Conceptual framework on information security risk management in information technology outsourcing / Nik Zulkarnaen Khidzir, Noor Habibah Arshad and Azlinah Mohamed

Data security and protection are seriously considered as information security
risk for information asset in IT outsourcing (ITO). Therefore, risk management
and analysis for security management is an approach to determine which
security controls are appropriate and cost effective to be implemented across
organization for ITO to secure data/information asset. However, previous
established approach does not extensively focus into information security
risk in ITO. For that reason, a conceptual framework on information security
risk management in IT outsourcing (ISRM-ITO) will be introduced throughout
this paper. An extensive amount of literature review on fundamental concepts,
theoretical background and previous findings on information security risk
management and ITO had been conducted. Throughout the review, theoretical
foundation and the process that lead to success in managing information
security risk ITO were identified and these findings become a key component
in developing the conceptual framework. ISRM-ITO conceptual framework
consists of two layers. The first layer concentrates on information security
risks identification and analysis before the decision is made to outsource it.
The second layer will cover the approach of information security risk
management which is used to analyze, mitigate and monitor risks for the rest
of the ITO lifecycle. Proposed conceptual framework could improve
organization practices in information security study for IT outsourcing through
the adoption of risk management approach. Finally, an approach to determine
a cost effective security control for information security risk can be
implemented successfully in the ITO cycle.