How to Choose the Best Digital Risk Management Platform

Published On : 2023-01-18

What is Digital Risk Management Software?

Digital risk protection services help organizations identify, assess, and prioritize potential risks to their business operations. These risks can include financial, operational, and compliance-related risks and risks related to natural disasters, cyberattacks, and other external factors.

The main purpose of risk management software is to provide organizations with a centralized platform to manage and mitigate cyber risks and monitor and track the effectiveness of their risk management framework cybersecurity strategies. It can also help organizations to comply with regulatory requirements, such as those related to data privacy and security.

When choosing Digital risk management software, it’s important to consider the specific needs of the organization and the types of risks it faces. It’s also important to choose user-friendly software that can be easily integrated with other systems.

Importance of digital risk management software

Cybersecurity risk management framework is becoming increasingly important for organizations of all sizes as technology and reliance on digital systems continue to grow. With the increasing amount of sensitive data being stored and shared digitally, organizations are becoming more vulnerable to cyber attacks, data breaches, and other digital threats. Digital risk management software can help organizations to identify, assess, and mitigate these cyber risks, and protect their sensitive information and assets.

Here are some key reasons why digital risk management software is important:

Cybersecurity: Digital risk management software can help organizations to protect against cyber attacks, such as malware, phishing, and ransomware. It can also help organizations identify and respond to potential vulnerabilities in their systems and take measures to prevent them from being exploited.
Compliance: Digital risk management software can help organizations to stay compliant with regulations and laws related to data privacy and security, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).
Business continuity: Digital risk management software can help organizations to prepare for and respond to disruptions caused by cyber attacks, data breaches, and other digital threats. It can also help organizations to develop and implement recovery plans in the event of a disruption.
Supply chain management: Digital risk management software can help organizations to manage risks related to supply chain disruptions and disruptions in the supply chain. It can monitor and track the performance of suppliers, identify potential risks and also helps to develop mitigation strategies.
Cost-effective: Digital risk management software can help organizations to save costs by identifying potential risks and issues early on before they become major problems. It can also help organizations to avoid costly penalties and fines related to non-compliance.

The most common digital risks in a time of crisis

The COVID-19 pandemic has accelerated the shift to digital systems and remote work, making it more important than ever for organizations to be aware of digital risks. Here are some of the most common digital risks that organizations may face in the time of crisis:

Cyber attacks: With more employees working remotely and accessing sensitive data from personal devices, organizations are at a higher risk of cyber attacks such as phishing scams and malware.
Cloud security: Remote work has increased cloud services and storage use, but this also increases the risk of data breaches and other security incidents. Organizations need to ensure that they have adequate security measures in place to protect their data in the cloud.
Remote work security can increase the risk of data breaches and other security incidents, as employees may access sensitive information from unsecured networks and devices.

Steps to manage digital risk in an effective way

Managing digital risk is a critical task for organizations of all sizes. It involves identifying potential risks, assessing their likelihood and impact, and taking steps to mitigate or eliminate them. Here are some steps that organizations can take to manage digital risks effectively:

Identify potential risks: Organizations should conduct a comprehensive digital risk assessment to identify potential digital risks, such as cyber-attacks, data breaches, and system failures. They should also consider the impact these risks could have on their operations, reputation, and bottom line.
Assess the likelihood and impact of risks: Organizations should assess the likelihood of each identified risk occurring and its potential impact on the organization. This will help them to prioritize their risk management efforts and focus on the most significant risks.
Develop a risk management plan: Organizations should develop a cyber risk management process that outlines the steps they will take to mitigate or eliminate identified risks. The plan should include specific measures to address each identified risk and should be regularly reviewed and updated.
Implement security measures: Organizations should implement robust security measures to protect against digital risks. This includes implementing firewalls, intrusion detection systems, and encryption and training employees on how to identify and respond to digital risks.
Monitor and review: Organizations should continuously monitor and review their digital systems for potential risks, and take steps to address them as soon as possible. This includes regular security assessments, penetration testing, and vulnerability scanning.
Business Continuity and Disaster Recovery: Organizations should have a plan in place to ensure continuity of operations in case of a disruption, including a disaster recovery plan that outlines steps to be taken in the event of a data breach or system failure.
Supply Chain management: Organizations should also be aware of potential digital risks in their supply chain and take steps to mitigate them. This includes monitoring the performance of suppliers, identifying potential risks, and developing mitigation strategies.
Communication and Training: Organizations should communicate the risk management plan and related policies to all employees and provide them with training on identifying and responding to digital risks.

Feature of the best digital risk management software

When looking for digital risk management software, it’s important to consider its features. Here are some key features that the best digital risk management software should have:

Risk Assessment and Analysis: The software should provide a comprehensive view of an organization’s digital risks, including the likelihood and impact of each risk. This feature should also provide the ability to cyber risk analysis as they arise.
Real-time Monitoring: The software should have the capability of monitoring digital systems in real time and provide alerts when potential risks are identified. This feature should also track and analyze trends in digital risks over time.
Compliance Management: The software should help organizations stay compliant with regulations and laws related to data privacy and security, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA)
Business Continuity: The software should help organizations prepare for and manage risks related to natural disasters, cyber-attacks, and other external factors that could disrupt business operations. It should also provide the ability to develop and implement recovery plans in the event of a disruption.
Supply Chain Management: The software should help organizations manage risks related to supply chain disruptions and disruptions in the supply chain. It should monitor and track the performance of suppliers, identify potential risks and also helps to develop mitigation strategies.
Integration: The software should integrate with other systems, such as CRM and ERP systems, to provide a comprehensive view of the organization’s digital risks.
User-friendly interface: The software should have a user-friendly interface that is easy to navigate and provides quick access to important information and alerts.
Support and maintenance: The software should have a dedicated support team that can provide assistance and troubleshoots any issues that may arise.

In conclusion, the best digital risk management software should provide a comprehensive view of an organization’s digital risks, real-time monitoring, compliance management, business continuity, supply chain management, integration, user-friendly interface, and support and maintenance. Organizations should carefully evaluate the features of different software options to ensure they choose a solution that meets their needs.