What is Cyber Risk?
Cyber risk is the threat of potential disruption to the business, or potential damage to a business’ reputation by a cyber-attack. Any size organisation, of any industry, is vulnerable to attackers. Attackers are motivated by financial gain, gaining confidential data or to disrupt business operations. Cyber risk management is the process of identifying potential cyber risk. But how important today is it to have your own risk management strategy?
In this article, we’re going to take a look at the importance of managing your cyber risk, and how our consultants can support you throughout the process.
Does my business need a cyber risk management strategy?
Organisations small and large need to realise, the current cyber risks make any organisation a key target for an attacker. No matter the size of your organisation or the size of your customer base, you could still fall victim to an attack. One cyber-attack on an unprepared business could cause damage for years to come in terms of data loss, financial impact, brand perception and even employee morale. Installing anti-virus software on all desktops is no longer enough to prevent attacks, this is only one aspect of risk management.
Establishing and implementing a risk management strategy within your organisation allows you to mitigate the risks specific to your business and reduce cyber-attack threats. The increased level of cyber security within the business makes it worthwhile. Your clients may request a copy of your cyber security policy and risk mitigation plan as part of the tendering process or when working with clients from the public sector.
So, the answer is yes, every organisation needs a cyber risk management strategy!
Why will a cyber risk management strategy help my organisation?
It is important that every organisation has a cyber risk management plan in place. A risk management strategy helps to inform decision-makers of the cyber risks associated with day to day operations or new ventures. A cyber risk assessment will assess and establish the likelihood of any cyber-attacks that the business is currently vulnerable to. Knowing the key threats to your business means that money and time are spent in the right places. This will help prevent the risks identified in your assessment.
Here are the top reasons for implementing a cyber risk management strategy:
- Mitigating cyber risks and preventing attacks– Implementing a cyber risk management strategy helps to identify the threats to an organisation. Developing a risk treatment plan also helps to address the risks and put the correct defences in place. This reduces the threats from cyber-attacks.
- Reducing costs and protecting revenue- Many attackers motive is financial gain. This means any organisation can be affected. It is important to minimise the risk of falling victim to an attack and mitigate the loss of revenue you could lose. Complying with certain regulations as part of the cyber risk strategy will help organisation’s avoid hefty fines that can be given for non-compliance.
- Increased business reputation- Proving to your clients and customers that you take cyber security seriously gives your organisation a competitive edge. Organisations who prioritise their customer’s or client’s data, gain their trust; resulting in loyalty and increased long-term business success.
The cyber weaknesses industries face...
There is no doubt that cyber-attacks are a major threat to all organisations and industries. However, many organisations have weaknesses in their cyber security strategy. A common weakness in many organisations is the failure to identify and mitigate risks. As well as, failure to follow regulations and standards in the industry. This leaves organisations more vulnerable to hackers.
The Finance Industry
The finance industry is the most targeted industry in the world for cyber-attacks. In 2018, the finance industry experienced 19% of all cyber incidents. The industry is subject to different compliance regulations such as PCI:DSS (Payment Card Industry Data Security Standard). This is to provide more protection over customers data and increase defence against cyber threats.
One of the top weakness which the finance industry faces is unintentional insider vulnerabilities, according to SwivelSecure. This occurs when employees fall vulnerable to an attack through various social engineering methods such as; Phishing emails, E-mail hacking or baiting. Other causes of attacks are the improper configuration of systems and servers in the organisation.
The second biggest weakness which the finance industry faces is supply chain risk, in other words, supply chain security. Many financial organisations rely on third-party service providers to manage their compliance. Failure to assess supply chain security arrangements means that if the third-party supplier is subject to an attack, the financial organisation is also at risk. This means personal data and confidential information could be compromised. Failure to comply with GDPR, protecting the data of your customers or clients, can result in hefty fines for both organisations. This demonstrates the importance of complying with the regulations applicable to your organisation, as well as it being the law.
The overall takeaway from the weaknesses of the finance industry shows the importance of risk management. A risk management plan helps to address the weaknesses in an organisation’s cyber security strategy. It is important to incorporate compliance with regulations such as PCI:DSS Compliance and GDPR. Having a risk management plan can save organisations detrimental financial loss. They will be able to see the risks they need to address within the business and the regulations they need to follow.
Providing trust to your clients or customers that you’re taking the correct steps towards cyber security and protecting their data, means that they will feel confident in doing long-term business with you.
Our approach to cyber risk management
CS Risk Management has a team of qualified cyber consultants, experienced in delivering consultancy around all aspects of cyber security and risk management. Our consultants can help organisations identify the cyber risk levels within their organisation. This is done by conducting risk assessments and audits. The risk assessment determines risk appetite and levels, asset management and main threats to a business. The assessment will establish the likelihood of the incident occurring.
Our consultants can also develop a risk treatment plan based on the risks and vulnerabilities identified. This entails advising on the necessary control implementations to reduce risk levels and identifying a new level of risk once the appropriate treatment has been established. We also help organisations develop an on-going risk management governance plan and maintenance of all risks.
Get in touch today for more information regarding our cyber risk management service or to speak to one of our consultants.