How to avoid the cyber threats when converging to a holistic IT risk scenario. Part II of IT Assurance
Management is often overwhelmed when the news of yet another cyber-risk attack and the data disruption that follows reaches them. As the cybercriminals get more professional, there seems to be an urgent need for innovative solutions in the search for the current cyber and data risk controls. The alarming cost and consequences of any cyber-breach, big or small are increasing, as the continued business operation is at stake.
A cyber disruption or data breach has a rather broad impact on the entire organisation. In spite of that IT security and cyber risks and breaches involve more immaterial and theoretical components in the planning stages than many other risks, until the violation happens. It is wise to assess a variety of exposures and their potential business impact and place cyber controls, assurances, and protection in action.
Visualize the risks to understand the impact
The fundamental rule of cyber risk management is the involvement at board level. Such participation and engagement can drastically reduce the cost of any data or IT security breach.
As the cyber security links with other systems across the organization, various IT, gaps are addressed. Cyber threats are vastly different from other potential risks in the traditional risk management portfolio of the organisation where the process owner can easily visualize the risks and understand their impact on reducing cost and downtime to businesses.
Cyber risk and network security management
Just as cyber threats have evolved, so has the business resilience approach and insurance coverage that proactively manage the risks. Many companies may still struggle to understand the insurance aspect of cyber risk management as risks today cover more aspects than network security.
Most companies are vulnerable. However certain industries have extended exposures and needs when it comes to protecting cyber liability, IT security and data privacy. All businesses must address all aspects of cyber risks with their cyber risk policy.
Interconnected risk management
The alignment of cyber insurance with existing assurance policies is the next step in managing interconnected cyber security and risks. It is advisable that businesses reassess their cyber insurance annually to ensure growing awareness of their insurance policies that cover current cyber incidents, network security breaches or privacy incidents.
The annual questions that need answers from compliance and assurance officers are how cyber insurance links with other systems and where compliance and risk gaps are.
IT disruptions are continually caused by cyber issues when the network is hacked into and brought down. Such scenarios can address the need for "all risk", supply chain, cyber or property policy. In many cases the breach may trigger multiple systems, and is one of the challenges that businesses face as cyber risks add to their exposure creating a need to see cyber threats from a holistic perspective.
This article is the continuation of part I Cyber risk scenarios for effective IT risk assessment from the previous newsletter
To learn about the issues covered above attend the IT workshop on IT-governance, digital forensics, cyber crime and cloud computing at The 9th annual European GRC Summit in Stockholm
Or
The IT and Cyber Security workshop at the Technical University of Denmark. Register here
[To be continued in the next newsletter]
