Cyberattacks have now become a persistent risk for businesses in this modern age. As companies evolve to counter this imminent threat, a growing challenge for them is the timely identification and prioritization of cyber risks.
Several security experts have stated that most businesses are reactive, rather than proactive, which means that they only take the necessary steps after a security incident has occurred. This is where cyber risk management can benefit an organization and help them prevent breaches and incidents before they happen.
You can never be secure enough if you keep asking how to prevent a risk without knowing what the risk is. Cyber risk management is all about answering the key question of what. Cybersecurity is thought to be an IT-related issue, but in reality, it is much broader since it encompasses not just technology but people, processes, and policies as well.
In this blog post, we describe what cyber risk management is and how it can help businesses protect themselves against looming cyber threats.
What is Cyber Risk Management?
Cyber risk management is a part of operational risk management and therefore, it is essential for an organization’s board members to proactively address it. Nowadays, businesses need to conduct thorough risk assessments to identify their key assets and vulnerabilities to cyberattacks. For this, organizations must have cyber risk management at every level with appropriate information security policies governing it. The cyber risk management process involves establishing the right IT governance, having the proper measures in place for identifying and mitigating cyber threats, and investigating when a breach does happen.
Importance of Cyber Risk Management:
Without knowing what the threats are, it is impossible to prepare adequately for a cyberattack. If you are unaware of the vulnerabilities that exist within your systems, then you cannot implement the right security infrastructure and policies that will attenuate those risks. Cyber risk management helps businesses maintain a strong cybersecurity posture by enabling them to plan and apply security controls that appropriately address emerging cyber threats.
Cyber risk assessments are critical for identifying gaps in your organization’s core businesses and allow you to determine what actions you need to take to diminish those gaps. In fact, due to the growing threat of cyberattacks, some industries such as financial institutions and banks, are now required to perform cyber risk assessments to monitor cyber threats.
Therefore, to protect your organization from heavy fines, reputational loss, and loss of business, it is recommended that you adopt towards cyber risk management.
Benefits of Cyber Risk Management:
There are numerous benefits of managing cyber risk and incorporating it as part of your overall organizational risk strategy. By putting it into a commercial context, you can cultivate cultural awareness of cyber threats within your organizations which will present:
- Financial Benefits: Cyberattacks can have chaotic consequences on a business’ finances, particularly because of the loss of business (due to reputational loss and reduced customer trust) and fines from regulating bodies such as those of the GDPR. Cyber risk management minimizes the financial impact of breaches because it enables businesses to be better prepared for cyber threats – reducing potential regulatory fines and allowing preparation of adequate contingency plans.
- Strategic Benefits: Cyber risk management provides you with greater visibility of risk exposure across your business and this enables you to strengthen security posture. A better security posture ultimately leads to increased trust of shareholders and investors which gives you a strategic advantage over your competitors.
- Operational Benefits: A cyberattack can potentially render your systems useless until remedial action is taken, leading to operational hindrances. By adopting cyber risk management, organizations can foster a cybersecurity culture that will enable the organization to follow robust policies and processes to reap operational benefits.
As cyber threats become increasingly sophisticated and complex, it has now become necessary for organizations to evolve. One effective method for addressing this looming threat is to be proactive rather than being reactive and this is exactly what cyber risk management is all about. The next step towards financial and operational stability for businesses is to adopt cyber risk management.
If you are unsure of how to take the first steps towards cyber risk management then Apvera is the right place for you to turn to. We are a renowned cybersecurity partner that helps businesses establish proper cyber risk management systems.
To learn more about Apvera and how we can help, please get in touch with us.