Cybersecurity Risk Management

Risk management in cybersecurity has never been more important. Cybercrime is forecast to cost $9.22 trillion globally in 2024 and further surge to $13.82 trillion by 2028.¹ Cybersecurity will take center stage in business budgets, with 51% of organizations planning to increase their investments in response to recent breaches.²

The best time to prepare for a cyberattack is before it happens. Keep reading to better understand the types of cyber risks and how cybersecurity experts develop systems to keep organizations safe.

Many companies install security software before implementing security measures. Since then, cyberattacks have become more complex. Cybercrime is far more common and broader than ever in the current threat environment.

Information security risks play a critical role in protecting information and digital assets from hackers, cybercriminals and other unauthorized individuals. With a lack of effective cyber risk management policies, organizations are likely to face an attack without a means of mitigating the risks in order to survive.

Businesses and government agencies face a variety of cybersecurity threats, but the most common types of cyberattacks include malware, phishing emails and man-in-the-middle attacks.³

Malware: malicious software that infects your organization’s data or computer systems–this includes ransomware, which locks a portion of, or the entire system until a payment is made

Phishing: an email-based attack that appears to come from a reputable source, designed to steal information from an unsuspecting target.

Man-in-the-middle attack: a type of eavesdropping attack wherein cybercriminals steal data—they can do this using unsecured Wi-Fi networks or previously installed malware 

What is the difference between risk assessment, risk management and risk analysis?

Cybersecurity risks are identified and managed primarily through different security configurations. Risk assessment, risk management and risk analysis are distinct yet interconnected processes in cybersecurity.

Risk Assessment: identifying and evaluating potential cybersecurity threats and vulnerabilities within an organization. It’s the process of understanding what could go wrong, the likelihood of those events happening and the potential impact on the organization.

Risk Analysis: quantifies the potential impacts and determines the severity of each identified risk. It involves assessing the likelihood and impact of each risk to prioritize them accordingly.

Risk Management: overarching process that includes both risk assessment and risk analysis. It involves developing strategies to mitigate, transfer, accept or avoid identified risks. Risk management also includes continuous monitoring and adjusting strategies as new risks emerge or existing risks evolve.

In managing the risk, the organization determines the risk and analyzes the potential impacts it may have. A cybersecurity risk assessment is key to a company’s cyber risk and control risk mitigation strategy. The Cybersecurity and Infrastructure Security Agency (CISA) recommends a six-step process for cybersecurity risk assessments and analysis:⁴

1. Identify and document network asset vulnerabilities
2. Identify and use sources of cybersecurity intelligence
3. Identify and document both internal and external threats
4. Identify possible mission impacts
5. Use threats, vulnerabilities, likelihoods and impacts to determine risk
6. Identify and prioritize risk response
   

What is the difference between managing risk and managing vulnerability?

Risk Management is the broad process that involves identifying, assessing and addressing potential risks that could impact an organization. It includes the overall strategy to protect the organization from various threats, including vulnerabilities, by prioritizing and mitigating these risks based on their potential impact and likelihood.

Vulnerability Management is a more specific aspect of risk management. It focuses on identifying, assessing and addressing weaknesses or flaws within systems, processes or software that could be exploited by threats. Managing vulnerabilities is about strengthening these weak points to reduce the organization's overall risk exposure.

What are the benefits of cybersecurity risk management?

Cybersecurity risk management is a crucial tool for organizations to prevent cybercrime and data breaches. It’s essential to have an effective security, compliance operations and risk transfer strategy in place.

You can use a number of cybersecurity tools to aid in your organization’s IT risk management process. Some of these risk analysis tools are free, while others function on a subscription or consultation basis. When comparing risk management tools, be sure to select one that aligns with the needs you’ve already documented.

Let us look more at the cybersecurity management processes for each phase and develop an overall strategy.

Cybersecurity Frameworks

Risk management has no special purpose. However, businesses can make their own metric that fits their particular needs but they also employ different methodologies and approaches that have endured. Several industry experts create risk management frameworks.

What are the five elements of cyber risk management?

The NIST Framework offers a solid framework for managing cybersecurity risks. It is characterized by five elements – Detect, Protect, Recognize, Respond and Recover – that provide the framework and support companies in strengthening their cybersecurity.

First, you will want to align any strategies you apply to risk management against your business strategies in order to prevent any controls from blocking essential business functions. Then, you’ll need to run a risk assessment to identify vulnerabilities. Next, you should develop a strategy to mitigate these risks. Develop a solid response plan to structure your organizational reaction in the event of a cybersecurity breach. Finally, make sure your cybersecurity system undergoes regular audits and testing to stay ahead of the threats. Of course, your plan should be customized to your business’ needs.

A solid cybersecurity risk management plan or approach will utilize preventive, detective and corrective measures. Preventive measures create barriers for potential cyber intruders with firewalls or antivirus software that denies entry. Detective measures function more like a white blood cell, finding and eliminating the threat. Finally, corrective actions refer to the protocols and procedures your organization enacts in case of a breach.

Of course, your system is secure only if it’s up to date. That’s why you must continually monitor and evaluate both your internal data and systems and the threats that may be on the horizon.

Employee training is essential for your organization’s cyber health. One study found that half of employees surveyed admitted they made a mistake that compromised their organization’s cybersecurity posture.⁵ The same study suggested that human error is to blame for 88% of data breaches, so training employees to prevent data breaches should be the top priority.⁶

The best security awareness training programs combine education and application to teach employees best practices. For instance, many programs randomly generate fake phishing emails to improve employees’ ability to spot them and decrease their effectiveness.

In the U.S., no single federal law governs cybersecurity for all organizations but attempts at regulation are ongoing. Most laws deal with how your security team controls the type of data your organization collects, so the laws you’ll follow for compliance will depend on the sort of data you collect.⁷

Certain industries in the private sector in the U.S. are subject to federal regulation. For instance, the Health Insurance Portability and Accountability Act (HIPAA) covers medical data shared between a patient and a covered provider, meaning medical data stored at rest should be encrypted.⁸ Likewise, the Gramm-Leach-Bliley Act requires financial institutions to make customers aware if their sensitive data has been compromised in a cybersecurity breach.⁹

In October 2023, the British Library fell victim to a cyberattack orchestrated by a “ransomware-for-hire” group.¹⁰ The attack landed almost 500,000 stolen files for sale on the dark web. As it turns out, hackers attacked both the British Library and the U.S. Library of Congress in coordinated attacks.¹¹

Why did one attack succeed while the other was thwarted? Hackers' attempts to breach the Library of Congress's security were blocked by a simple two-factor authentication process, which effectively denied access to unauthorized users. In this brief case study, the British Library system was compromised because it failed to implement a two-factor authentication, meaning unauthorized users could gain access via stolen or compromised credentials.¹²

As threats emerge and evolve, the need for skilled cybersecurity professionals grows as well. Consider getting into the arena with an Online MS in Cybersecurity from Yeshiva University. This program is designed with flexibility in mind, so students can complete it entirely online, either full- or part-time. Plus, 95% of graduates are employed within six months of graduation.¹³

If you want to learn how to both analyze risks and prevent cyber threats with quality cybersecurity systems, contact an admissions outreach advisor today.