Risk mitigation should address threat, vulnerability and consequence

Keeping a company’s network and data safe from a sophisticated and diverse array of cyberthreats is a daunting task. CISOs and security teams have to contend with an increasingly dynamic and sophisticated threat environment that includes exploits that evade detection by “living off the land” to wiperware that maliciously erases data on an infected device to the rise of Cybercrime-as-a-Service.

Although a traditional approach to cybersecurity typically revolves around mitigating threats and vulnerabilities, these defences are no longer enough to protect businesses effectively. There is now a need for a more comprehensive, holistic approach to risk management. Today, CISOs need to consider ways to reduce the potential impact and consequences of a cyberattack across the entire organization, not just inside an IT network.

Understanding Cyber Risk

To effectively manage cyber risks, it's essential for CISOs and security teams to have a deep understanding of the concept of risk itself. The definition of cyber risk includes the potential financial loss, disruption, or damage to a company's reputation because of a cyberattack. It can be viewed as an equation that factors in the likelihood of an attack based on threats, the organization's vulnerabilities, and the potential consequences of a breach. In other words, Cyber Risk = Threat x Vulnerability x Consequence.

To devise effective risk mitigation strategies, it’s critical to assess all three factors: threat, vulnerability, and consequence. If you focus only on threats and vulnerabilities without understanding the consequences, you might end up with risk assessment and mitigation gaps.

CISOs must be able to identify and assess potential threats, including those from both external and internal sources. They must also comprehensively understand the organization's assets and vulnerabilities, including the IT infrastructure, data systems, and employee workforce. And they must be able to quantify the potential consequences of a cyberattack, including financial losses, reputational damage, and operational disruptions.

Effective Communication and Collaboration

Effective cyber-risk management needs to involve the entire organization, particularly as everyone has a role to play in identifying and managing the consequences of a cyber incident.  CISOs must effectively communicate cyber risks and its implications to all of the employees at the company and give them the required training and resources they need to protect the organization. CISOs should also collaborate with other departments, such as legal, finance, and human resources, to ensure that cyber risks are considered in every aspect of the organization's operations. Those other departments in turn must be part of the process for assessing and devising ways to reduce the potential impact of a cyber incident. 

A Holistic Approach to Risk Management

Taking a holistic approach to cyber-risk management involves several steps, including:

1. Identify threats: Continuously monitor the threat landscape to identify new and emerging threats. Also, assess the likelihood of each threat impacting the company.
2. Monitor vulnerabilities: Conduct regular vulnerability reviews to identify and prioritize weaknesses in the organization's IT infrastructure, data systems, and employee practices.
3. Assess potential impact: Working with the entire enterprise, understand how a cyber incident is likely to impact the business. Assess which impacts are of greatest concern.
4. Develop and implement controls: Set up and execute a comprehensive set of controls to mitigate cyberthreats, vulnerabilities, and consequences. These controls may include technical measures, such as firewalls and intrusion detection systems, as well as procedural measures, such as security awareness training and incident response plans.
5. Monitor and measure: Continuously monitor the organization's security and resilience posture and look for ways to reduce the impact of an incident. Measure the effectiveness of risk management efforts and regularly review and update risk management plans as needed.

Regular Reassessment

Cyber-risk management is an ongoing process not a one-time task. It requires regular reassessment of risks introduced by operation and technology changes or the discovery of new attack techniques. Because attackers continuously evolve their methods, security teams must also be able to adapt their risk management strategies accordingly.

Communication is key to implementing new or updated risk management plans across the organization. Although cyber-risk management may seem overwhelming, particularly for companies that handle sensitive information, by following established processes and ensuring that everyone is involved, it's possible to be resilient against cyber risks.

By taking a holistic and proactive approach to cyber-risk management, CISOs can help their organizations protect their valuable assets, maintain their reputation, and ensure their continued success.

The article has been written by Vivek Srivastava, Country Manager, India & SAARC, Fortinet