Cybersecurity Risk Management
Table of Contents
Risk management is a concern for any business or organization. However, cybersecurity risk management can be complicated, as the threat landscape continually morphs and evolves, introducing new threats, such as AI, into the mix.
A recent report from the World Economic Forum (WEF) highlights that 72% of organizations expect their cyber risks to increase, with ransomware remaining a top threat. With costs spiraling to an average of $4.4 million per data breach, according to the latest IBM research, the discipline of cybersecurity risk management has become an essential element in controlling these threats.
What is Cybersecurity Risk Management, and Why is it Important?
Reducing risks of any kind is an important part of business life. Risks cause operational problems, downtime, reputation damage, and cost money to mitigate and rectify.
Increasingly, cyber risks have become an integral part of the daily lives of business owners. Ransomware, data breaches, scams, and malware all increase organizational risk. To counteract these threats to the smooth running of an organization, the notion of cybersecurity risk management has been developed.
Cybersecurity risk management is the process used to prevent cybersecurity threats from escalating and mitigate their impact. A robust cyber risk management program assesses risks and mitigates them to reduce damage to an organization.
The Processes Behind Cybersecurity Risk Management
Cyber risk management handles cyber risks associated with malicious and accidental cyber breaches. However, cybersecurity risk management must be viewed as a process, not a single action or event. The core components of the process are to identify, assess, classify, respond to, mitigate, and monitor cyber risks. Continuous monitoring is essential to ensure that the risk management is holistic and complete.
Identify and Assess Risks
Initiating cybersecurity risk management involves applying risk models to mitigate risk. These models begin with identifying and assessing those risks. The models are built upon the threats and vulnerabilities that an organization is likely to encounter, the impact of those risks weighted by the likelihood of each risk, and what causes those risks.
The intelligence gathered during this stage allows an organization to prioritize and classify cyber risks.
Respond and Mitigate
The risk assessment performed in the initial stage of cybersecurity risk management serves as the basis for addressing risk through cybersecurity measures. Mitigative measures will provide the protection needed to reduce the likelihood that a risk will lead to an incident. The effectiveness of a business's security response helps determine the outcome for the company.
Risk mitigation strategies and the measures used to handle threats are often linked to standards such as ISO 27005:2022, which guides cyber incident response and managing information security risks. A well-informed cybersecurity incident response plan is crucial for effectively addressing any potential incident that may occur.
Monitor
The cybersecurity threat landscape is not static. Cyberattack methods and even accidental data breaches are constantly changing as technology and working conditions change. For example, threats from AI-assisted cyberattacks are offering new ways for cybercriminals to circumvent security measures.
Generative AI interfaces, such as ChatGPT, are also opening up novel ways in which accidental data breaches can occur. A robust cybersecurity risk management process must incorporate continuous monitoring of the threat landscape and the measures needed to mitigate those risks as they change over time.
Cybersecurity Risk Management Frameworks
The governance of cybersecurity risk management can be complicated, but help comes in the form of frameworks. Cybersecurity risk management frameworks offer guidelines for a risk-based security approach. Three well-known examples are as follows:
NIST Special Publication 800-30
The National Institute of Standards and Technology (NIST) has published a guide, SP 800-30, to conducting risk assessments. The guidance outlines the process for identifying internal and external threats and vulnerabilities. The framework is split into preparing to conduct an assessment, communicating the results, and maintaining the assessment for future use.
ISO 27001/27005
An Information Security Management System (ISMS) provides a framework that helps organizations meet cybersecurity standards. ISO 27001 guides the establishment and maintenance of an Information Security Management System (ISMS). An ISMS contains the policies, procedures, and measures to control information security risk.
ISO 27005:22 is complementary to the ISMS of ISO 27001. ISO 27005 builds upon the ISMS framework to provide detailed guidance and methodologies to enhance risk management.
SOC 2
SOC 2 (System and Organization Controls Type 2) is a trust and security framework developed by the American Institute of Certified Public Accountants (AICPA). The framework offers guidelines known as the Trust Services Criteria (TSC), which work to mitigate information security risk across the supply chain.
What is Human Risk Management?
Human Risk Management (HRM) is a fundamental part of cybersecurity risk management. HRM focuses on human-centric risks, including phishing, social engineering, and accidental data exposure. The State of Human Risk report by Mimecast found that 95% of all data breaches are caused by human error. Cybersecurity risks are not just malicious; they can also be accidental. The human in the machine must not be forgotten when developing a cybersecurity risk management process.
Compliance and Risk Management
The importance of risk management in adhering to regulations cannot be overstated. Regulations across the world require stringent attention to information security. For example, in the USA, the Health Insurance Portability and Accountability Act (HIPAA) has stringent rules to protect electronic protected health information (ePHI). The ASTP states this on HIPAA and risk management:
"A risk assessment helps your organization ensure it is compliant with HIPAA's administrative, physical, and technical safeguards. A risk assessment also helps reveal areas where your organization's protected health information (PHI) could be at risk".
Other regulations that can benefit from aligning with a cybersecurity risk management program include the EU's GDPR and the US Securities and Exchange Commission (SEC) cybersecurity disclosure rules.
Best Practices in Achieving a Robust Security Posture
Building upon a cybersecurity risk management framework requires security measures to enforce risk management. A defense-in-depth approach to security, which utilizes multiple layers of security measures, is an established method for preventing and mitigating threats. The following security measures are recommended as best practice for achieving a robust security posture:
Identity Management and Least Privilege
Digital identity and the associated login credentials are targeted by cybercriminals who use them to gain unauthorized access. A cybersecurity risk management program must ensure that robust identity management is central to security. This should include the enforcement of least privilege access to ensure that access rights are assigned on a need-to-know basis. Robust identity management helps to reduce data breaches and other cyberattacks.
Update and Patch Regularly
Software and firmware vulnerabilities are often exploited as part of a cyberattack. Ensure that your organization utilizes automated patch management or performs regular patch updates.
Continuously Monitor Vulnerabilities and Risks
The risks threatening an organization can change. Continuously monitor risks and take appropriate actions to prevent and mitigate cybersecurity issues, including those associated with new working environments or processes. For example, the use of Generative AI interfaces by employees can lead to new data privacy risks.
Risk Assessments
As part of continuous monitoring of the threat landscape, an organization should carry out regular risk assessments to identify areas of concern. These assessments can be performed manually or using automation software that scans for system vulnerabilities. Ideally, risk assessments should be carried out by a certified third party.
Use Encryption
Always use encryption when data is at rest, such as when it is stored in a database or when it is transferred between people, apps, and other channels.
Deploy Firewalls
Use next-generation firewalls to prevent network breaches.
Use Ngav (Next-Generation Antivirus)
NGAV is AI-enabled antivirus software designed to identify and prevent emerging malware threats.
Train Your Staff
Security awareness training is an integral part of human risk management. Education programs teach employees how to identify risks such as phishing and social engineering. The training also helps create a culture of security, where staff recognize risky behavior, such as password sharing.
Organizations must reduce risk to ensure that the business is protected against an increasing number of cyber threats. However, reducing risk is complicated, as it can be challenging to define. By implementing cybersecurity risk management, an organization follows a tried and tested process to identify, assess, mitigate, and monitor all types of cyber risks. Ultimately, the cybersecurity risk management measures implemented during the process will prevent the business from suffering damage and financial losses.
FAQS
What common threats are mitigated using a cybersecurity risk management approach?
A cybersecurity risk management approach prevents the threats identified during the assessment stage of the process. These threats will likely cover a broad range of issues.
Typical common threats that a cybersecurity risk management approach will prevent include data breaches, social engineering attacks, phishing campaigns, ransomware infections, DDoS attacks, fraud scams such as Business Email Compromise (BEC), and account takeovers. The risk from internal threats, such as insecure processes, employee risky behavior, and poor password hygiene, is also reduced using this approach.
Where can an organization find help to implement a cybersecurity risk management framework?
An organization can perform a cybersecurity risk management program by referencing guidelines such as the NIST SP 800-30. However, if the company lacks staff skilled enough to carry out the process, it can use specialist firms such as security consultants or managed service providers (MSPs).
What are the main components of a cybersecurity risk management approach?
The main components of a cybersecurity risk management approach are as follows:
- Identify all possible cyber risks within an organization, including human risks.
- Assess the identified risks and assign priorities and measures to mitigate them.
- Mitigate the risks using assigned measures.
- Monitor the threat landscape and update the mitigation measures as events, people, technologies, and processes change.
- Respond to any incident using your incident response plan.
An effective cybersecurity risk management system is an essential part of any modern company today if it's to remain protected over time. The threat of cyberattacks and data breaches should not be taken lightly, and organizations should be considering what measures they're taking to protect their information.