Rethinking Cybersecurity in the Era of Digital Risk

The year 2023 is likely to be an exciting one for businesses investing in digital risk1. With the global economy recovering and technology evolving, companies are facing an unprecedented number of new risks. But with these risks come opportunities, and businesses are starting to realize that investing in digital risk mitigation is critical to securing their future success.

One recent study found that companies invest more in digital risk than ever before.2 They are using various tools and technologies to help mitigate the risks posed by cyber threats, data breaches, and other digital risks. From advanced security software and services to new processes and policies, companies are proactively protecting their data and systems.

Another key finding from the study is that businesses are starting to recognize the importance of having a well-defined strategy for digital risk management. Whether developing a comprehensive security framework, investing in employee training, or partnering with third-party providers, companies are taking steps to ensure that they have the right tools and resources to mitigate the cyber risks they face.

How does digital transformation impact cybersecurity?

As the digital era evolves, businesses across the globe are investing in digital risk3 to stay ahead of the curve. This digital transformation has brought numerous benefits but has also raised cybersecurity risks that must be addressed. Here, we discuss the impact of digital transformation on cybersecurity.

Technological Risks: Adopting new technologies like cloud computing, IoT, big data, and artificial intelligence has increased the risks for businesses4. These technologies provide new attack surfaces for cyber criminals to exploit, making it challenging for organizations to keep pace with the latest threats.

Cyber Risks: Cyber risks are a significant concern for businesses undergoing digital transformation5. Attackers are becoming increasingly sophisticated, using advanced techniques to target businesses. Digital transformation also increases the risk of unauthorized access to sensitive information, leading to data breaches and damaging the business’s reputation.

Data Leaks: With the increased usage of digital platforms and devices, the risk of data leaks has increased6. Digital transformation has made it easier for businesses to store and share large amounts of data, but it has also made it easier for cyber criminals to access that data.

Resilience Risk: Digital transformation has created a complex network of systems, devices, and applications that must work together seamlessly. Any failures in the network can impact the business operations, causing loss of data and impacting the resilience of the business.

Third-Party Compromises: Digital transformation often involves third-party services and systems that can pose a risk to the company. Third-party compromises can result in data breaches, loss of confidential information, and impact the business’s reputation.

Automation Risk: As enterprises move towards automation, the risk of cyberattacks also increases7. Automated systems are vulnerable to cyber criminals using bots to carry out attacks and compromise the systems.

Hence, digital transformation has brought numerous benefits but has also increased the risks of cyber-attacks. Businesses must take proactive measures to ensure their digital transformation journey is secure and their cyber defenses are robust. Regular security assessments, continuous monitoring, and risk management strategies are essential to mitigate the risks and ensure the security of the business.

Methods to Mitigating the digital risk

In today’s digital age, companies must be vigilant about managing digital risks. The digital environment has brought numerous benefits to organizations, but it has also created new risks that must be addressed to protect the company’s data and assets. The following steps can help you manage digital risk effectively in your organization.

• Identify Key Assets and Do an Internal Audit: The first step in managing digital risk is to identify the critical assets and data your organization holds. This will help you to determine which assets are the most vital and need the most protection. Doing an internal audit will better understand your current digital security posture, which will help you identify areas that need improvement.
• Understand the Potential Threats to Your Organization: Knowing the potential threats to your organization is essential for protecting your digital assets. Threats can come in many forms, including malware, phishing attacks, and other cyber threats. Understanding how a threat behaves can help you identify potential threats and take the necessary steps to protect your organization.
• Monitor for Unwanted Exposure: Unwanted exposure to your data can occur if it is left unsecured on an open network or if an employee accidentally shares sensitive information. It is essential to monitor your digital environment and protect your data against unauthorized access.
• Take Action and Protect Against Digital Risks: It is essential to protect against digital risks. This could include implementing security measures such as firewalls, encryption, and secure passwords, as well as training employees to follow best practices for digital security. Additionally, it is essential to have a contingency plan in case of a breach, which can help you minimize the impact of a potential violation and quickly recover from it.

Following these steps can help protect your digital assets, minimize the risk of data breaches, and keep your organization secures. By prioritizing digital risk management, you can ensure that your organization is well-positioned to succeed in the digital landscape.

Tactical Mitigations
It’s critical for organizations to be proactive in managing digital risk. Digital risk refers to the potential harm technology, and data can cause to an organization’s reputation, finances, and operations.

One way to manage digital risk is by implementing tactical mitigations. Tactical mitigations are actions organizations can take to reduce their exposure to digital risk. Here are six key tactics to consider:

• Reduce your attack surface: Minimize the number of entry points for potential attackers by limiting the number of systems, applications, and services you expose to the internet.
• Set up networking blocking actions: Use firewalls, intrusion detection systems, and other network security technologies to block incoming traffic from known malicious IP addresses and sources.
• Implement Strong Access Controls: Implement multi-factor authentication and limit administrative privileges to those who need them. This will prevent unauthorized access to sensitive systems and data.
• Enforce Data Security: Implement encryption and other data protection measures to ensure that sensitive information remains confidential and secure.
• Establish Monitoring Systems: Set up continuous monitoring of your systems and applications to detect and respond to potential threats in real-time.
• Establish Incident Response Protocols: Develop a plan for responding to security incidents, including reporting procedures and contingency plans.
• Regularly Update Security Measures: Regularly update your security measures to remain current and effective.
• Train Employees on Digital Security Best Practices: Regularly train employees on digital security best practices to ensure they are aware of the risks and how to mitigate them.

Implementing these tactical mitigations will help organizations reduce their exposure to digital risk and protect their reputation, finances, and operations.

Operational Mitigations
Organizations constantly face digital risks and threats that can impact their reputation, finances, and operations. Organizations must implement operational mitigations to effectively manage these risks to help them respond quickly and effectively to potential threats. Here are two key operational mitigations organizations can use to mitigate digital risks.

• Implement a Monitoring Strategy : Organizations should have a proactive monitoring strategy that helps them detect and respond to potential risks and threats in real-time9. This can include monitoring systems, applications, and networks for unusual activity or patterns that may indicate a potential threat. Organizations can also use log analysis, intrusion detection systems, and network security monitoring tools to detect and respond to potential risks proactively.
• Use Incident Response Monitoring as an essential component of an organization’s risk management strategy. It involves monitoring and analyzing security incidents to determine the root cause, assess the impact, and take appropriate actions to prevent similar incidents. Organizations should also have a well-defined incident response plan outlining the steps to be taken in case of a security breach or other critical incident. This can include steps for containing the incident, communicating with stakeholders, and restoring normal operations.

In conclusion, operational mitigations are essential to an organization’s risk management strategy. By implementing a monitoring strategy and using incident response monitoring, organizations can proactively detect and respond to potential risks and threats, helping to mitigate digital risks and protect their operations.

Strategic Mitigations
Digital transformation has rapidly advanced technology, making it easier for businesses to conduct their operations online. However, with this convenience comes various digital risks that organizations must be prepared to mitigate. The following are some of the strategic mitigations of digital risk that organizations can implement to reduce the impact of these risks on their operations.

• Update Risk and Threat Models: It is essential to regularly review and update your organization’s risk and threat models. This will help ensure that your organization is prepared for the latest threats and that its mitigations are up-to-date.
• Measure, Manage, and Report Digital Risk: By regularly monitoring, measuring, and reporting digital risk, organizations can ensure that they have a clear understanding of the impact that these risks are having on their operations. This information can then inform decisions about which mitigations to prioritize.

Implementing these strategic mitigations of digital risk can help organizations better prepare for potential threats. By staying vigilant and proactive in their approach to digital risk management, organizations can reduce the impact that these risks may have on their operations.

How to Manage Digital Risk in your organization

Digital risk management requires a comprehensive approach that incorporates asset risk management, vulnerability aggregation, duplication, prioritization, and workflow integration.

Asset Risk Management
Asset risk management involves identifying and assessing the critical assets of the organization that are most at risk of cyber attack. This process helps organizations to understand their most valuable assets and the potential impact of a data breach. This information can then be used to prioritize risk mitigation efforts.

Vulnerability Aggregation
Vulnerability aggregation is a process of identifying, aggregating, and prioritizing vulnerabilities in your organization’s digital assets. This information is used to develop a risk mitigation plan focusing on the most critical vulnerabilities. Vulnerability aggregation also helps organizations to understand the current state of their digital assets and the potential impact of a cyber-attack.

Deduplication is a process of removing duplicates from data and reducing the overall data volume. Deduplication helps organizations identify the most critical data and reduce the risk of data breaches. It also helps to reduce the risk of data loss and improve data management processes.

Prioritization ranks digital risks in order of importance based on the potential impact of a cyber-attack. This information can then be used to prioritize risk mitigation efforts. Prioritization also helps organizations to understand the current state of their digital assets and the potential impact of a cyber-attack.

Workflow Integration
Workflow integration is the process of integrating digital risk management processes into the organization’s existing workflows. This integration helps to ensure that risk management is integrated into all aspects of the organization’s operations and that risks are managed consistently and efficiently.

By implementing these mitigation strategies, organizations can reduce their digital risk exposure and protect their digital assets from cyber-attacks.

How does investing in a digital risk transformation help your business to mitigate cyber risk?

Concluding, companies must adopt new technologies and digital systems to remain competitive. With this digital transformation comes an increased risk of cyber-attacks and data breaches10. A successful cyber-attack has financial and reputational impacts that can devastate a company. Investing in a digital risk mitigation critical.

The digital risk mitigation process involves identifying and evaluating digital assets, understanding the potential threats to these assets, and implementing measures to protect them. By taking these approaches to digital risk management, organizations can be better prepared to prevent and respond to cyberattacks.