5 Tips for Managing Cybersecurity Risk

Key takeaways

1. Cybersecurity risks have the potential to affect all businesses regardless of size and should be regarded as a matter of priority.
2. The need for cyber risk management within organizations is essential given the risks of financial and reputational damage and the nature of this ever-evolving landscape.
3. Cyber risk management processes enable businesses to identify, analyze, evaluate and address cyber threats on an ongoing basis, helping to reduce the risk posed by any threats.
4. Cyber security frameworks are a set of guidelines, standards, and best practices that are designed to help businesses manage cyber security risks. Some of the most common frameworks include the NIST Cybersecurity Framework, GDPR and FISMA.
5. Businesses can take certain steps to manage the risk of cyber threats. These include developing a risk assessment matrix, appointing the right staff and conducting ongoing reviews to identify cyber threats.

Introduction

Cyber security is essential for all organizations regardless of their size, as the recent cyber attack on Uber’s computer network demonstrates. As cyber criminals continue to exploit vulnerabilities across all ends of the business spectrum exposing organizations to disruptions, financial loss and reputational damage, this is an area that all businesses must prioritize.

The most effective way for organizations to protect themselves in this continually evolving environment is by adopting strategies to manage cybersecurity risk.

What is cyber risk management?

Cyber risk management is an ongoing review process that involves identifying potential cybersecurity threats within an organization, analyzing and evaluating their impact and addressing how to respond to such threats, should they arise.

A typical cybersecurity risk management process will follow these four steps:

1. Identify risks that could exploit a cyber security vulnerability within the organization.
2. Analyze the level of risk identified and the likelihood of it occurring.
3. Prioritize each risk on the basis of severity.
4. Monitor risks on an ongoing basis to ensure risk responses align with a continually shifting threat landscape.

What are the cyber risk security frameworks?

Cyber security frameworks are a set of guidelines, standards, and best practices that are designed to manage cyber security risks. These frameworks are designed to help organizations assess and mitigate their exposure to vulnerabilities that could be exploited by cybercriminals. Without a robust and resilient cybersecurity framework, organizations leave themselves open to being attacked by malicious actors.

Cybersecurity frameworks are split into three categories based on the functions required, as follows:

1. Control Frameworks

In a control framework, strategies are developed to minimize security risks. By assessing the technical state of an organization, this framework aims to prioritize the implementation of security controls.

2. Program Framework

A program framework analyzes the state of the security program within an organization and measures its competitive analysis. It also facilitates communications between the organization’s cyber security team and its management.

3. Risk Frameworks

A risk framework defines the processes for assessing and managing risk. By identifying and quantifying risks appropriate security measures can be prioritized, helping to minimize the risk of a threat.

While they are designed for different needs and audiences, all three frameworks aim to mitigate cybersecurity risks.

Listed below are some  of the most common cybersecurity frameworks designed to help businesses establish adequate cybersecurity policies and procedures:

• NIST Cybersecurity Framework
• ISO 27001 and ISO 27002
• GDPR
• FISMA
• PCI DSS

5 tips for cyber risk management.

Below are five practical steps a business can take to effectively manage the risk of cyber threats.

1. Use a risk assessment matrix

A risk assessment matrix is a visual tool that helps an organization identify areas of risk within it. Threat levels are commonly categorized on an increasing scale of acceptable (green) to unacceptable (red) and are based on the severity and probability of the threat occurring.

Using a risk management matrix can help your business identify potential risks enabling you to implement adequate safeguards and controls to lower them.

2. Integrate risk management within enterprise systems

Integration risk management involves identifying, assessing and mitigating the risks associated with the integration of new technology into an organization’s IT infrastructure through the development of risk management policies and procedures.

Integrating risk management across all aspects of an organization can help it create effective enterprise risk management (ERM) initiatives and will allow it to form a standardized and cohesive risk management practice throughout each department.

Risk management integration can help your organization ensure it is more effective in identifying and managing risks consistently and on an ongoing basis.

3. Appoint the right staff

Appointing individuals who are specifically tasked with the role of ensuring cyber risk is effectively managed is essential for all organizations. In larger companies, a Chief Information Security Officer (CISO) should be appointed to lead the individuals or teams responsible for identifying and monitoring cyber risks ensuring any threats are swiftly responded to and resolved.

A dedicated cyber security staff member or team will also ensure there is a point of contact within your organization that can be reached in the event of any uncertainty or a breach of security resulting in a fast and effective resolution to potential threats or problems.

4. Apply the right governance framework

Organizations should establish cybersecurity governance programs with effective policies and procedures that ensure engagement across the entire spectrum of their business ranging from employees and remote workers to those in leadership positions.

Larger organizations should form a Risk Management Committee on their Board that oversees activities relating to cyber security, making decisions in line with their overall appetite for risk.

5. Prioritize cyber threats as part of a regular risk management review/audit

Cyber risk management is not a one-off event but must be incorporated as part of an ongoing review process in order to be effective. It is essential to regularly monitor your business to ensure your systems, safeguards and controls are adequate for the risks posed.

By prioritizing cyber threats through regular audits, reviews, and readiness exercises appropriate steps can be taken to prevent the risk of a cyber threat impacting your business.

Conclusion

As long as cybercriminals continue to find ways to outsmart and exploit vulnerabilities within organizations, there will be a need to have protocols in place which are designed to counter such risks.

Putting in place an effective cyber risk management process can help your business identify potential threats quickly, thereby mitigating the risk of financial loss, disruption to business and reputational damage.