A cyber risk management plan protects operations and maintains stakeholder trust. However, it can be easy to overlook key areas, leading to costly setbacks. Here are seven mistakes leaders and security professionals might make when crafting a cyber risk management strategy.
1. Ignoring Organizational Goals and Risks
A cyber risk management plan is rarely a one-size-fits-all solution. Professionals should tailor it to the organization or business they plan to protect. Ignoring this step and sticking with common practices can effectively fight off some threats, but it won’t make the strategy as effective as a customized and well-thought-out plan.
Begin with a thorough assessment of the company’s goals and assets. This step lets you understand what you must protect and how potential threats may arise. For example, if you run an e-commerce business, hackers might gain access to customers’ contact information and send phishing links, posing as a legitimate store or payment provider.
2. Skipping Risk Assessments
A cybersecurity risk assessment helps you estimate the impact of each potential threat and the likelihood of attacks hitting your system.
To cover all bases, you can use established risk assessment frameworks, such as the National Institute of Standards and Technology Cybersecurity Framework or the ISO/IEC 27001:2022 standard. These frameworks can guide your approach and help you prioritize strategies depending on which risks pose the greatest danger to your company.
3. Forgetting Incident Response Plans
Prevention is crucial in managing cybersecurity risks. However, you should also prepare for when a data breach or a similar crisis occurs. An incident response plan is a critical document that lets your company stay organized when detecting and responding to cyberattacks. It guides your team by assigning roles and tasks before, during and after a security incident.
Without an incident response plan, your business might have difficulty responding, leading to more extensive damage. Test and update these plans regularly so everyone involved stays prepared.
4. Monitoring Systems Inconsistently
Cyber risk management requires consistent monitoring. Cybersecurity technologies are evolving, and the same is true for cyber threats. Monitoring your systems allows you to identify and address potential vulnerabilities immediately. When an organization doesn’t monitor their system or adapt its approach, it creates an ideal environment for cyber criminals to succeed.
Security teams should also study and learn from past incidents. This allows them to identify weaknesses and find ways to strengthen their systems. Continuous monitoring also involves regularly reviewing and updating the plan based on new tech developments, emerging threats and lessons from previous periods.
5. Neglecting Staff Training
A cyber attack involves everyone in the company. You may have a dedicated cybersecurity team, but everyone is responsible for protecting the organization’s data and assets. Employees are the company’s first defense against cyber attacks, and it pays to invest in their education. In 2022, the World Economic Forum found that 95% of cybersecurity issues came from human error.
Training is essential to inform employees about cybersecurity best practices and how they should handle sensitive information. You can also discuss common threats and how to recognize them. This training is particularly important for departments or industries dealing with sensitive data, like healthcare or oil and gas, where attacks could disrupt services for thousands or millions of people.
6. Failing to Evaluate Third-Party Vendors
Organizations often need to work with third-party vendors or partners for essential services, such as payment processing, cloud storage or inventory. These third parties come with their own security strengths and vulnerabilities. A breach in a vendor’s system can easily become a breach in your system and put your stakeholders at risk.
Verizon’s 2025 Data Breach Investigations Report revealed that 30% of data breaches occurred alongside third-party involvement. Some of these breaches were due to the exploitation of third-party vulnerabilities, which affected the main organization.
For this reason, your cybersecurity practices need to extend to your vendors. Evaluate them as you would your own company — look at their security systems, employee training, incident response plans and compliance with regulatory bodies. Conducting due diligence during the vendor selection process and practicing ongoing monitoring once you start working together protects everyone.
7. Ignoring Industry and Government Regulations
Regulatory compliance is non-negotiable in cyber risk management. It should go beyond checking a box and getting a certificate — it is an ongoing process and commitment that demonstrates accountability, especially to your stakeholders.
Regulatory frameworks like HIPAA in U.S. healthcare and the General Data Protection Regulation in the EU aim to promote responsible data practices and properly handle individual and company information.
In 2023, the U.S. Securities and Exchange Commission (SEC) publicized new rules on cybersecurity. Companies wanting to register with the SEC must report any security incidents they experience and share information about their cybersecurity strategies, risk management and governance.
Strengthen Your Security
Understanding key cybersecurity pitfalls helps your organization better adapt to threats. Risks and vulnerabilities will always exist. However, the right mindset and a proactive approach can help you protect what matters and thrive long-term.
