Is it Mandatory to Adopt Cyber Risk Management in Organizations?

By CIOReview | Wednesday, February 12, 2020

Organizations can defend themselves by incorporating cyber-risk management in an attempt to achieve business objectives.

FREMONT, CA: Not all organizations long to have the best security capabilities for cyber and information, as that is not their primary objective. Such companies have got to reach their business goals. Cybersecurity has, however, become a critical issue across industries to help them achieve these main missions. This is due to an increase in the regulations across jurisdictions that determine how to protect and use data assets. Interconnected devices, evolving technologies such as IoT and migration to cloud-based services will also pose challenging challenges to cybersecurity. Furthermore, the rapidly evolving cyber-threat environment exposes companies regardless of industry to a new set of risks.

Enterprise risk management for cybersecurity includes the process of identifying, assessing and prioritizing the key cyber threats of an organization. The effective risk management system helps IT, security teams, to track and evaluate their cyber risks across the enterprise by comparing each of their residual risk ratings. Organizations can adapt the following industry practice cybersecurity frameworks, including Cybersecurity Framework SO27001 and NIST's. Such management systems serve better when there are divisions in the enterprise or when there is a need to determine the security risks associated with third party suppliers.

The basic steps help organizations to implement a Cyber Risk Management Framework successfully.

• Perform a due diligence assessment to develop an organization's existing business risk management system, including a review of the indicators used to evaluate adverse impact areas such as organizational, reputational, security and financial.

• Adopt an industry-standard cybersecurity framework and develop a manual risk reporting tool that should include an active risk registry detailing the controls, tolerances and risk ratings.

• Automate the implementation process by establishing a risk management approach for the description, compilation and review of cyber hazards. To explain the risk profile, the risk management approach will offer the opportunity to include cyber risk visualizations, dashboards, and heat maps.

The cyber risk management mechanism thus ensures that risks are completely mitigated without losing sight of primary business goals or stopping any digital transformation and innovation initiatives.

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