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The company’s digital assets

Risk management in the realm of cyber security constitutes an indispensable process for any organization seeking to protect itself, its customers and other partners from increasingly complex and novel threats. With the growing reliance on technology, the need for robust security measures has become essential. In this article, we examine the risk management of your company’s digital assets. By digital assets here, we mean all the information, systems, networks and applications that are important to the organization and its objectives.

By taking a risk-based approach to data and system security, companies can strike the right balance between risk and efficiency to achieve their objectives. Effective risk management in cyber security ensures that the organization’s technology, systems and information are adequately secured, focusing resources on the most critical areas. Securing a solid risk management approach throughout the organization enables companies to effectively manage cyber security risks, while contributing to their overall risk management strategy.

What is risk management for cyber security?

Cyber security risk management is the process of identifying, assessing and prioritizing cyber security risks, as well as implementing strategies to mitigate or reduce them. The purpose of cyber security risk management is to enable organizations to make informed decisions about the level of risk they are willing to accept and take appropriate measures to protect their information and their critical business processes that depend on it.

Risk management is an ongoing process whereby risks are identified, assessed and managed across the organization. This process is important to ensure that the organization’s cyber security strategy is aligned with its overall business goals and objectives.

Risk management approach towards cyber security

The risk management approach to cyber security includes the following steps:

Risk identification
This stage involves accurately identifying potential cyber security risks the organization may face. This is achieved through a thorough assessment of the organization’s digital assets, including information, systems, networks and applications.

Risk assessment
Once risks have been identified, they should be assessed according to their likelihood of occurrence, vulnerability of affected systems and potential impact. This can be achieved through analysis of historical data, vulnerability scans and penetration tests.

Risk prioritizing
After the assessment, risks should be prioritized according to their severity and potential impact on the organization’s operations. Risks that pose a significant threat to business operations should be given the highest priority.

Risk mitigation
The next step is to define, plan and implement mitigating measures to reduce the identified risks. This can be achieved by implementing security measures such as firewalls, anti-virus software, intrusion detection systems and access controls. Maar zeker ook beleidsmatige, bewustwordings- en proces georiënteerde maatregelen kunnen risico’s beperken. A good risk policy therefore also follows the People, Process & Technology model. A balance between the various aspects offers the highest effectiveness of the measures as a whole.

Risk monitoring
Risk management is an ongoing process, where it is crucial to regularly monitor and evaluate the effectiveness of the measures taken by the organization. This can be achieved by conducting regular vulnerability assessments, penetration tests and audits.

Benefits of a risk management approach towards cyber security

A well-executed risk management process can have many benefits for an organization, for example:

Improved security.
By identifying and assessing potential cyber security risks, an organization can implement appropriate management and security measures to protect its digital assets, leading to a strengthening of its overall level of security and resilience against attacks (cyber resilience).

Improved compliance with regulations
A risk-based approach to cyber security can help organizations comply with various regulations and standards such as GDPR, PCI-DSS, ISO 27001, BIO, DORA, NIS2 and others.

Lower costs
By focusing on the most critical risks and implementing appropriate measures, an organization can reduce the overall cost of cyber security while ensuring that resources are allocated in the most effective way.

Increased resilience
Effective risk management can improve an organization’s ability to respond to and recover from cyber incidents, ensuring that the organization remains operational and continues to deliver its services despite cyber threats.

Increased stakeholder confidence
Good cyber security risk management can increase stakeholder confidence in an organization’s ability to protect its digital assets and ensure the confidentiality, integrity and availability of its information.

When managing cyber risks, it is crucial to consider the broader context of your organization’s processes. This involves understanding the business priorities and objectives and aligning cyber risk management with these goals. By assessing the risks you are willing to take with technology to achieve your objectives, you can make informed decisions about cyber risk management.

Effective management is essential for a successful cyber security risk management. This includes understanding how cyber risk management and communication fit within existing governance structures that handle other forms of business risk. Your approach to cyber risk management should be effectively led and tailored to the specific needs of your organization.

It is also vital to ensure that your organization has an adequate policy setting out the risk management strategy for the entire organization, integrating cyber security considerations into other organizational policies where appropriate. Collectively, the board should understand the importance of cyber security in supporting the organization’s overall objectives and have the necessary information to make timely, informed decisions.

Effective communication

Clear wording
For effective communication on cyber risk and risk management, it is essential to clearly articulate your approach to both employees and decision-makers. This ensures that they understand how cyber risks are managed and are able to make informed decisions.

Coordinated communication.
It is also important to ensure that your communication about cyber risks is aligned with the way your organization communicates about other types of risks, such as legal or financial risks. This promotes the integration of cyber risk management into the organization’s broader risk management strategy.

Clear and sensible use of language.
Clear and meaningful language is crucial when communicating cyber risks. Risk labels or scores should be fully explained to avoid misinterpretation or misunderstanding. For example, using an “average” risk label without clear criteria can lead to inconsistent interpretations within the organization. Communicating clearly and using meaningful language can ensure that all employees in the organization have a consistent knowledge of cyber risks and risk management.

How to improve the risk management framework

Continuous and iterative
It is essential to realize that risk management is an ongoing and iterative process. As technology and the business environment continue to evolve, both threats and opportunities may shift. Risk management approaches must be flexible enough to adapt to these changes.

Reviewing risks regularly
Regularly reviewing risks is vital to ensure that the risk management methods chosen remain effective and appropriate. It is especially crucial to review risk assessments in the event of significant changes such as a shift in the threats an organization faces or changes in the technology used to deliver and manage a system or service.

Regular evaluation of methods, frameworks and tools
Besides evaluating risks, it is also important to regularly evaluate the methods, frameworks and tools used for risk management. These must remain effective within the business context and appropriate for the constantly changing landscape of cyber security and threats. By continuously improving their approach to risk management, organizations can ensure that they are better equipped to manage cyber risks effectively.

In conclusion

Risk management in cyber security is indispensable for protecting digital assets from complex threats. A risk-based approach helps organizations balance and implement measures effectively, contributing to a strong overall risk management strategy. The process includes identification, assessment, prioritization, mitigation and monitoring of risks, with benefits including improved security, regulatory compliance, cost reduction, increased resilience and stakeholder trust. It is essential to manage cyber risks in line with business objectives, with clear communication, aligned language and a continuously improving approach.

the OpenSight 10 new year’s cyber security resolutions

During the OpenSight 10 new year’s cyber security resolutions, we will publish a blog each week about each of the ten resolutions as listed below:

With these 10 new year’s resolutions, we at OpenSight hope to give you some insight regarding the ten steps you could take to decrease the chance and impact of an incident.

Want to know more?

Be sure to keep an eye on our blogs where, following these Cyber Security resolutions for 2024, we will cover all 10 topics in detail. Follow us on LinkedIn to be the first to know about all our updates!

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