In the realm of cybersecurity, risk management refers to the process in which organizations identify, analyze, and address various types of cyber risks that they may face in case their IT systems fail as a result of internal and external threats. These risks include the possibility of losing sensitive, private corporate data, experiencing disruptions in their day-to-day business operations, suffering reputational damages, and more.
Cyber risk management enables security teams to spot, measure, and evaluate vulnerabilities in their IT environment. Its connected systems and applications allow users to implement strategic ways to fix potential issues, thereby allowing organizations to avoid or reduce the impact of potential cyber risks. Unfortunately, many organizations find it difficult to implement cyber risk management effectively.
For example, pieces of information about their IT assets are scattered across multiple sources, and they have to manually associate IT asset information with risk and threat data. As a result, the process of measuring and assessing the level of risk the specific IT assets pose to the organization becomes arduous. However, you can solve this issue, among others, using a technology designed to revolutionize your cyber risk management process.
1. Providing a Single Source of Truth for Risk Management
It’s good to know that organizations today have been pursuing digital innovation and actively adopting emerging technologies to automate their operations and processes. This can increase their exposure to cyber risk though, as these technologies have vulnerabilities that can be exploited by cybercriminals. No wonder that a survey about cyber risk perception conducted by Marsh and McLennan Agency reveals that cyber risk is among the top five risks organizations from various industries are currently facing.
Luckily, organizations can leverage technology itself as well to efficiently and effectively handle cyber risks regardless of their source. For instance, risk management software makes it possible for them to access information about cyber risks, emerging threats, IT assets, and security control all from a single repository, providing a single source of truth for their risk management strategies.
2. Enhancing Control Enforcement and Monitoring
A good risk management system enhances the enforcement and monitoring of security controls. You need these controls to ensure that your organization is able to prevent the occurrence of cyber risks or minimize their impact when they happen. Through the aid of the right risk management system, you can easily assign security controls to individuals who are in charge of enforcing and monitoring them.
You can communicate information and updates to control owners without relying on phone calls and emails. In addition, the system allows you to keep your control owners aligned with the various security frameworks and mandates your organization has to comply with, regardless of the department or business unit they belong to.
3. Enabling Dynamic Risk Reporting
The risk management process involves reporting, which is crucial when it comes to evaluating the risk profile and posture of a particular organization. IT security professionals should be given the capability to present risk data in such a way that stakeholders can make sense of it and connect it to business objectives.
Risk management systems are equipped with reporting capabilities that enable users to produce visual reports that stakeholders can easily interpret. These reports display all the important information and metrics they need such as risk scores or ratings.
You can also instantly generate risk reports out of any data stored in the system, a dynamic reporting capability that you should consider whenever you’re investing in a business intelligence solution.
4. Applying a Proactive Approach to Vendor Risk
Vendors are considered among the potential sources of cyber risks. In fact, Carbon Black’s quarterly incident response threat report reveals that a technique called “island-hopping” was used in half of the cyberattacks they have investigated. In this technique, perpetrators are using a vendor’s network to access and infiltrate the network of its partner organization.
This is the reason why risk management systems include features that help users take a more proactive approach when it comes to assessing and monitoring cyber risks posed by third-parties. One of which is the ability to collaborate with third-parties to find out if their security controls are adequate and effective.
5. Supporting Other Types of Risks
Risk management in project management is also made possible through the aid of technology, considering that organizations can face other types of risks besides those associated with cybersecurity. Thus, they may encounter some uncertain events or conditions throughout the life cycle of their projects which can affect the outcomes and goals of the projects.
Risk management systems allow them to conduct project risk assessment where they can identify the specific project-related risks they may face and determine their probability of occurrence and level of impact. They will be able to propose actions that need to be taken in case the identified risks materialize as well as identify the persons who will perform such actions and all the resources they need.