Cyber risk management is a crucial component of the wider efforts of an organization to manage risks. Information Technology (IT) is becoming an inevitable part of business operations across the globe. As organizations continue to rely heavily on them, they become increasingly exposed to cybersecurity threats, cyberattacks and criminals, natural disasters, and internal accidents. In 2024, the average global cost of a data breach was $4.88 million.
Once exposed to these threats, it can lead critical operations to go offline and halt business operations. Overall, cyber security threats lead to data loss, loss of revenue, and reputational damage. While these risks cannot be eliminated entirely, cyber risk management can be utilized to prevent them and minimize their effects.
Cyber risk management means determining, evaluating, and responding to cyber risks. To manage a risk, an organization must evaluate what is the possibility of the event occurring and what could be the extent of its impact. Once the cause and impact are identified, establish the best approach to deal with it.
Organizations use cyber risk management to identify the most critical cyber threats. Once done, they select the IT security infrastructure to protect their systems and networks from cyber criminals and other potential cyber risks and threats based on their business operations, industry, resources, and IT infrastructure.
A few decades ago, installing a firewall was enough for an organization’s cyber security measures. However, we have come a long way from that. Since technology is a crucial part of an organization’s day-to-day and critical operations, its IT systems have grown large and complex.
With the rise of cloud services, workspaces shifting online, and the increasing reliance on third-party IT services have brought more software and devices to an organization’s network. The larger the IT system, the more is its exposure to cyberattacks. Managing cyber risks enables an organization to identify and manage its attack surface and improve its security infrastructure.
Presently, cyber threats have become more complex and sophisticated. The presence of cyber criminals is pervasive. They are widespread and have more resources and access to information than ever.
Below are a few technological developments that increase the risk of cyber security threats:
Risks related to information security must be handled and corrected to protect the organization against data breaches and keep sensitive information safe. In the absence of an effective cyber security risk management policy, organizations are exposing themselves to cyberattacks and criminals with no medium of recovery.
Assessing cyber risk with complete certainty is difficult. It is rare for an organization to have complete visibility into a cybercriminal’s strategies, security gaps, and negligence from employees. However, a comprehensive cyber risk management plan remains the same and covers the following essential elements:
The act of defining the context in which a risk decision is made is called risk framing. When an organization is able to frame risks at the beginning, it can align its risk management strategy to its business objectives. Alignment helps prevent ineffective and costly mistakes that interfere with business operations.
A cybersecurity risk assessment enables an organization to identify vulnerabilities and gaps in the security infrastructure to determine potential business impact and prioritize critical risks. Most assessments evaluate threats, vulnerabilities, and impacts.
The results from a risk assessment can be used by the organization to identify how it will respond to cybersecurity risks. Risks that are more likely to occur and have a potentially higher impact shall be responded to via risk mitigation, remediation, or transfer. Unlikely risks with a low impact may be accepted, as investing in security measures against them is more costly.
It is crucial for organizations to develop a robust approach and strategy for cyber risk management. Some tips that organizations can follow are below:
The leadership must foster a culture of cybersecurity and risk management initiatives in the organization. Managers and leaders can ensure support, involvement, and accountability from employees by communicating the need and outcome for cybersecurity awareness and its benefits. Such a culture must involve all employees regardless of the nature of their employment.
Vendor risk management and third-party risk management are crucial components of regulatory compliance mandates. This holds especially true in cases of certain industries, such as finance and healthcare. However, global and national data protection laws are also being laid down that have universal application irrespective of the industry to which the organization belongs.
Cyber risk management is an immense responsibility and a critical matter. It cannot rest with your IT security team alone. Security programs can be implemented successfully only when the entire organization participates. Cybersecurity professionals ensure that all risks are accounted for, but involvement from all employees and departments is crucial.
In 2022, 41% of organizations that had been attacked in the past year said their risk exposure had increased. Organizations must consider training their executives, leaders, and managers on social media. Cybercriminals often use personal information widely available via platforms such as Facebook and LinkedIn to trigger cyberattacks such as whaling. Whaling is a common type of phishing attack targeted at high-profile executives to steal employees’ personal and financial information.
68% of data breaches were due to the “human element”. Implementing a robust cybersecurity plan requires employees to be fully equipped with IT-related threats. Employees must be capable of identifying potential threats and operating the processes and procedures required to minimize those threats. Training programs must educate employees on the organization’s cybersecurity policies, working with IT assets, and handling sensitive and confidential data. Employees must also be aware of the reporting mechanisms for cases where they discover a security threat.
It is important that all stakeholders are aware of cybersecurity risks, especially the ones that affect all or major departments in the organization. Information about the cyber risks and threats that the organization is worried about must be communicated to all stakeholders. This enables them to become aware of potential business impact and what they can do to prevent it.
While it is unrealistic for an organization to identify all vulnerabilities and counter every threat, risk management in cybersecurity can offer a better mechanism for handling such risks. It focuses on security measures to tackle threats and vulnerabilities and counter business impact. As organizations become increasingly dependent on technology and digitalization, it is crucial that they safeguard themselves against cyber risks.
Apathy towards taking proactive measures to guard against cyberattacks, or cyber fatigue, affects up to 42% of businesses.
Effective cyber risk management is essential for safeguarding business operations, and Imagine IT is at the forefront of providing comprehensive cyber security solutions. With our expertise, you can implement robust strategies that protect sensitive data and mitigate potential threats. Imagine IT offers a wide range of services, from threat detection and incident response to continuous monitoring and risk assessment, ensuring that all your cybersecurity needs are met with precision and efficiency.
Our proactive approach not only addresses current vulnerabilities but also anticipates future risks, allowing your business to stay ahead of the rapidly evolving cyber threats. Contact Imagine IT today to build resilient digital infrastructures and ensure security in your day-to-day operations.
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