Overview of Cyber Risk Management
Cyber Risk Management, is only defined as the combination of policies, personnel, processes, and technologies that aid organizations to achieve a level of exposure in a manner that is cost effective. Cyber-attacks continue getting large and growing with the growing times. This is costing individuals as well as companies millions of money. Organizations all over are struggling with regular monitoring, communication between cyber security and business models.
Entrepreneurs and business moguls foresee Cyber Risk management as the next evolution in security for organizations and enterprise technology risks. This is however specific to organizations that rely highly on digital platforms to run their businesses. This business aspect is brought about by several trends. These include but not limited to the following;
Continued Losses
It reaches a moment, where a company may experience massive losses that may lead to the detriment of the company. Many reasons might contribute to these losses. One primary reason is the growing issue of cyber-attacks that have had a significant challenge for many organizations globally. Criminals are devising new and better ways of conducting their activities in a bid to cause the most extensive damage. It has, therefore, become vital for organizations to come up with a cyber-risk management framework that is intended to mitigate the risks that come with cyber insecurity.
Reduced Security
In a majority of organizations, the only available current security processes are only addressing compliance issues, but fail to capture protectionist strategies against cybercrime. The ever-evolving cyber threats are becoming more popular. Compliance-focused security measures, fail to be objective and do not focus on the core of the problem at hand. Cyber risk management, therefore, comes to be used to improve security in organizations.
Advantages of a cyber-risk management system
Some of the benefits of cyber-risk management is that one; it is aimed at meeting the firm’s objective of cost-effectiveness. If an organization succeeds in managing its risks effectively, it is most likely to lower loss instances. On this front, it can compete effectively with other firms in the economy and hence remain competitive. Secondly, cyber-risk management systems help in achieving the organization’s goals.
Foundation of cyber risk management
To build a strong foundation for cyber risk management, the following five elements are composed of this foundation set up. These elements include one; clear decisions. These decisions buildup on to a well-thought-of risk management framework. Secondly, the risk management system should be cost-effective. This means that it should aim at reducing losses incurred by the firm.
Besides, the risk management system should relay accurate models of risk and of explicit risk management framework that can roll over into real life. Finally, the management system should be comparable with other risk management systems elsewhere. These systems in different organizations help to strengthen our risk management system.
Elements of an Effective Cyber Risk Management System.
The first element is a Risk. A risk is defined as a function of threats, controls and various impact factors that drive the level of loss exposure. Second, is the Cyber Risk Management system itself. This should be composed of multiple decisions and an implementation framework. The decisions are connected to risk governance that has to be implemented. Execution of the system hence serves as a function of the decisions laid before. Feedback is the third and final element. The feedback should be related to cyber threat intelligence and losses; various metrics regard conditions that affect implementation. Feedback is essential as it aids during the impact assessment of the cyber risk management framework.
