How Companies Can Manage Cyber Risk

Enterprise Security Magazine | Wednesday, November 24, 2021

Fremont, CA

Any cybersecurity effort or cybersecurity training program should aim to thwart an attack and emphasize the importance of training people and systems to recognize infiltration in real-time. A large part of this effort is to accurately assess organizational risk and adopt a cyber risk management strategy that is as effective as feasible.

To manage cyber risk effectively, it is essential to:

Identify Cyber Risk              

The process of recognizing, analyzing, and taking steps to decrease risk to an acceptable level is known as cyber risk management. The first phase in the cyber risk management process is risk assessment, which is used to establish the scope of the potential threat, vulnerabilities, and risk associated with the IT system.

The risk of failure or loss caused by insufficient or failed procedures, people, or systems is known as operational risk. Both internal and external factors can influence operational risk. Human mistakes, misbehavior, and insider assaults are all examples of internal events. Natural disasters, cyber-attacks, changes in market conditions, new competitors, new technology, litigation, and new laws or regulations are all external events that impact IT and the institution's capacity to accomplish its operational goals. These occurrences represent both hazards and opportunities, and the institution should consider them as part of the cyber risk identification process.

Treat Cyber risk                 

This is a crucial part of cyber risk management which includes:

Avoidance

This requires altering plans in order to eliminate a cyber risk. This method is useful for dealing with risks that could have a big impact on a company or project.

Transfer

Suitable for initiatives involving numerous partners. This term isn't used very often. Insurance is frequently included. "Risk sharing" is another term for it.

Mitigation

Limiting the impact of a risk so that it is easier to resolve if a problem arises. This is the most widely used. Also known as "risk optimization" or "risk minimization."

Exploitation

Some risks are beneficial, such as when a product becomes so popular that there is insufficient staff to keep up with sales. In this situation, the risk can be taken advantage of by hiring more salespeople.

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