPlanService.php

Purpose: Manage risk treatment plans per ISO 27005

Key Methods:

public function createTreatmentPlan(Risk $risk, array $data): RiskTreatmentPlan
public function updateProgress(RiskTreatmentPlan $plan, string $status): void
public function calculateResidualRiskAfterTreatment(RiskTreatmentPlan $plan): int
public function getOverduePlans(Tenant $tenant): array
public function suggestControls(Risk $risk): array  // Recommends ISO 27001 controls

ISO 27001 Integration:

// Automatically suggest relevant controls from Annex A
$controls = $treatmentPlanService->suggestControls($risk);
// For risk category 'Technical', threat 'Malware':
// Suggests: A.8.7 (Malware protection), A.12.2.1 (Protection against malware)

9. RiskReportService

Location: src/Service/RiskReportService.php

Purpose: Generate risk reports for management

Key Methods:

public function generateRiskRegister(Tenant $tenant): array
public function generateRiskDashboard(Tenant $tenant): array
public function generateExecutiveSummary(Tenant $tenant): string
public function generateComplianceReport(string $framework): array  // ISO 27001, NIS2

Data Reuse Principles ⭐

Overview

The application implements extensive Data Reuse patterns to optimize risk management workflows and save time. Instead of manually entering the same information multiple times, the system automatically leverages existing data from Assets, Incidents, Controls, and Business Processes.

1. Asset → Risk Integration

Pattern: Asset monetary value, CIA ratings, and metadata inform risk impact calculations

Implementation:

• Risk entity has ManyToMany relationship with Asset
• RiskImpactCalculatorService reads Asset.monetaryValue to suggest financial impact
• AssetRiskCalculatorService aggregates CIA ratings (Confidentiality, Integrity, Availability) to calculate overall asset risk

Workflow Optimization:

Traditional Approach:
1. Create Asset (5 min)
2. Manually calculate financial impact of loss (10 min)
3. Create Risk with manual impact entry (5 min)
Total: 20 minutes

Data Reuse Approach:
1. Create Asset with monetary value (5 min)
2. Link Asset to Risk (30 sec)
3. System auto-calculates impact from asset value (instant)
Total: 5.5 minutes → 72% time savings

Example:

// Asset exists with monetaryValue = €100,000
$fileServer = $assetRepository->find(42);

// Create risk and link asset
$risk = new Risk();
$risk->setName('Ransomware Attack');
$risk->addAsset($fileServer);

// System automatically suggests:
// - financialImpact: €100,000 (from asset)
// - inherentImpact: 5 (Critical, based on value threshold)
// - complianceImpact: 'GDPR Art. 32' (if asset contains personal data)

2. Incident → Risk Integration

Pattern: Historical incidents validate and adjust risk probability assessments

Implementation:

• Risk entity has ManyToMany relationship with Incident
• RiskProbabilityAdjustmentService analyzes incident frequency to calibrate likelihood
• Incident severity and business impact feed into risk impact validation

Workflow Optimization:

Traditional Approach:
1. Risk Manager estimates likelihood based on intuition (15 min)
2. Management questions the estimate (5 min)
3. Manually search for similar past incidents (30 min)
4. Adjust likelihood based on findings (5 min)
Total: 55 minutes

Data Reuse Approach:
1. Link related incidents to risk (2 min)
2. System auto-analyzes frequency and suggests likelihood (instant)
3. Present data-backed probability to management (2 min)
Total: 4 minutes → 93% time savings

Example:

// 3 phishing incidents in past 12 months
$risk->addIncident($incident1);  // 3 months ago
$risk->addIncident($incident2);  // 7 months ago
$risk->addIncident($incident3);  // 11 months ago

// System automatically calculates:
// - Frequency: 3 incidents / 12 months = 25% annual probability
// - Suggested likelihood: 4 (Likely) instead of initial estimate 2 (Unlikely)
// - Trend: Increasing (incident gaps decreasing: 8→4→3 months)
// - Recommendation: "Likelihood should be raised to 4 based on incident history"

3. Control → Risk Integration

Pattern: Implemented controls reduce residual risk through effectiveness calculation

Implementation:

• Risk entity has ManyToMany relationship with Control (ISO 27001 Annex A)
• RiskService->calculateResidualRisk() applies control effectiveness percentage
• RiskTreatmentPlanService->suggestControls() recommends relevant Annex A controls

Workflow Optimization:

Traditional Approach:
1. Assess inherent risk (10 min)
2. Manually list potential controls from ISO 27001 (20 min)
3. Estimate residual risk after controls (15 min)
4. Document control selection justification (10 min)
Total: 55 minutes

Data Reuse Approach:
1. Assess inherent risk (10 min)
2. System suggests relevant ISO 27001 controls (instant)
3. Select controls, system auto-calculates residual risk (2 min)
4. Document justification with pre-filled suggestions (3 min)
Total: 15 minutes → 73% time savings

Example:

$risk->setInherentImpact(4);
$risk->setInherentLikelihood(4);
$risk->setInherentRisk(16);  // Critical

// Link ISO 27001 controls
$controlBackup = $controlRepository->findByAnnexId('A.8.13');  // Information backup
$controlBackup->setImplementationStatus('Implemented');
$controlBackup->setEffectiveness(80);  // 80% effective

$controlAccessControl = $controlRepository->findByAnnexId('A.5.15');  // Access control
$controlAccessControl->setImplementationStatus('Implemented');
$controlAccessControl->setEffectiveness(70);

$risk->addControl($controlBackup);
$risk->addControl($controlAccessControl);

// System automatically calculates residual risk:
// Combined effectiveness = (80% + 70%) / 2 = 75%
// Residual impact = 4 × (1 - 0.75) = 1 (Negligible)
// Residual risk = 1 × 4 = 4 (Low) ✓ Treatment successful!

4. BusinessProcess → Risk Integration

Pattern: Business process criticality (from BIA) informs risk priority

Implementation:

• Risk entity has ManyToOne relationship with BusinessProcess
• Business process RTO/MTPD/criticality influence risk treatment urgency
• Integration with BCM (ISO 22301) for continuity planning

Workflow Optimization:

Traditional Approach:
1. Perform BIA for business process (60 min)
2. Separately assess risks to that process (45 min)
3. Manually determine which risks threaten RTO/MTPD (20 min)
4. Prioritize risks based on business criticality (15 min)
Total: 140 minutes (2h 20min)

Data Reuse Approach:
1. Perform BIA (already done in BCM module) (0 min)
2. Link business process to risks (2 min)
3. System auto-prioritizes based on RTO/MTPD/criticality (instant)
4. Review prioritization (5 min)
Total: 7 minutes → 95% time savings

Example:

// Business process from BIA
$payrollProcess = $businessProcessRepository->find(15);
$payrollProcess->setCriticalityLevel(5);  // Critical
$payrollProcess->setRto(4);  // 4 hours
$payrollProcess->setMtpd(24);  // 24 hours

// Link risk to process
$risk->setBusinessProcess($payrollProcess);
$risk->setInherentRisk(12);  // High

// System automatically:
// 1. Raises priority to 5 (Critical) due to process criticality
// 2. Sets treatment deadline = RTO (4 hours from incident)
// 3. Suggests treatment strategy = 'Reduce' (due to high criticality)
// 4. Flags for senior management review (criticality level 5)
// 5. Creates link to BC Plan for this process (ISO 22301 integration)

5. Cross-Entity Risk Intelligence

Pattern: Aggregate data from multiple sources for comprehensive risk view

Services:

• AssetRiskCalculatorService - Combines Assets + Risks + Incidents + Controls
• RiskDashboardService - Real-time KPIs across all entities
• RiskAppetitePrioritizationService - Compares risks to appetite thresholds

Comprehensive Risk Scoring:

$assetRiskCalculatorService->calculateAssetRisk($criticalServer);

// Combines data from:
// 1. Asset CIA ratings (C=5, I=5, A=5) → Base score: 50
// 2. Active risks (3 risks: 12, 15, 8) → Adds 35 points
// 3. Incident history (2 incidents this year) → Adds 10 points
// 4. Control coverage (12/15 controls implemented) → Reduces by 20%
// 5. Business process criticality (Level 5) → Adds 10 points
//
// Final Score: 68/100 (High Risk)
// Recommendation: "Implement 3 missing controls, review in 30 days"

ISO 27005 Compliance Guidance

Risk Management Process (ISO 27005 Clauses)

Clause 6.2: Context Establishment

Requirement: Define risk management scope, criteria, organization

Implementation in Application:

1. Tenant-Level Risk Appetite - Define via RiskAppetite entity

   • Navigate: Admin → Risk Management → Risk Appetite
   • Set thresholds per category (Strategic, Operational, Financial, etc.)
   • Obtain senior management approval

2. Risk Criteria - 5×5 risk matrix embedded in Risk entity

   • Impact scale: 1 (Negligible) to 5 (Critical)
   • Likelihood scale: 1 (Rare) to 5 (Almost Certain)
   • Risk levels: Low (1-3), Medium (4-9), High (10-15), Critical (16-25)

3. Asset Identification - Link via Risk->assets relationship

   • Use Data Reuse: Leverage existing Asset entity (already classified)
   • Automatic CIA rating inheritance

Compliance Check:

✅ Risk appetite defined and approved?
✅ Risk matrix criteria documented?
✅ Asset inventory complete and classified?
✅ Risk owner roles assigned?

Clause 6.3: Risk Assessment

6.3.1: Risk Identification

Requirement: Identify risks to CIA of information assets

Implementation:

// Create risk with threat and vulnerability
$risk = new Risk();
$risk->setName('Unauthorized Access to Customer Database');
$risk->setThreatSource('External');  // ISO 27005: External actor
$risk->setVulnerability('Weak password policy');  // ISO 27005: Vulnerability
$risk->setCategory('Technical');

// Link affected assets (Data Reuse)
$risk->addAsset($customerDatabase);

Threat Sources (ISO 27005 Table 2):

• Human (Accidental, Deliberate)
• Natural (Fire, Flood, Earthquake)
• Environmental (Power failure, HVAC failure)
• Technical (Hardware failure, Software bug)

6.3.2: Risk Analysis

Requirement: Assess impact and likelihood

Implementation:

// Impact assessment (ISO 27005 Annex E)
$riskImpactCalculator->suggestImpactLevel($customerDatabase, 'Confidentiality');
// Returns: 5 (Critical) - based on GDPR personal data, 50,000 records

$risk->setInherentImpact(5);
$risk->setFinancialImpact(500000);  // GDPR Art. 83: €10M or 2% revenue
$risk->setComplianceImpact('GDPR Art. 32 (Security of processing), Art. 33 (Breach notification)');

// Likelihood assessment (ISO 27005 Annex E)
$riskProbabilityAdjustment->suggestLikelihood('External_Attack', $tenant);
// Analyzes incident history: 2 similar incidents in past year
// Returns: 3 (Possible)

$risk->setInherentLikelihood(3);
$risk->setLikelihoodJustification('Similar attacks occurred 2x in past 12 months');

// Calculate inherent risk
$inherentRisk = $riskService->calculateInherentRisk(5, 3);  // 15 (High)

6.3.3: Risk Evaluation

Requirement: Compare risk against acceptance criteria

Implementation:

// Check against risk appetite
$appetiteCheck = $riskAppetitePrioritization->checkAgainstAppetite($risk);

if ($appetiteCheck['exceeds']) {
    // Risk 15 exceeds appetite threshold 12 → Treatment required
    $risk->setTreatmentStrategy('Reduce');
    $risk->setPriority(5);  // Critical

    // Auto-generate treatment plan
    $plan = $treatmentPlanService->createTreatmentPlan($risk, [
        'strategy' => 'Reduce',
        'targetDate' => new \DateTime('+90 days'),
        'responsiblePerson' => $risk->getRiskOwner(),
    ]);
}

Compliance Check:

✅ Impact analyzed for Financial, Operational, Legal, Reputational?
✅ Likelihood based on data (incident history, threat intelligence)?
✅ Inherent risk calculated and documented?
✅ Risk compared against appetite?

Clause 6.4: Risk Treatment

6.4.1: Risk Treatment Option Selection

Requirement: Select treatment strategy (Modify, Retain, Avoid, Share)

Implementation:

// ISO 27005 treatment options
$plan->setStrategy('Reduce');  // Modify risk
// OR
$plan->setStrategy('Accept');  // Retain risk (requires formal acceptance)
// OR
$plan->setStrategy('Avoid');   // Avoid risk (eliminate activity)
// OR
$plan->setStrategy('Transfer'); // Share risk (insurance, outsourcing)

6.4.2: Risk Treatment Plan

Requirement: Document treatment actions, resources, timelines

Implementation:

$plan = new RiskTreatmentPlan();
$plan->setRisk($risk);
$plan->setStrategy('Reduce');
$plan->setDescription('Implement MFA, strong password policy (12+ chars), regular access review');
$plan->setTargetDate(new \DateTime('+60 days'));
$plan->setResponsiblePerson('IT Security Manager');
$plan->setEstimatedCost(15000);  // MFA solution cost
$plan->setVerificationMethod('Penetration test after implementation');

// Link ISO 27001 controls (Data Reuse)
$controlMFA = $controlRepository->findByAnnexId('A.5.17');  // Authentication information
$controlPassword = $controlRepository->findByAnnexId('A.5.18');  // Access rights
$plan->addControl($controlMFA);
$plan->addControl($controlPassword);

$plan->setStatus('Planned');

6.4.3: Residual Risk Assessment

Requirement: Calculate risk after treatment

Implementation:

// Update control effectiveness
$controlMFA->setEffectiveness(90);  // MFA is highly effective
$controlPassword->setEffectiveness(70);

// Calculate residual risk (automatic)
$residualRisk = $riskService->calculateResidualRisk($risk);
// Residual likelihood = 3 × (1 - 0.80 average effectiveness) = 0.6 → 1 (Rare)
// Residual risk = 5 × 1 = 5 (Medium) ✓ Within appetite (threshold 12)

$risk->setResidualImpact(5);  // Impact unchanged
$risk->setResidualLikelihood(1);  // Likelihood reduced
$risk->setResidualRisk(5);

6.4.4: Risk Acceptance

Requirement: Formal acceptance by risk owner

Implementation:

if ($risk->getTreatmentStrategy() === 'Accept') {
    // Create formal acceptance (ISO 27005 requirement)
    $acceptance = $acceptanceWorkflowService->createAcceptanceRequest($risk,
        'Residual risk 5 is below appetite threshold 12. Cost of further treatment (€50k) exceeds potential loss (€20k).'
    );

    // Determine approval level based on residual risk
    $approvalLevel = $acceptanceWorkflowService->determineApprovalLevel($risk);
    // Residual risk 5 → Approval Level 1 (Manager sufficient)

    $acceptance->setApprovalLevel($approvalLevel);
    $acceptance->setExpiryDate(new \DateTime('+1 year'));  // Annual review

    // Workflow sends notification to approver
    // After approval:
    $acceptanceWorkflowService->approveAcceptance($acceptance, 'Jane Doe - IT Manager');
    $risk->setStatus('Accepted');
}

Compliance Check:

✅ Treatment strategy selected and justified?
✅ Treatment plan documented with actions, timeline, owner?
✅ Residual risk calculated after controls?
✅ Residual risk formally accepted if above tolerance?
✅ Approval obtained at appropriate level?

Clause 6.5: Risk Communication and Consultation

Requirement: Communicate risk info to stakeholders

Implementation:

• RiskReportService->generateExecutiveSummary() - Board-level summary
• RiskReportService->generateRiskRegister() - Detailed register for risk committee
• RiskDashboardService - Real-time dashboards for ongoing monitoring

Clause 6.6: Risk Monitoring and Review

Requirement: Continuous monitoring, regular reviews

Implementation:

// Schedule periodic reviews
$risk->setNextReviewDate(new \DateTime('+6 months'));

// Find risks requiring review
$overdueReviews = $riskService->findRisksRequiringReview(new \DateTime());

// Monitor treatment plan progress
$overduePlans = $treatmentPlanService->getOverduePlans($tenant);

// Check expiring acceptances
$expiringAcceptances = $acceptanceWorkflowService->checkExpiringAcceptances(30);  // Next 30 days

ISO 31000 Framework Integration

Principles (Clause 4)

ISO 31000 defines 8 principles for effective risk management:

1. Integrated - Risk management embedded in all activities

   • Implementation: Multi-tenant risk context, cross-entity relationships (Asset, Control, Process)

2. Structured and Comprehensive - Systematic approach

   • Implementation: 5×5 risk matrix, formal workflows, standardized categories

3. Customized - Aligned to organization's context

   • Implementation: Configurable RiskAppetite per tenant, customizable impact criteria

4. Inclusive - Stakeholder engagement

   • Implementation: Risk owner assignment, approval workflows, communication tools

5. Dynamic - Responsive to change

   • Implementation: Continuous monitoring, incident-driven likelihood adjustment

6. Best Available Information - Based on data and analysis

   • Implementation: Data Reuse from Assets, Incidents, Controls (historical + real-time)

7. Human and Cultural Factors - Considers behavior

   • Implementation: Training requirements tracking, awareness campaigns, role-based access

8. Continual Improvement - Lessons learned

   • Implementation: Incident → Risk validation loop, treatment effectiveness tracking

Framework (Clause 5)

5.3: Design of Framework

ISO 31000 Requirement: Establish risk management framework

Application Implementation:

• Policy: Risk Management module in Admin settings
• Accountability: Risk owners, approval levels, tenant hierarchy
• Integration: Embedded in ISMS (ISO 27001), BCMS (ISO 22301)
• Resources: RiskService, RiskMatrixService, 8 specialized services
• Communication: RiskReportService, dashboards, notifications

5.4: Implementation

ISO 31000 Requirement: Implement risk management throughout organization

Workflow Example:

1. Context (5.4.2):
   - Define RiskAppetite for tenant
   - Configure risk matrix thresholds

2. Integration (5.4.3):
   - Link Risks to Assets (asset-centric approach)
   - Link Risks to BusinessProcesses (BCM integration)
   - Link Risks to Controls (ISO 27001 Annex A)

3. Accountability (5.4.4):
   - Assign risk owners
   - Define approval authority (Level 1-3)

4. Communication (5.4.5):
   - Generate executive summaries
   - Risk dashboards for management
   - Regular risk register reviews

5.5: Evaluation

ISO 31000 Requirement: Monitor framework effectiveness

KPIs in Application:

$dashboard = $riskReportService->generateRiskDashboard($tenant);
// Returns:
// - Total risks by level (Critical, High, Medium, Low)
// - Treatment plan completion rate
// - Residual risk trend (improving/worsening)
// - Risks exceeding appetite
// - Overdue treatments
// - Acceptance expiration rate

5.6: Improvement

ISO 31000 Requirement: Continually improve framework

Feedback Loops:

1. Incident → Risk: Incidents validate or adjust risk assessments
2. Control → Residual Risk: Control effectiveness drives improvement
3. Exercise → Treatment: BC exercises identify gaps in treatment plans
4. Audit → Process: Internal audits improve risk management process

ISO 27001 Integration

Annex A Controls

The application includes all 93 ISO 27001:2022 Annex A controls in the Control entity.

Risk-Control Mapping:

// Link risks to Annex A controls
$risk->addControl($controlA817);  // A.8.17 - Cloud services security

// Suggest relevant controls automatically
$suggestedControls = $treatmentPlanService->suggestControls($risk);
// For category 'Technical', threat 'Data Loss':
// Returns: A.8.13 (Backup), A.8.18 (Configuration management), A.8.24 (Cryptography)

Control Effectiveness Impact:

// Control effectiveness reduces residual risk
$control->setImplementationStatus('Implemented');
$control->setEffectiveness(85);  // 85% effective

// Residual likelihood = inherent × (1 - effectiveness)
// If inherent likelihood = 4, residual = 4 × (1 - 0.85) = 0.6 → 1 (Rare)

Clause 6.1.2: Information Security Risk Assessment

ISO 27001 Requirement: "The organization shall define and apply an information security risk assessment process"

Application Implementation:

• Risk assessment process defined through RiskService + RiskMatrixService
• 5×5 risk matrix meets "reproducible results" requirement
• Asset-centric approach aligns with ISO 27001 Clause 6.1.2(c)

Clause 6.1.3: Information Security Risk Treatment

ISO 27001 Requirement: Define risk treatment process, select controls

Application Implementation:

• RiskTreatmentPlanService implements formal treatment planning
• Control selection from Annex A (93 controls available)
• Residual risk acceptance workflow per 6.1.3(e)
• Statement of Applicability (SoA) links controls to risks

Clause 8.2: Information Security Risk Assessment

ISO 27001 Requirement: Perform risk assessments at planned intervals

Application Implementation:

// Scheduled reviews
$risk->setNextReviewDate(new \DateTime('+6 months'));

// Trigger-based reviews
if ($newIncident) {
    $riskProbabilityAdjustment->adjustLikelihood($risk);  // Re-evaluate
}

// Find overdue reviews
$overdueReviews = $riskService->findRisksRequiringReview(new \DateTime());

Common Risk Management Workflows

Workflow 1: New Risk Identification (ISO 27005 Clause 6.3.1)

User Request Patterns:

• "Help me identify risks for our new cloud migration project"
• "What risks should I consider for our customer database?"
• "Create a risk assessment for Asset X"

Agent Response:

1. Analyze Context - Read Asset/Business Process details
2. Suggest Threat Sources - Based on asset type and category
3. Identify Vulnerabilities - Check control coverage gaps
4. Draft Risk - Pre-fill fields using Data Reuse
5. Link Related Data - Connect to Assets, Controls, Incidents

Example:

User: "Help me assess risks for our customer database (Asset #42)"

Agent Actions:
1. Read Asset #42 details:
   - Type: Database Server
   - Contains: 50,000 customer records (personal data)
   - CIA: C=5, I=5, A=4
   - Monetary Value: €200,000
   - Location: AWS eu-central-1

2. Suggest risks based on asset profile:
   a) Unauthorized access (External threat)
   b) Data breach (GDPR Art. 32 violation)
   c) Ransomware attack (Malware threat)
   d) Accidental deletion (Human error)
   e) Cloud provider outage (Third-party dependency)

3. For Risk (a) - Draft pre-filled risk:
   - Name: "Unauthorized Access to Customer Database"
   - Category: Technical
   - Threat Source: External
   - Vulnerability: "Check current controls for A.5.15 (Access control)"
   - Assets: [Asset #42] (linked)
   - Financial Impact: €200,000 + GDPR fine (€10M or 2% revenue)
   - Compliance Impact: GDPR Art. 32 (Security), Art. 33 (Breach notification)
   - Impact: 5 (Critical) - based on personal data + high value
   - Likelihood: 3 (Possible) - check incident history for similar attacks

4. Present to user for review and confirmation

Workflow 2: Risk Assessment Update (ISO 27005 Clause 6.6)

User Request Patterns:

• "Update risk likelihood based on recent incidents"
• "Recalculate residual risk after implementing MFA"
• "Review risk #15"

Agent Response:

1. Check Incident History - Has new incident data emerged?
2. Check Control Status - Have controls been implemented/updated?
3. Recalculate Scores - Apply Data Reuse services
4. Compare to Appetite - Does risk still meet acceptance criteria?
5. Recommend Actions - Treatment plan updates if needed

Example:

User: "Risk #15 (Phishing Attack) needs review after 3 incidents this month"

Agent Actions:
1. Read Risk #15 current state:
   - Inherent: Impact 4, Likelihood 3, Score 12 (H

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