Understanding Risk Management Framework And How Does It Impact DoD Contractors?

Compliance is a difficult task, partly due to the reality that technology advances and agency/vendor connections become increasingly intertwined. As the complexities of the supply chain for the Department of Defense (DoD) grow, so does the requirement for the DoD contractors and firms working in the DoD supply chain to perform their operations, focusing on not just following laws but also establishing effective security policies and infrastructure.

What is a risk, and why should businesses think about risk management?

The term “risk” is frequently used without any explanation or discussion. We all have a broader understanding of risk, and in many situations, that’s enough for day-to-day work.

Risk is a solid practice in cybersecurity, particularly inside the DoD supply chain. Simply put, “risk” refers to the degree of vulnerability your IT infrastructure has to future attacks or threats. When introducing regulations or controls, various variables must be considered, including:

  • Advantages of security
  • Obligations of compliance
  • Costs of doing business
  • Deployment time and effort
  • Longevity and tenacity
  • Short- and long-term company objectives

Anyone who has managed a business knows that merely keeping track of these goals can be a full-time job in and of itself. However, when you include the complexity of current IT systems, you’ve got yourself a far more difficult challenge on your hands. As the usage of third-party suppliers and digital network technologies grows, so does the risk of new and unanticipated security flaws. As a result, eliminating these risks using an essential compliance audit checklist becomes practically tricky.

This is where risk management enters the picture. Risk management is a cybersecurity discipline that encompasses the technological, administrative, and physical safeguards in place in a particular IT system. It aims to detect possible vulnerabilities in a broader framework of risk appetite.

The risk may be used in a variety of circumstances in this topic. 

Here are a few examples of these scenarios:

Security Vulnerabilities Caused a Breach: A breach is a real possibility when a collection of security measures isn’t up to the duty of guarding against definite tasks. Even systems capable of dealing with increasingly sophisticated threats might have blind spots due to interoperability concerns or configuration constraints.

Internal Threats and Social Engineering: Untrained staff in DoD companies are sometimes our weakest links, and savvy hackers target them. Simple hacks or phishing attempts might endanger admission to an otherwise secure system in authentication systems that do not use biometrics for identity validation.

Authorized Access Allows Hackers to Gain Access to Unauthorized Systems: Permission is a necessary security regulation for most DoD regulatory standards: somebody with access to one part of a network can break into restricted areas with guarded or classified data if they thwart robust authorization processes.

The simple fact of risk management is that not all in a particular company can be wholly protected while preserving the flexibility, accessibility, and dependability required for government and corporate applications.

The National Institute of Standards and Technology (NIST) published NIST Special Publication 800-37, which contains the blueprint for a technology-agnostic Risk Management Framework to tackle this challenge in the government service area (RMF).