In today’s digital era, cybersecurity threats are rising faster than ever before. Unfortunately, just 16 percent of executives say that their organizations are well prepared to deal with a cyberattack, according to McKinsey & Company.
One of the most effective ways to protect an organization against cyber threats is adopting a risk-based cybersecurity approach. Cyber risk management involves identifying potential cyber risks, assessing the impact of those risks, and creating a plan to appropriately respond to the risks if they should ever manifest.
Ways In Which Cyber Risk Management Improves Cybersecurity
Organizations of all sizes can significantly benefit from having a cybersecurity management plan. The primary goal of these plans is to avoid an attack before it causes financial and reputational damage. Cyber risk management plans also emphasize the need for proper employee training, identify risks a business may face, and outline the strategies needed to counteract those risks.
There are several key ways in which cyber risk management can improve overall cybersecurity posture, including the following:
Identify Any Significant Internal Or External Threats
Businesses face both internal and external threats that can adversely affect the organization’s capital, earnings, and reputation. Internal risks typically stem from inside a business. This could be information leaked by an employee or data stolen or compromised due to human error. In some cases, internal risks involve sabotage from a disgruntled worker. External threats are those that originate outside of the business. Hackers may find security gaps that allow them to enter a system and cause havoc. Phishing, malware, ransomware, distributed denial-of-service (DDoS) attacks, and similar cyber crimes are also examples of external risks. Cyber risk management can be helpful in identifying both internal and external threats that can significantly impact the business.
Inform Stakeholders About Cybersecurity Vulnerabilities
Cyber risk management establishes critical guidelines that ensure stakeholders are kept aware of any security weaknesses and the severity of the threats. Stakeholders expect to be kept up-to-date regarding vulnerabilities that the business may be experiencing.They should also be the first to know when a cybersecurity event does occur that puts their private information at risk.
Establish A Protocol For Migrating Cyber Risks
Migrating cyber risks comes down to having the proper protocols to act swiftly and appropriately to cyber events. Every business is unique and may require varying levels of security to keep cybercriminals at bay. Cyber risk management plans are designed to keep organizations safe from malicious attacks, data breaches, and similar security incidents.. A business may utilize many types of cybersecurity protocols, such as encryption, firewalls, and proper employee cybersecurity training.
Determine Risk Levels And Prioritizes Higher Threats
An essential component of cyber risk management involves analyzing the severity of each risk by first assessing how likely the threat is to occur and how significant the potential impact would be if the business encountered the threat. This can help organizations establish risk levels and determine which threats should be prioritized based on the potential impact.
Reduce The Chance Of Risks From Occurring
Reducing the probability of cyber risks from occurring is a top priority for all businesses. A cyber risk management plan can help organizations find new and improved ways to protect the company by implementing proven cybersecurity strategies. These may involve regular employee training sessions, data encryption techniques, limiting the number of login attempts on secured systems, protecting outbound data, setting up a password management system, and similar strategies to minimize security risks.
Speak With Hartman Executive Advisors For More Information
It is important to remember that managing cyber risk is a continual process that requires business risks to be monitored at all times. The unique risks that an organization may face are also changing constantly and should be regularly analyzed as the cyber threat landscape evolves. To learn more about how cyber risk management improves corporate cybersecurity posture or to schedule a consultation with a cybersecurity and IT consultant, reach out to Hartman Executive Advisors online or over the phone at (410) 612-3011 today.