Cyber Risk Management

What Is Cyber Risk Management?

The term “cyber risk” broadly describes any threat, vulnerability, or exposure (such as regulatory compliance) that could damage or disrupt an organization’s IT systems, business operations, or reputation. Effective cyber risk management proactively identifies and assesses threats to reduce the likelihood and potential severity of attacks. 

Because threats come in a wide variety of forms, organizations often use a cyber risk management framework, such as NIST CSF or ISO 27001 to evaluate and prioritize them according to their unique risk profiles and business objectives. These frameworks generally follow a four-step process to continuously identify, assess, then control risks, followed by ongoing reviews of those controls’ efficacy. However, not all risks pose equal dangers—depending on its risk tolerance, an organization may choose to simply accept a risk that is unlikely or low-impact.

Why Is Cyber Risk Management Important?

Much like countermeasures, cyber risk management is a foundational piece of any cybersecurity strategy. Cyber risk management encourages a shift from a reactive security posture to a proactive one that identifies and mitigates potential weaknesses before they become problematic. Beyond protecting assets and business continuity, cyber risk management also helps ensure security resources are directed toward the most significant threats and vulnerabilities.

What Are Some Key Considerations for Cyber Risk Management?

Cyber risk management provides myriad business and technology benefits in addition to protecting digital assets. Regulatory requirements for cybersecurity and data protection are common across industries with documented cyber risk management practices aiding in satisfying these compliance standards.  

How Is Cyber Risk Management Related to Threat Modeling?

Threat modeling is a key contributor to effective cyber risk management, allowing security leaders to “zoom in” on specific elements of IT infrastructure, apps, or code. By identifying specific threats and vulnerabilities then analyzing how attackers can exploit those weak points, threat modeling informs the selection of risk responses and can be used to evaluate security controls. The visibility threat modeling provides enables organizations to proactively and continuously improve security postures throughout the software development lifecycle in line with secure-by-design standards.

Closing

In today’s rapidly evolving threat landscapes, and with valuable data and assets to protect, organizations must balance their cyber risk management practices against business requirements. By adopting a holistic view of and contingency plans for cyber risks, organizations can greatly improve their chances of preventing attacks and breaches.