Factor Analysis of Information Risk (FAIR)

What is fair?

FAIR (Factor Analysis of Information Risk) is a threat modeling framework designed to quantify risk in information security. It provides a structured and consistent approach to understanding, analyzing, and measuring information risk.

Here are the key components and concepts of the FAIR framework:

Key Components

1. Risk: The probable frequency and probable magnitude of future loss.

2. Threat Event Frequency (TEF): The probable frequency, within a given timeframe, that a threat agent will act against an asset.

3. Vulnerability (Vuln): The probability that a threat event will result in a loss.

4. Threat Capability (TCap): The probable level of force that a threat agent is capable of applying against an asset.

5. Control Strength (CS): The strength of controls that protect the asset, measured relative to the threat agent’s capability.

6. Loss Event Frequency (LEF): The probable frequency, within a given timeframe, that a threat event will result in a loss.

7. Loss Magnitude (LM): The probable magnitude of loss resulting from a loss event.

8. Primary Loss (PL): Losses directly associated with the asset being compromised.

9. Secondary Loss (SL): Losses resulting from secondary stakeholder reactions to the primary loss event.

Process Overview

1. Identify and Define Assets: Determine the assets at risk and their value to the organization.

2. Identify and Define Threats: Identify the threat agents that could potentially act against the assets.

3. Evaluate Control Strength: Assess the effectiveness of existing controls in protecting the assets.

4. Evaluate Loss Magnitude: Estimate the potential loss magnitude if a threat event were to occur.

5. Quantify Risk: Combine the estimates of threat event frequency, vulnerability, and loss magnitude to quantify the overall risk.

Benefits of FAIR

• Quantitative Approach: Provides a quantitative measure of risk, which can be more actionable and defensible than qualitative assessments.

• Consistency: Offers a structured methodology, reducing subjectivity and improving the consistency of risk assessments.

• Decision Support: Enhances decision-making by providing clear and understandable risk metrics.

• Communication: Improves communication about risk among stakeholders by using a common framework and terminology.

FAIR is widely used in organizations looking to improve their risk management processes, especially those in sectors with high regulatory and compliance requirements..

Resources

Books

• "Measuring and Managing Information Risk: A FAIR Approach" by Jack Freund and Jack Jones

  • This book provides a comprehensive introduction to the FAIR framework, offering practical advice on how to apply it in real-world scenarios.

Training and Certification

• FAIR Institute

  • The FAIR Institute offers various training programs, including introductory courses and certification programs such as the FAIR Risk Analyst (FAIR-R) certification.

  • Website: FAIR Institute

• RiskLens Academy

  • RiskLens, a company that offers FAIR-based software solutions, provides training through the RiskLens Academy, which includes workshops and online courses on FAIR.

  • Website: RiskLens Academy

Software Tools

• RiskLens

  • RiskLens is a software platform that operationalizes the FAIR model, helping organizations conduct quantitative risk analysis.

  • Website: RiskLens

• Open FAIR Risk Analysis Tool

  • The Open Group provides an Open FAIR Risk Analysis Tool to assist with conducting risk assessments based on the FAIR framework.

  • Website: The Open Group

Online Communities and Forums

• FAIR Institute Community

  • The FAIR Institute offers a community platform where professionals can discuss FAIR-related topics, share experiences, and network with peers.

  • Website: FAIR Institute Community

Whitepapers and Case Studies

• FAIR Institute Whitepapers

  • The FAIR Institute publishes whitepapers and case studies that provide insights into the application of FAIR in different industries.

  • Website: FAIR Institute Whitepapers

Online Articles and Blogs

• RiskLens Blog

  • The RiskLens blog regularly publishes articles on FAIR, including tips, use cases, and updates on the latest developments in the field.

  • Website: RiskLens Blog

• FAIR Institute Blog

  • The FAIR Institute also maintains a blog with contributions from industry experts and practitioners.

  • Website: FAIR Institute Blog

These resources should help you get started with understanding and implementing the FAIR framework in your organization.