An Approach to Select Cost-Effective Risk Countermeasures Exemplified in CORAS

Abstract: Risk is unavoidable in business and risk management is needed amongst others to set up good security policies. Once the risks are evaluated, the next step is to decide how they should be treated. This involves managers making decisions on proper countermeasures to be implemented to mitigate the risks. The countermeasure expenditure, together with its ability to mitigate risks, is factors that affect the selection. While many approaches have been proposed to perform risk analysis, there has been less focus on delivering the prescriptive and specific information that managers require to select cost-effective countermeasures. This paper proposes a generic approach to integrate the cost assessment into risk analysis to aid such decision making. The approach makes use of a risk model which has been annotated with potential countermeasures, estimates for their cost and effect. A calculus is then employed to reason about this model in order to support decision in terms of decision diagrams. We exemplify the instantiation of the generic approach in the CORAS method for security risk analysis.