Why IT Risk Management Matters For Security | 4BIS

Risk Assessments Reduce Threat of Data Losses and Cyberattacks

A recent survey shows few IT leaders are confident in their organization’s abilities to address cybersecurity threats. Learn how your company can reduce risk  

Security professionals in a recent study expressed a lack of confidence in their ability to manage emerging IT threats. The findings reinforce the need for systematic approaches to IT security, beginning with risk management policies and procedures.

In the recently released State of Enterprise Risk Management 2020, 4500 risk specialists were asked to evaluate their organizations’ readiness to address IT threats. Just 29 percent said they were highly confident that their organizations could predict the impact of threats and vulnerabilities.

As businesses increasingly use cloud solutions, mobile devices and the Internet of Things in their work, the threat of having data and systems hacked increases. What’s more, the types of technology used in business and types of threats are changing rapidly. Often, there are too few internal staff with the skills and experience to combat threats and address a dizzying array of potential vulnerabilities. That’s why IT risk management matters.

What Is IT Risk Management?

IT risk management is a collection of solutions, guided by policies and procedures, designed to mitigate the impact disruptions to your technology and, as a result, your business. It’s a practice that identifies and ranks vulnerabilities, develops solutions and deploys and tests those solutions.

Often, IT risk management is not done internally, but with the help of a third-party vendor like 4BIS, which has the capabilities to assess existing technology, recommend and develop solutions, monitor progress, and train employees.

What Are the Benefits of IT Risk Management?

IT is at the heart of most businesses today. When technology is compromised, so is your business. Employees cannot work. Customers cannot get answers. Websites and online tools are inaccessible.

IT risk management has several benefits to your business, including:

• A risk-focused corporate culture at all levels of the organization through awareness, education, and solutions that directly affect how work is done
• Standardized risk reporting, data collection around risk and analysis
• Fewer breaches and other successful IT incidents, leading to brand and reputational enhancement
• Cost reduction via proactive, preventative measures and less remediation and incident response costs
• Improved supply chain management and partnerships with transparent, demonstrable approaches to cybersecurity
• Business continuity solutions to reduce downtime in the event of a natural or human disaster
• Operational efficiency with the elimination or consolidation of disparate risk management solutions across the organization
• Better regulatory management and compliance reporting
• Business development opportunities with solutions that meet institutional regulatory standards, such as eligibility for government contracts
• Better decision-making based on data transparency and confidence in security measures

What Are the Risks of Not Having IT Risk Management?

The 2019 Cost of a Data Breach Study by the Ponemon Institute and IBM illustrates the dire consequences of data loss for your institution. The average data breach costs companies $3.92 million, with the average breach leaving 25,575 records compromised.

While the dollar costs are significant, consider the other impacts on your business. There’s the reputational cost from customers and potential customers who will look elsewhere for the products and services you provide. There are the regulatory costs for being out of compliance. There are possible legal liabilities to the organization and its leadership that a data breach can bring.

How Do We Begin IT Risk Management?

There are several approaches your organization can take to managing IT risk. First, understand some definitions:

• Threats. These are the dangers that are caused by an exploited vulnerability. Examples of threats are breaches, reputational harm, hacking or natural disaster
• Vulnerabilities. These are threats that can be exploited by an attacker using a tool or technique to find and connect to a system’s weaknesses
• Asset Value. The calculable value of information to your organization

Risk can be defined as the product of threats, vulnerabilities and asset values.

Many organizations approach risk using the following steps:

• Identification. Potential risks are identified and defined
• Analysis. Risks are assessed for their severity and impact on the business
• Ranking. Risks are ranked by likelihood and severity
• Solve. Solutions are designed and deployed for the most critically defined risks
• Test and Evaluate. Solutions are tested and the results are evaluated to inform enhancements and modifications

4BIS helps Cincinnati-area businesses assess potential risks and develop proven solutions that are custom-designed for your company’s needs. To learn more about our risk assessment and cybersecurity solutions, contact us today.