Information security, cybersecurity and privacy protection — Application of ISO 31000:2018 for organizational privacy risk management

This document provides guidelines for organizational privacy risk management, extended from ISO 31000:2018. This document provides guidance to organizations for integrating risks related to the processing of personally identifiable information (PII) as part of an organizational privacy risk management programme. It distinguishes between the impact that processing PII can have on an individual with consequences for organizations (e.g. reputational damage). It also provides guidance for incorporating the following into the overall organizational risk assessment: — organizational consequences of adverse privacy impacts on individuals; and — organizational consequences of privacy events that damage the organization (e.g. by harming its reputation) without causing any adverse privacy impacts to individuals. This document assists in the implementation of a risk-based privacy program which can be integrated in the overall risk management of the organization. This document is applicable to all types and sizes of organizations processing PII or developing products and services that can be used to process PII, including public and private companies, government entities, and non-profit organizations.

Sécurité de l’information, cybersécurité et protection de la vie privée — Application de l'ISO 31000:2018 au management des risques organisationnels liés à la vie privée

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Status
Published
Publication Date
03-Nov-2022
Current Stage
6060 - International Standard published
Due Date
15-Jun-2024
Completion Date
04-Nov-2022
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ISO/IEC 27557:2022 - Information security, cybersecurity and privacy protection — Application of ISO 31000:2018 for organizational privacy risk management Released:4. 11. 2022
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INTERNATIONAL ISO/IEC
STANDARD 27557
First edition
2022-11
Information security, cybersecurity
and privacy protection — Application
of ISO 31000:2018 for organizational
privacy risk management
Sécurité de l’information, cybersécurité et protection de la vie
privée — Application de l'ISO 31000:2018 au management des
risques organisationnels liés à la vie privée
Reference number
ISO/IEC 27557:2022(E)
© ISO/IEC 2022
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ISO/IEC 27557:2022(E)
COPYRIGHT PROTECTED DOCUMENT
© ISO/IEC 2022

All rights reserved. Unless otherwise specified, or required in the context of its implementation, no part of this publication may

be reproduced or utilized otherwise in any form or by any means, electronic or mechanical, including photocopying, or posting on

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Published in Switzerland
© ISO/IEC 2022 – All rights reserved
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ISO/IEC 27557:2022(E)
Contents Page

Foreword ........................................................................................................................................................................................................................................iv

Introduction .................................................................................................................................................................................................................................v

1 S c op e ................................................................................................................................................................................................................................. 1

2 Nor m at i ve r ef er enc e s ..................................................................................................................................................................................... 1

3 Terms and definitions .................................................................................................................................................................................... 1

4 P rinciples of organizational privacy risk management ............................................................................................ 2

5 F r a mewor k ................................................................................................................................................................................................................. 2

5.1 G eneral ........................................................................................................................................................................................................... 2

5.2 L eadership and commitment ..................................................................................................................................................... 2

5.3 I ntegration.................................................................................................................................................................................................. 3

5.4 Design ............................................................................................................................................................................................................. 3

5.4.1 U nderstanding the organization and its context ................................................................................... 3

5.4.2 A rticulating risk management commitment ............................................................................................. 3

5.4.3 Assigning organizational roles, authorities, responsibilities and

accountabilities ................................................................................................................................................................... 3

5.4.4 A llocating resources ....................................................................................................................................................... 3

5.4.5 E stablishing communication and consultation ....................................................................................... 4

5.5 Implementation ........................................................................................................................................... ........................................... 4

5.6 E valuation ................................................................................................................................................................................................... 4

5 .7 I mpr ovement ............................................................................................................................................................................................ 4

5.7.1 Adapting ..................................................................................................................................................................................... 4

5.7.2 C ontinually improving .................................................................................................................................................. 4

6 R isk management process .........................................................................................................................................................................4

6.1 General ........................................................................................................................................................................................................... 4

6.2 C ommunication and consultation.......................................................................................................................................... 4

6.3 S cope, context and criteria .......................................................................................................................................................... 5

6.3.1 G eneral ........................................................................................................................................................................................ 5

6.3.2 D efining the scope ............................................................................................................................................................. 5

6.3.3 External and internal context ................................................................................................................................ 5

6.3.4 D efining risk criteria ...................................................................................................................................................... 5

6.4 R isk assessment ..................................................................................................................................................................................... 6

6.4.1 G eneral ........................................................................................................................................................................................ 6

6.4.2 R isk identification ............................................................................................................................................................. 6

6.4.3 R isk analysis ........................................................................................................................................... ................................ 9

6.4.4 R isk evaluation.................................................................................................................................................................. 10

6.5 R isk treatment ..................................................................................................................................................................................... 10

6.5.1 General ..................................................................................................................................................................................... 10

6.5.2 S election of risk treatment options ................................................................................................................ 10

6.5.3 Preparing and implementing risk treatment plans .......................................................................... 11

6.6 M onitoring and review ................................................................................................................................................................. 11

6.7 R ecording and reporting ............................................................................................................................................................12

Annex A (informative) PII processing identification .......................................................................................................................13

Annex B (informative) Example privacy events and causes ....................................................................................................15

Annex C (informative) Privacy impact and consequence examples ...............................................................................17

Annex D (informative) Template showing the severity scale for privacy impacts on

individuals ...............................................................................................................................................................................................................18

Bibliography .............................................................................................................................................................................................................................19

iii
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ISO/IEC 27557:2022(E)
Foreword

ISO (the International Organization for Standardization) and IEC (the International Electrotechnical

Commission) form the specialized system for worldwide standardization. National bodies that are

members of ISO or IEC participate in the development of International Standards through technical

committees established by the respective organization to deal with particular fields of technical

activity. ISO and IEC technical committees collaborate in fields of mutual interest. Other international

organizations, governmental and non-governmental, in liaison with ISO and IEC, also take part in the

work.

The procedures used to develop this document and those intended for its further maintenance

are described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria

needed for the different types of document should be noted. This document was drafted in

accordance with the editorial rules of the ISO/IEC Directives, Part 2 (see www.iso.org/directives or

www.iec.ch/members_experts/refdocs).

Attention is drawn to the possibility that some of the elements of this document may be the subject

of patent rights. ISO and IEC shall not be held responsible for identifying any or all such patent

rights. Details of any patent rights identified during the development of the document will be in the

Introduction and/or on the ISO list of patent declarations received (see www.iso.org/patents) or the IEC

list of patent declarations received (see https://patents.iec.ch).

Any trade name used in this document is information given for the convenience of users and does not

constitute an endorsement.

For an explanation of the voluntary nature of standards, the meaning of ISO specific terms and

expressions related to conformity assessment, as well as information about ISO's adherence to

the World Trade Organization (WTO) principles in the Technical Barriers to Trade (TBT) see

www.iso.org/iso/foreword.html. In the IEC, see www.iec.ch/understanding-standards.

This document was prepared by Joint Technical Committee JTC 1, Information technology, Subcommittee

SC 27, Information security, cybersecurity and privacy protection.

Any feedback or questions on this document should be directed to the user’s national standards

body. A complete listing of these bodies can be found at www.iso.org/members.html and

www.iec.ch/national-committees.
© ISO/IEC 2022 – All rights reserved
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ISO/IEC 27557:2022(E)
Introduction

There is a growing interest in and need to address the differences between information security

risk management and privacy risk management for organizations processing personally identifiable

information (PII). Information security risk management and related risk assessments have traditionally

focused on risk to an organization, often using the widely accepted formula of risk = impact x likelihood.

Organizations can use various methods to assess and rank impacts and likelihood, and then determine

a value (qualitative or quantitative) for organizational risk that can be used to prioritize risk mitigation.

Conversely, privacy assessments have primarily been focused on impacts on individuals, such as those

identified through a privacy impact assessment. Although privacy assessments may prioritize the

impacts on an individual’s privacy, it is nonetheless necessary to consider how such privacy impacts on

an individual can contribute to overall organizational risk. Doing so can help organizations build trust,

implement technical and organisational measures, improve communication and support compliance

with legal obligations, while avoiding negative impacts to reputation, bottom lines, and future prospects

for growth. Privacy events may have consequences for the organization, even in the absence of adverse

impacts on PII principals.

This document offers a framework for assessing organizational privacy risk, with consideration of the

privacy impact on individuals as a component of overall organizational risk. It extends the guidelines

of ISO 31000:2018 to include specific considerations for organizational privacy risk and supports the

requirement for risk management as required by privacy information management systems (such as

ISO/IEC 27701).

This document is intended to be used in connection with ISO 31000:2018. Whenever this document

extends the guidance given in ISO 31000:2018, an appropriate reference to the clauses of ISO 31000:2018

is made followed by privacy-specific guidance. The clause structure of ISO 31000:2018 is mirrored in

this document and amended by sub-clauses if needed.
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INTERNATIONAL STANDARD ISO/IEC 27557:2022(E)
Information security, cybersecurity and privacy
protection — Application of ISO 31000:2018 for
organizational privacy risk management
1 S cope

This document provides guidelines for organizational privacy risk management, extended from

ISO 31000:2018.

This document provides guidance to organizations for integrating risks related to the processing

of personally identifiable information (PII) as part of an organizational privacy risk management

programme. It distinguishes between the impact that processing PII can have on an individual with

consequences for organizations (e.g. reputational damage). It also provides guidance for incorporating

the following into the overall organizational risk assessment:
— organizational consequences of adverse privacy impacts on individuals; and

— organizational consequences of privacy events that damage the organization (e.g. by harming its

reputation) without causing any adverse privacy impacts to individuals.

This document assists in the implementation of a risk-based privacy program which can be integrated

in the overall risk management of the organization.

This document is applicable to all types and sizes of organizations processing PII or developing products

and services that can be used to process PII, including public and private companies, government

entities, and non-profit organizations.
2 Normat ive references

The following documents are referred to in the text in such a way that some or all of their content

constitutes requirements of this document. For dated references, only the edition cited applies. For

undated references, the latest edition of the referenced document (including any amendments) applies.

ISO 31000:2018, Risk management — Guidelines
ISO/IEC 29100, Information technology — Security techniques — Privacy framework

ISO/IEC 27000, Information technology — Security techniques — Information security management

systems — Overview and vocabulary
3 Terms and definitions

For the purposes of this document, the terms and definitions given in ISO 31000, ISO/IEC 29100 and

ISO/IEC 27000 and the following apply.

ISO and IEC maintain terminology databases for use in standardization at the following addresses:

— ISO Online browsing platform: available at https:// www .iso .org/ obp
— IEC Electropedia: available at https:// www .electropedia .org/
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ISO/IEC 27557:2022(E)
3.1
privacy information management system
PIMS

information security management system which addresses the protection of privacy as potentially

affected by the processing of personally identifiable information (PII)

[SOURCE: ISO/IEC 27701:2019, 3.2 modified — the abbreviated term "PII" is expanded as "personally

identifiable information".]
3.2
privacy event

occurrence or change of a particular set of circumstances related to personally identifiable information

(PII) processing that can cause a privacy impact (3.3) or consequence
3.3
privacy impact

element that has an effect on the privacy of a personally identifiable information (PII) principal and/or

group of PII principals

Note 1 to entry: The privacy impact could result from the processing of PII in conformance or in violation of

privacy safeguarding requirements.
[SOURCE: ISO/IEC 29134:2017, 3.6, modified — "anything" replaced by "element".]
3.4
consequence
outcome of an event affecting organizational objectives

[SOURCE: ISO 31000:2018, 3.6, modified — “organizational” added and notes to entry removed]

4 Principles of or ganizational privacy risk management

The guidance in ISO 31000:2018, Clause 4 and the following additional guidance applies.

For organizational privacy risk management, PII principals should be included as stakeholders, and the

actual or potential adverse impact on them should be included when considering risks. Additionally,

the organization should consider the potential negative effect on the opinions and attitudes of these

stakeholders related to the organization should these adverse impacts occur.

Organizations should identify the norms, societal values, and legal expectations related to individuals’

privacy given their cultural context(s). Privacy is a broad and shifting concept that can be filtered

through cultural diversity and individual differences. These cultural factors can inform the

identification, evaluation, and treatment of privacy risks.
5 Framework
5.1 General
The guidance in ISO 31000:2018, 5.1 applies.
5.2 Leadership and c ommitment

The guidance in ISO 31000:2018, 5.2 and the following additional guidance applies.

Top management should be aware of privacy issues in order to successfully incorporate privacy

considerations into an overall organizational risk management process. This should include awareness

of such topics as:
— privacy regulations and laws applicable to the organization;
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ISO/IEC 27557:2022(E)
— privacy obligations the organization has to individuals;
— how processing PII can impact individuals;

— unique concerns, risks, vulnerabilities, impacts, and organizational consequences related to privacy

and processing PII.

Where an organization implements a privacy information management system (PIMS) as specified in

ISO/IEC 27701, the organization should be aware of and committed to integrating the organizational

privacy risk management activities related to the relevant aspects of the PIMS.
5.3 Integration

The guidance in ISO 31000:2018, 5.3 and the following additional guidance applies.

Top management and oversight bodies should ensure that organizational privacy risk management

is integrated into the organization’s structure, including people, processes, and technology. The

integration depends on the operating processes of the organization. Where an organization implements

a PIMS, the organizational privacy risk management process should be integrated into the relevant

aspects of the PIMS.
5.4 Design
5.4.1 Understanding the organization and its context

The guidance in ISO 31000:2018, 5.4.1 and the following additional guidance applies.

When an organization processes PII, or is developing products or services that process PII, the

organization should assess its role related to processing PII (e.g. controller, processor, joint controller,

manufacturer, software developer, provider of products that process PII).

Understanding the organization’s role relative to processing PII is critical for the effective design of

a risk management framework, including accurately identifying and treating privacy risks to the

organization.

Where an organization implements a PIMS, this context should align with the context of the management

system (ISO/IEC 27701:2019, 5.2.1).
5.4.2 Articulating risk management commitment
The guidance in ISO 31000:2018, 5.4.2 applies.

5.4.3 Assigning organizational roles, authorities, responsibilities and accountabilities

The guidance in ISO 31000:2018, 5.4.3 and the following additional guidance applies.

Top management and oversight bodies should:

— emphasize that risk management related to PII processing is a core responsibility;

— identify individuals who have the accountability and authority to manage risks related to PII

processing;

— identify individuals who have the accountability and authority to manage risks related to privacy

events that have direct consequences for the organization, even when there are no impacts on PII

principals, employees or other stakeholders.
5.4.4 Allocating resources

The guidance in ISO 31000:2018, 5.4.4 and the following additional guidance applies.

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ISO/IEC 27557:2022(E)

When allocating resources for organizational privacy risk management, top management and oversight

bodies should consider needs specific to privacy (e.g. internal or external resources with specialized

knowledge, skills, abilities and training on privacy issues).
5.4.5 Establishing communication and consultation
The guidance in ISO 31000:2018, 5.4.5 applies.
5.5 Implementation
The guidance in ISO 31000:2018, 5.5 applies.
5.6 Evaluation
The guidance in ISO 31000:2018, 5.6 applies.
5.7 Improvement
5.7.1 Adapting
The guidance in ISO 31000:2018, 5.7.1 applies.
5.7.2 Continually improving
The guidance in ISO 31000:2018, 5.7.2 applies.
6 Risk management process
6.1 General
The guidance in ISO 31000:2018, 6.1 applies.
6.2 C ommunication and consultation

The guidance in ISO 31000:2018, 6.2 and the following additional guidance applies.

In the context of organizational privacy risk management processes, the following are examples of

groups or individuals that can be consulted/communicated with:
— privacy experts;
— persons in charge of privacy matters;

— product and system designers and developers, for goods and services that handle PII;

— PII processing system owners;

— officers or management responsible for PII processing activities and decisions;

— supervisory authorities;

— PII principals or groups of PII principals (e.g. organizations or associations).

Some jurisdictions mandate particular types of consultations for some instances of PII processing, such

as consultation of supervisory authorities. In such cases, the organization should identify its obligations

for consultations and demonstrate that it complies with them in a timely manner.
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ISO/IEC 27557:2022(E)
6.3 S cope, context and criteria
6.3.1 General
The guidance in ISO 31000:2018, 6.3.1 applies.
6.3.2 Defining the scope

The guidance in ISO 31000:2018, 6.3.2 and the following additional guidance applies.

The scope of the organizational privacy risk management process should include:
— PII processing;
— products and services that can be used to process PII.

Where an organization implements a PIMS, the scope of the risk assessment should reflect that of the

defined scope of the management system (ISO/IEC 27701:2019, 5.2.3).
6.3.3 External and internal context

The guidance in ISO 31000:2018, 6.3.3 and the following additional guidance applies.

Organizational factors can be a source of risk and can have consequences for the organization without

adversely affecting individuals (e.g. a public statement about privacy from top management that may

affect perceptions of the organization).
6.3.4 Defining risk criteria

The guidance in ISO 31000:2018, 6.3.4 and the following additional guidance applies.

The organization should define the risk criteria that guide the outcomes of the risk assessment results.

This may include what types of measures are used (qualitative vs. quantitative), the formula or methods

used to determine the risk, and the management actions for levels of risk.

In relation to organizational privacy risk, these criteria should include how privacy impact on

individuals will be defined and measured, as well as how the privacy impact on individuals' factors into

the organization’s overall risk calculation. Furthermore, risk-based assessments of factors influencing

the organization directly, due to adverse privacy events that do not have impacts on PII principals,

should also be considered (Annex B provides some examples of privacy events in Table B.1 and causes

of privacy events in Table B.2). Potential criteria to be defined for organizational privacy risk should

include:
— how organizational consequences will be defined and measured;
— how privacy impact on individuals will be defined and measured;
— positive or negative consequences for the organization;
— positive and negative privacy impacts to PII principals.

In order to help with the decision process, the risk evaluation criteria should consider the necessary

balance between:
— opportunities for the organization;

— risks to the organization (consequences regarding the following reputation, fines, trials);

— risks to PII principals (privacy impacts on physical, material, non-material aspects).

For example, there can be a business opportunity that leads the organization to process new PII, with a

very low risk for PII principals, but a very high reputational risk to the organization.

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ISO/IEC 27557:2022(E)
Table C.1 provides examples of privacy impacts to individuals.

NOTE ISO 31000 notes that risk is usually expressed in terms of risk sources, potential events, their

consequences and their likelihood. In this document, “consequences” refers to consequences to the organization,

while “privacy impact” refers to the impact on PII principals.
6.4 Risk assessment
6.4.1 General
The guidance in ISO 31000:2018, 6.4.1 applies.
6.4.2 Risk identification
6.4.2.1 General

The guidance in ISO 31000:2018, 6.4.2 and the following additional guidance applies.

There are a number of approaches for identifying risks in an organization. Two common ones are

the event-based approach and the asset-based approach. Organizations can utilize elements of both

approaches to fit their operational context. 6.4.2 outlines the elements necessary for risk identification

related to the processing of PII, as well as details on the event-based and asset-based approaches.

6.4.2.2 Identification of PII processing

The organization should identify PII processing that falls within the scope of the risk management

process as defined in 6.3.2, including potential PII processing by products and services. Understanding

PII processing and its relative criticality and value is integral to identifying risks and assessing the

privacy impact on individuals and the consequences for the organization.

Organizational privacy risk management has the following considerations when identifying PII

processing:

a) PII processing activities (or types of PII processing activities) and PII processed (or types of PII);

b) the assets on which they rely;

c) categories of individuals whose PII is being processed (e.g. customers, employees);

d) purposes of the PII processing;
e) individuals or personnel processing PII;
f) role of internal and external entities engaged in the PII processing.

For evaluation of PII processing and the relation to privacy impact and consequences, see 6.4.2.7 and

6.4.3.3. For examples of considerations related to the identification of PII processing, see Annex A.

6.4.2.3 Event-based approach
6.4.2.3.1 General

An event-based approach to identifying risks is a high-level examination of risk sources and the potential

scenarios that can play out based on those risk sources. Scenarios should be built by identifying the

different paths, within the system, that risk sources can use to reach the PII processing, the PII, and

their target objectives.
© ISO/IEC 2022 – Al
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