NIST Risk Management Framework: The 7 Steps Explained 

The NIST Risk Management Framework provides a comprehensive approach for managing network infrastructure and operations risks. Published by the United States government, it provides a structured methodology for identifying, assessing, prioritizing, and mitigating risks related to networking technologies and activities within an organization.   

In this article, we understand what comprises the NIST risk management framework and how you can effectively implement it for your organization. 

What is the NIST Risk Management Framework?

NIST risk management framework is a structured approach to strengthen risk management processes for secure operations. It integrates security, privacy and supply chain risk management for development of trustworthy information systems throughout their lifecycle

The framework provides a 7-step, repeatable and comprehensive process and refers to several NIST standards and guidelines to meet FISMA requirements.

Why do organizations need a Nist risk management framework?

Organizations need a NIST risk management framework as it provides a standardized approach to identifying and mitigating risks. The consistent practices lead to efficient risk management and helps save costs associated with costly breaches.

NIST RMF also provides a better understanding of the information system risks and enables executive leaders to make well-informed decisions. This gradually enhances an organization’s ability to withstand risks and helps it move towards operational resilience.

How to implement the NIST risk management framework

NIST RMF describes seven key steps to manage risks. These include:

1. Prepare – 

In the first step, you organize the basic functions across the organizational levels to manage information security and privacy risks. 

Risk management roles: Identify all key roles and responsibilities for each process, such as authorizing officer, chief acquisition officer, chief information officer, and more. Ensure there is no conflict while assigning.  

Risk management strategy: Develop a strategy to manage organizational risk based on the tolerance level. Define the strategies, policies, procedures, and processes to align with the supply chain risk management considerations. 

Risk assessment: Assess security and privacy risks across the organization using results from continuous monitoring and strategic risks. Consider risks from information systems, external systems, enterprise architecture, and business processes. 

Control baselines and security framework: Create a list of security control baselines custom to the organization’s requirements. You can add or remove controls to adjust to the organization’s requirements in edge cases, such as addressing specific security risks or business needs. 

Common control identification: Identify common organizational systems controls from the NIST 800 53 control family. Controls include physical, environmental, system boundaries, monitoring, policies, acquisition, audit log, identity management, and compliance management. These controls may differ based on hosting location, system architecture, and organizational structure. 

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2. Categorize

This step assesses how the loss of confidentiality, integrity, and availability of information affects business operations, individuals, and other organizations. 

System description: System description entails outlining the features and attributes of your systems. The level of detail should correspond to the security category and risk assessment. This can include details such as system name, identifier, version release number, manufacturer details, location, purpose, the business processes it supports, and other relevant information.

Security categorization: Security categorization involves classifying the system according to either FIPS 200 for a single impact level or CNSSI 1253 for assigning impact scores based on confidentiality, availability, and integrity. The selection of security controls is then determined based on the results of these categorizations.  

Security categorization review: This is when a senior privacy official reviews and approves the security categorization of systems containing PII (personally identifiable information). This decision must be consistent with business goals and functions and the organization’s risk management strategy. 

3. Select

This step aims to identify and document the relevant controls that are required to protect information systems and mitigate security risks.

Control selection: You can select controls based on either of the two approaches – baseline (predefined control sets) or organization generated (the organization has its individual selection process rather than using predefined ones). Irrespective of which one you end up using, you must develop security and privacy requirements using a life cycle-based systems engineering process. 

Control tailoring: Once you have selected the right control baselines, you can customize them to align with business goals, risks, potential threats, and risk tolerance. This includes identifying and allocating common controls within the baselines, selecting compensating controls, assigning values to control parameters, and providing implementation guidance. 

Control allocation: Designate controls as technical or human elements responsible for managing security and privacy. The allocated controls should align with the organization’s enterprise, security, and privacy architecture. Only assign controls with specific security or privacy roles if the system truly needs them.

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4. Implement

Here, you translate the plans to actions. The selected controls are implemented and document its details. 

Control implementation: Implement the security and privacy controls per the organization’s architecture. Establish and implement the mandatory configuration settings in keeping with federal government guidelines and organizational policies. 

Update implementation data: Update the control implementation plan if it changes during the implementation process. The updated documentation should include the revised descriptions, expected behavior, and expected outcomes. 

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5. Assess

Once your controls are up and running, the next step is to evaluate their effectiveness – if it is correctly implemented, if it’s functioning as intended, and actually meeting the requirements. 

Select assessor: Select a control assessor based on their skills and technical expertise to assess programs and controls. Organizations can conduct self-assessments or opt for an independent assessor. 

Assessment plan: Control assessors should develop a security and privacy assessment strategy based on the implementation data, program management control, and common control.  It may be a good idea to develop an integrated assessment plan. However, remember that the authorizing official must review these plans to ensure consistency with the security and privacy requirements and fit the budget. 

Control assessment: Control assessments are conducted in the early stages of the system development life cycle (SDLC) to detect deficiencies immediately and ensure correct implementation. Assessing controls throughout the SDLC is recommended for iterative development processes. You can resume assessment results to reduce cost and boost efficiency.

Note: It’s important to assess whether the chosen security controls are working properly, manage control deficiencies to reduce risks and vulnerabilities, and conduct regular checks to ensure compliance. 

6. Authorize

Developed to ensure accountability, the sixth step requires a senior official to determine the risk tolerance level of the organization is acceptable. 

Authorization package: Authorization packages include security and privacy plans, assessment reports, deadlines, and summaries. Officials must review packages containing PII to ensure compliance and make risk decisions. You can automate the process of preparing and managing the contents of the authorization package. 

Risk analysis and determination: The authorities collaborate to analyze the information in the authorization package to determine the level of risk. If the system maintains ongoing authorization, the responsibility for analyzing security and privacy data to assess the system’s status remains the same.

Risk response: Once analyzed, the next step is to choose the right course of action to mitigate it. Existing assessment results may help to determine whether to accept or mitigate the risk. 

7. Monitor

As the name suggests, the purpose of the final step is to stay informed about the functioning and controls and overall posture to make informed decisions on risks. 

System and environment changes: Address system and environmental changes using a structured process to manage, control, and comply. Monitor unauthorized and authorized changes impacting the system’s posture to take appropriate actions.

Ongoing assessments: Regularly assess control effectiveness as part of the continuous monitoring program. The results of these can be reused to optimize costs. Automating the control assessments could also be an effective way to do this. 

You can simplify the process by leveraging integrating risk management with Sprinto.

• The platform enables you to choose the applicable risks from the risk library or add custom risks unique to your business
• It enables you to score these risks based on likelihood and impact and lets you choose the risk response strategies– accept, reject or transfer
• It also guides you on mitigation steps or controls that must be implemented

• You can manage all risk assessments at a centralized place and senior management can review these periodically

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How much does it cost to perform NIST risk assessment?

If the organization chooses a third-party service provider, the cost of NIST risk assessments can range from $5000 to $15000. However, setting up this process internally can be more expensive, costing over $30000. This is due to the costs of training, resources required, and maintenance of the mechanisms set up.

However, the costs can vary based on several factors. These include size of the organization, scope of the assessment, the choice of tools and whether or not there are broader compliance requirements for the organization.

Manage SDLC risks with rigor and precision

NIST RMF focuses on constant visibility and recommends shifting to automotive capabilities. With Sprinto, you can eliminate the burden of manually assessing control requirements, risk management, and more. This includes a one-stop platform with benefits like: 

• Single dashboard providing a 360° granular view of NIST risks and controls
• Pre-built NIST policy templates and training modules with in-app acknowledgments 
• Real-time compliance through automated checks and workflows
• Continuous, comprehensive, and accurate monitoring of your posture

We know getting ready for a risk assessment is unique to your needs. However, the goal is to evaluate your current security setup and create a plan for making it better. Sprinto, a compliance automation platform that has the power to assess your security controls continually, is here to help you with this. 

You can rely on Sprinto for practical security guidance and automated support. Feel ready to take the cybersecurity plunge? Book a demo with one of our experts. 

FAQs

Who is the NIST risk management framework for?

The NIST risk management program is a framework for federal agencies or individuals responsible for conducting security or privacy assessments to manage, operate, design, maintain, and assess privacy and security risks in information systems. 

Who is responsible for the implementation of risk management activities?

Several senior official roles are responsible for NIST risks and baseline security controls. These may include Senior Accountable Official for Risk Management or Risk Executive (Function); Senior Agency Information Security Officer; and Senior Agency Official for Privacy. 

Supporting roles in this domain can also involve the Chief Information Officer; Mission or Business Owner; Authorizing Official or Authorizing Official Designated Representative. 

What is the NIST AI risk management framework?

The AI Risk Management Framework (AI RMF) provides a structured approach to risk management that helps to identify, assess, and mitigate cybersecurity risks associated with the development, deployment, and operation of artificial intelligence systems. This helps to ensure accountability, transparency, and trustworthiness in AI applications.