Importance of Cyber Risk Management

Cyber risk management is essential for legality, severity and frequency, as well as other reasons.

Last week, we shared 8 best practices for managing cyber risk. These best practices are why they are so important. As technology advances, so do the challenges for risk teams. Cyber risk is the latest trend to be noticed. According to Risk.net’s 2018 survey, cyber risks ranked #1 and #2 on a list of top ten operational threats.

What is cyber risk? Cyber risk is the potential for financial loss, disruption, or reputational damage to an organization due to a failure of its IT systems. This definition is provided by the Institute of Risk Management. Cyber risk can be a serious threat. Cyber risk and managed IT services are both important concerns that must be addressed.

Cyber risk management: Why it is important

Respect the regulations

To keep up with changing environments, governments are constantly creating new laws and standards. These laws and standards are good for consumers and society, but can be expensive and require organizational changes.

Recent concerns include privacy and data management. Due to growing data breaches, the government is placing more pressure on businesses to protect this data. This has resulted in the release names, phone numbers, and email addresses of individuals as well as credit card details. In Europe, the GDPR was implemented in May and promises to impose fines of up to EUR20million for privacy breaches.

Companies can take proactive steps to lower cyber risk to increase their competitive edge within their industry.

Extremely high frequency

John Lupica from Chubb Insurance stated that cyber risks are “The only risk where someone is trying to do real damage your business every day”. Cyber risk is not an “if”, but a “when” issue in certain industries.

All organizations should be concerned about cyber risk, particularly those that store credit card numbers and sensitive consumer information. This risk cannot be avoided because technology is essential for any organization to function. Logic Manager discovered that data breaches increased by 45% in 2016 and 2017 and that this trend will continue.

Hackers are becoming more common and better-trained. Hackers use social engineering to trick people into disclosing sensitive information. You can do this by gaining their trust or by using their curiosity.

Social hackers could use victim information to their advantage, or strategically place virus-laden USB sticks to try to connect them. This article will provide more information on social engineering and how to protect yourself from it.

Hacking has become more difficult with the technological advances. Simple firewalls won’t stop organizations that want to access data. It is vital that employees are educated about cyber risks and take proactive steps to prevent them.

Interconnectivity and data sharing are becoming more common in today’s globalized world. It is essential to have access and use remote data and tools to collaborate with employees and companies spread across the globe. If managed properly, these systems can be just as secure as traditional in-house storage.

They are still a threat. According to AT&T’s Cybersecurity Insights, 85 percent of organizations share their data with outside parties. Only 28% of these organizations have established standards for managing this risk. The safest organizations are the 28% that do not expose their data outside parties.

High severity

Cyber risk is something that organizations cannot expect to see. Cybersecurity Charleston SC attacks can affect even the most powerful companies. Cyber risk can be so severe for many reasons.

This is a common mistake made by risk managers. AT&T discovered that while 65% believe they have the right security measures in place, 80% have been affected by successful cyberattacks. This is clearly a problem. It is important that employees are made aware of the consequences and severity. Cyber risk can be underestimated by small and medium-sized companies. These businesses may believe they are too small or not efficient to reduce cyber risk. They are prime targets for hackers.

For a single data breach, clients can lose faith in companies and sue them. If private information is made public, consumers will share their experiences with others. It will be difficult for the organization to prove that it is trustworthy enough to trust new customers. PwC’s study revealed that 87% of customers will transfer their data if they aren’t satisfied with how the company handles it.

Cyber risk can also cause disruptions to business operations. Cyber risk can cause an organization to go into crisis mode, making it difficult for them continue with their normal operations until the problem is fixed. Data breaches can expose trade secrets or other confidential information essential to an organization’s ability to function. If the situation isn’t contained, imitations may soon be on the market.

Cyberattacks can cause severe physical damage. Remote access to computer-controlled systems is possible. Hackers created malware in Germany that caused severe physical damage and an explosion at a steel mill. This incident and others similar to it can be read in “Cyber and Physical Threats Collide”.

Cyberattacks are still costly on average. Companies must pay for upgrades and repairs to their technology as well as legal fees, and settlements to customers whose data was compromised. Organizations are being more vulnerable to these attacks, making them more expensive. The average cyber attack cost in 2018 was $8 million. This is an increase of $3.62million from 2017.

Cyber risk can be complex and difficult to manage. Any organization cannot ignore cyber risk and that’s why IT services Charleston SC are important. These risks can have serious consequences.

ClearRisk’s Risk Management Information System, (RMIS), helps risk teams predict and prevent cyber-risks. Our system allows for the creation and sharing of risk management plans. It’s built on the most widely used cloud computing platform. It protects your system from unauthorized data and is continuously updated to maintain the highest security standards. You can find more information here. Click the link to find out more.

Call SpartanTec, Inc. now if you’re interested in learning more about cyber risk management and IT services that will protect your information against online threats.

SpartanTec, Inc.
Charleston, SC 29407
843-418-4792
https://manageditservicescharleston.com/

Serving: Myrtle Beach, North Myrtle Beach, Columbia, Wilmington, Fayetteville, Florence, Charleston