Risk management is one of those cool terms the cybersecurity industry likes to throw around, but what exactly does it mean? Let’s dive in and answer three questions: What is risk in the cybersecurity context, what does it mean to manage cybersecurity risk, and how can I know what risks my business faces?

What is risk?

Risk, or cybersecurity risk, is defined as “An effect or uncertainty on or within information and technology” by the National Institute of Standards and Technology. With that exceptionally vague initial definition out of the way, cybersecurity risks are anything that could potentially impact your business and cause it to experience a breach, lose data, experience ransomware, etc. It’s an extremely nebulous term, but it’s nebulous for a reason: You, as a business/business owner, are responsible for defining what are risks to your business, and which risks matter.

It’s up to each individual business to know what risks exist, and what to do about each risk. Fortunately, you’re not alone! If you’re curious about what risks your business might be facing, contact us for a free initial consultation and we’ll be more than happy to help out!

How can I know what risks my business faces?

Most risks fall under one of two categories: I call these universal and local risks. For both types of risk, it all begins with visibility: Knowing what risks your business faces. Once you know, then you can begin the risk management process. There are a few different ways that you can gain this visibility, but one of the best options is to sit down with a us at Attainable Security and start a conversation! We’re always willing to sit down and help you define what the threat landscape looks like for your business. Reach out to us today!

Universal Risks

Universal risks are things that affect nearly every company, and every company should be aware of these risks. For example, the element of human risk: every organization has employees, and those employees might click on a phishing email, or forget to appropriately protect confidential information. For this universal risk, we offer our Human Risk Management program to help educate and prepare your workforce.

Universal risks are often less complicated to address, simply because more solutions often exist for them, as a solution for a universal risk can be monetized across businesses and industries. Here are some examples of universal risks that might affect your business:

1. Network security. Is your access to the internet as secure as it should be?
2. Email and data security. Are your accounts properly secured, and is your data stored in a safe and encrypted location?
3. Backups and redundancy. If you rely on a central share or server to store critical files, do you have a plan to recover if that system goes down or you lose access to your files?
4. Security Training. As stated earlier, are your employees properly trained to recognize phishing emails and other threats?

Local Risks

Local risks are risks that may be unique to your business or industry. These risks can sometimes be more difficult to identify, because they are unique to specific industries, locations, or businesses.

For example, a company that manages datacenters might consider anything that can compromise its datacenters as a risk. A landscaping business might not care at all about datacenter security. Local risks are often times more challenging to address, because they require a deeper understanding of your specific business situation. Here are some examples of local risks:

1. If your company relies on storing sensitive information or assets at a physical site, is that site properly secured and monitored?
2. If your company is required to be HIPAA compliant, are you ensuring compliance?
3. If your company has internal servers, are the operating systems and programs on those servers properly patched in response to CVE’s?

What does it mean to manage cybersecurity risk?

Fundamentally, there are four main approaches to manage cybersecurity risk. Each one has its pros and cons.

For each approach, we’re going to use a common universal risk as an example: The risk of getting a computer virus because of a bug in a program. Let’s take a look below:

1. You can Accept the Risk

To accept the risk is to simply acknowledge that it is there, and to make a decision to not pursue any action against the risk. Risks can be accepted when a business doesn’t have the resources or bandwidth to address it, or if it’s a very low priority risk that isn’t worth spending resources on.

In our example computer virus risk, to accept the risk is to simply accept that it is a risk, and that you’re not going to try to update the program, find a more secure replacement program, or install an antivirus.

• Pros:
  • Cost-effective: No immediate action or expenditure is required.
  • Focus on high-priority risks: Allows resources to be concentrated on more critical threats.
• Cons:
  • Potential for significant data breaches: If the accepted risk materializes, the consequences could be severe, including financial loss, reputational damage, and legal liabilities.
  • Increased vulnerability to attacks: Accepting risk can make the organization an easier target for cybercriminals.

2. You can Mitigate the Risk

Mitigating the risk means that while you don’t address the source of the risk, you put in security measures that help reduce the likelihood or consequences of the risk being exploited.

In our example computer virus risk, a possible risk mitigation route would be to install a powerful antivirus onto the computer that can detect and prevent a virus if introduced.

• Pros:
  • Reduces the likelihood of successful attacks: Implementing security measures like strong passwords, endpoint security, firewalls, and encryption can significantly lower the chance of a risk being exploited.
  • Minimizes potential impact: Even if an attack occurs, the damage can be lessened through mitigation strategies.
• Cons:
  • Requires ongoing investment: Mitigation measures often involve costs for implementation, maintenance, and updates.
  • May not eliminate all risks: No security system is perfect, and determined attackers may still find ways to exploit vulnerabilities.

3. You can Resolve the Risk

Resolving a risk is the ideal end state for a cybersecurity risk. When you resolve a risk, that risk isn’t ignored, and no workarounds are implemented, the risk is simply taken care of permanently, and it’s removed from the list of active risks.

In our example computer virus risk, a possible resolution pathway is to update the program and permanently take care of the bug.

• Pros:
  • Eliminates the specific risk entirely: By addressing the root cause, the risk is completely removed.
  • Proactive approach: Resolving risk proactively prevents potential future issues.
• Cons:
  • Can be costly and time-consuming: Resolving complex security vulnerabilities may require significant resources and expertise.
  • May not always be feasible: Some risks may be inherent to certain technologies or systems.

4. You can Transfer the Risk

Risk transference is when, instead of taking care of the risk or implementing workarounds, you just pass the risk to someone else. Most commonly, this takes the form of cybersecurity insurance. We recommend maintaining an active cyber security insurance policy at all times, regardless of your risk management strategy Treat cybersecurity insurance the same way you treat your auto insurance: Just because you have auto insurance doesn’t mean you can suddenly stop being alert when on the road. It’s there to help protect you, but it’s not a total solution.

In our example computer virus risk, an example option would be to pull a cyber insurance policy that protects specifically against virus attacks.

• Pros:
  • Shifts responsibility: The risk is transferred to a third party, such as a cybersecurity insurance provider.
  • Provides financial protection: Insurance can cover potential losses, reducing the financial burden of a breach.
• Cons:
  • Cost of premiums: Cybersecurity insurance can be expensive, especially for high-risk organizations.
  • Limited coverage: Insurance policies may have exclusions or limits on coverage, and may not cover all potential damages.

Summary

As we wrap up this article, I hope that you have a better idea of what risk is in the context of cybersecurity, how you can manage risk, and why it’s so important to manage cybersecurity risk. Ultimately, it all begins with gaining critical visibility into where your org stands today. If you’re feeling overwhelmed by all this, don’t be alarmed! The good news is that you’re not alone, and help is readily available. It’s as easy as reaching out to us to start a conversation. Take the first step toward managing your risk today!