2024 brought some harsh cybersecurity lessons for everyone working in U.S. government cybersecurity. One major wake-up call came when Chinese hackers broke into several U.S. telecom networks in an attack dubbed Salt Typhoon.  

Then came an unexpected hit. CrowdStrike, which was relied on by many federal agencies for endpoint security, threat intelligence, and cyberattack response services, experienced a massive outage.  

These IT risks (both inherent and residual) reinforce the importance of strong IT risk management programs for agencies. This guide breaks down how to build such a program. 

The Evolving Landscape of Risk Management 

Federal agencies are navigating a complex risk landscape shaped by growing cyber threats, shifting regulations, and advancing technology. The GAO highlighted government organizations’ challenges, including a lack of proper strategic direction on cybersecurity, poor infrastructure security, and poor data protection. 

Here are five additional challenges set to continue in 2025: 

• Third-party vendors, security gaps, and supply chain vulnerabilities 

• Critical infrastructure exposure despite increased protection 

• Advanced nation-state hackers targeting federal systems 

• Limited cybersecurity talent and aging legacy systems 

• Expanded attack surface from hybrid work environments 

With the average data breach in the U.S. now costing $9.48 million, proactive IT risk enables Federal agencies to stay ahead of emerging threats. 

What is Risk Management in IT? 

IT risk management is all about identifying, understanding, and addressing the threats that could disrupt your organization’s technology systems. With our reliance on digital tools growing daily, taking a proactive approach to IT risk management ensures you’re prepared for whatever comes your way—a cyberattack, a data breach, or an unexpected system failure. 

When done right, IT risk management helps with the following:  

• Protect Sensitive Data: Safeguard critical information, reduce the risk of leaks, and ensure compliance 

• Ensure Business Continuity: Identify risks that could disrupt operations proactively 

• Mitigate Financial Losses: Prevent costs from breaches, lawsuits, and regulatory fines 

• Strengthen Stakeholder Trust: Build confidence among stakeholders by demonstrating commitment to risk management 

• Adapt to Regulatory Demands: Risk management frameworks like NIST simplify compliance and audit readiness 

What is IT risk management? It ensures organizations can navigate evolving threats while maintaining trust and meeting operational and regulatory expectations. To achieve these benefits, agencies can conduct effective risk evaluations by following the steps in the NIST Risk Assessment Report. 

Steps to Implementing an IT Risk Management Program 

Implementing an information technology risk management can seem daunting. To simplify the process, start by asking key questions: 

• What are the specific risks to your agency’s critical systems and data? 

• Which compliance requirements and standards (e.g., NIST, FedRAMP) must your agency adhere to? 

• Do you have the resources and expertise in-house, or will you need external support? 

How you answer these questions will guide the development of your program and help you select a framework that aligns with your agency’s goals, resources, and compliance needs. Here are the key steps to help you get started: 

Step 1: Define Objectives and Scope 

Every federal IT risk program starts with precise mission alignment. For example, the Department of Energy might prioritize protecting critical infrastructure control systems while the IRS focuses on taxpayer data security.  

Federal agencies manage many priorities, making it crucial to map systems, data, and processes early. To start, identify your key stakeholders, including leadership and system administrators. This scoping step sets clear boundaries and ensures resources are focused where they’re needed most. 

Step 2:  Establish Governance and Accountability 

Federal agencies need a transparent chain of command for risk decisions for clear governance. This typically means establishing a Risk Executive Function, as outlined in NIST frameworks, with representatives from IT, security, legal, and program offices.  

Documenting roles and responsibilities fosters transparency and ensures all stakeholders understand their roles. Regular governance meetings should also be conducted to review risk metrics, allowing strategies to be adjusted based on changing threats.  

Step 3: Identify Risks 

Take stock of your systems, applications, and devices to get a clear picture of your IT infrastructure. Check audit logs for unusual activity and look for technical weaknesses in your networks, endpoints, and cloud systems. Evaluate risks from within, like user access issues or misconfigurations, as well as external threats, such as contractors with access to your systems. Use FISMA benchmarks, vulnerability scans, and penetration tests to pinpoint and prioritize gaps. 

Step 4: Assess and Analyze Risks 

Once you’ve identified risks, assess how likely they are to occur. And how they could impact your agency’s operations. Group risks by severity, the systems they affect, and any regulatory implications. For example, a vulnerability in a public-facing system likely carries more risk than an internal IT issue. This evaluation gives you peace of mind that resources are directed where needed most. 

To address these vulnerabilities, agencies can utilize tools and strategies outlined in the NIST Risk Assessment Report to identify and mitigate risks proactively. 

Step 5: Develop Risk Mitigation Strategies 

With risks prioritized, specific control plans should be developed following the federal Risk Management Framework (RMF). Each control should map back to NIST SP 800-53 requirements and your agency’s security baselines.  

For high-risk systems, there should be multiple layers of protection in the form of technical control (such as encryption and firewalls), operational control (training and audits), and management controls (policies and response plans). Select controls based on your agency’s resource constraints, as well as your agency’s operational needs. 

Step 6: Implement Monitoring Mechanisms 

Introduce continuous reporting procedures to observe shifts in risk elements surrounding your agency. Security Information and Event Management (SIEM) platforms offer real-time insights, helping you catch risks early and address them quickly.  

Step 7: Review and Refine 

The threat landscape evolves constantly, as should your IT risk management program. Schedule regular reviews of your program’s effectiveness through internal assessments and independent third-party evaluations. Update your risk assessments as new threats emerge or agency missions change. Share lessons learned through federal information-sharing programs like US-CERT to ensure your defenses stay current. 

How to Use IT Risk Scoring to Assess, Quantify, and Prioritize Risks 

Figuring out how much risk your IT systems face can feel overwhelming, but IT risk scoring offers a clear path. It helps you assess risks based on their severity and likelihood of occurrence. 

How does it work? 

Step 1: Identify Risks 

First, you need to list everything that could go wrong with your federal agency’s IT. To do this, look at past incidents, check for known system weaknesses, and compare your security to established standards like FISMA. This will give you a solid starting point.  

Include internal risks, such as misconfigurations, and external risks, like vulnerabilities from third-party vendors. Document everything in your agency’s security reports, following the NIST Risk Management Framework and your agency’s specific guidance. This thorough inventory is the foundation of your risk scoring. 

Step 2: Start Scoring the Risks 

Although the FedRAMP and NIST Risk Management Framework (RMF) are essential for compliance, they primarily focus on authorization and security control selection. Instead, align your scoring with FIPS 199 impact levels and agency risk tolerance. This supplementary scoring system helps agencies make day-to-day operational decisions about risk management within those larger frameworks.  

Score each risk on: 

• Mission impact (1-5) 

• Data sensitivity (1-5) 

• Exploitation likelihood (1-5) 

• Control effectiveness (1-5) Multiply these factors for a composite risk score. Use traffic light colors (red/yellow/green) in risk matrices for clear executive communication. 

Lastly, use tools like heatmaps or risk matrices to help stakeholders understand your agency’s overall risk profile. 

Step 3: Prioritize Risks 

Focus on risks that could compromise classified data or disrupt essential government services.  

You can prioritize risks based on: 

• Risk score threshold (e.g., >60 requires immediate action) 

• Federal compliance requirements 

• Available resources and capabilities  

Also, remember to create a prioritized Plan of Action & Milestones (POA&M) to track remediation. 

Step 4: Apply Controls and Mitigations 

Have you scored and prioritized the risks? Great, it’s time to deploy targeted controls. Build a strong defense-in-depth strategy by using a mix of technical controls (like encryption and access management), operational controls (like security training and incident response plans), and management controls (like clear policies and strong governance).  

Remember to connect each control to the specific risks it addresses in your System Security Plan (SSP). 

Step 5: Evaluate Effectiveness 

Continue to reassess your risk scores to ensure the effectiveness of your mitigation efforts. If specific controls are underperforming, consider alternative strategies or additional investments. 

Continuous monitoring is commonly conducted through: 

• Monthly vulnerability scans 

• Quarterly control assessments 

• Annual third-party audits 

• Security metrics tracking

Update risk scores based on findings and adjust controls as needed. 

This structured approach helps agencies meet FISMA requirements while protecting critical government assets. 

Automate IT Risk Management with IPKeys 

Managing IT risks manually takes time and increases the chance of errors. Staying ahead of today’s fast-changing threats becomes a challenge. IPKeys makes it easier. Our advanced tools simplify IT risk management and integrate seamlessly with your existing systems. 

With IPKeys, you can: 

• Risk Assessment Automation: Quickly identify vulnerabilities and generate actionable insights using AI-driven tools 

• Real-Time Monitoring: Keep threats at bay with continuous monitoring and instant alerts 

• Compliance Management: Automate documentation and reporting to meet regulatory requirements effortlessly. 

• Customizable Dashboards: Gain a clear overview of your risk landscape with intuitive visualization tools. 

By automating risk management in IT, you can focus your resources on critical priorities and strengthen your agency’s security posture. 

Wrapping Up 

Federal IT security continues to evolve rapidly, with incidents like the Salt Typhoon campaign demonstrating how sophisticated our adversaries have become.  

Federal agencies can follow the approach outlined in this guide to develop resilient risk management programs that adapt to emerging threats while maintaining compliance with federal requirements. 

The key is moving from reactive to proactive risk management through: 

• Consistent risk scoring and prioritization 

• Continuous monitoring and assessment 

• Automated compliance documentation 

• Clear visualization of risk landscapes 

Ready to Transform IT Risk Management? 

IPKeys is here to help federal agencies streamline their risk management processes and strengthen their security posture. 

Contact our DoD-experienced federal solutions team today to: 

• Schedule a demonstration of our CLaaS platform 

• Discuss your agency’s specific risk management IT challenges 

• Learn how automation can enhance your existing security programs 

Let’s work together to ensure mission success in today’s challenging cyber environment. 

FAQ 

What is IT risk management, and why is it essential for federal agencies? 

IT risk management involves identifying, analyzing, and addressing threats to an organization’s IT systems. For federal agencies, it’s critical to protect sensitive data, maintain operational continuity, and ensure compliance with regulatory frameworks like NIST and FedRAMP. 

What role does continuous monitoring play in IT risk management? 

Continuous monitoring allows agencies to track changes in the risk landscape and promptly address vulnerabilities. Tools like SIEM platforms provide real-time alerts, enhancing an agency’s ability to prevent security incidents. 

How does automating IT risk management benefit federal agencies? 

Automation reduces human error, speeds up risk assessments, and simplifies compliance reporting. It also enables real-time monitoring and actionable insights for better decision-making. IPKeys offers solutions tailored to federal agencies to help automate their processes. 

What are the biggest challenges facing federal IT risk management in 2025? 

Challenges include supply chain vulnerabilities, advanced nation-state cyberattacks, legacy system security, and the expanding attack surface from hybrid work environments. Agencies need proactive strategies to address these evolving threats.