With new technologies emerging every day to make transactions and processes smoother and faster, comes with an increased risk of cyber attacks. Cybercriminals adapt quickly to changes in technology and exploit all new platforms.

There’s no way to stop cybercriminals in their tracks for good, but there is a way to protect your company and customer data and information:

Develop a cybersecurity risk management plan regardless of industry or size.

To ensure that your organization is prepared to deal with any cybersecurity threat, you need a flexible and responsive risk assessment program that adapts according to the changing nature of cyber threats. 

Let’s look at how this can be done effectively.

What is a risk management policy?

A risk management policy is a set of instructions for an organization to follow when dealing with cyber security risks. It is a set of guidelines designed to ensure that the organization takes the right steps to protect its data and systems.

Cybersecurity risk management is an ongoing process of identifying, analyzing, evaluating, and addressing cybersecurity threats. It is not a one-time event; it must be an ongoing process because new threats are constantly emerging.

Which companies should have a risk management policy?

The answer to this question is, "Every company."

Risk management is a process used to identify possible risks and take steps to mitigate them. It helps organizations understand how they can reduce their exposure to risk or how they can increase the likelihood of achieving their goals despite being exposed to risk. This means every company needs a risk management policy—even if they don't think they need one.

The goal of risk management is not just to prevent catastrophe; it's also about identifying opportunities for growth and progress. If a company doesn't have a risk management policy, then they are missing out on opportunities for growth and progress by failing to plan for what could happen in the future.

Cybersecurity risk management is the responsibility of everyone in the organization, not just the security team. Everyone needs to have a holistic view of what's going on to ensure they're addressing all risks appropriately.

The risk landscape has changed dramatically over the past few years—to address these challenges, organizations need to have robust policies and tools for assessing vendor risk, as well as identify internal weaknesses so they can fix them quickly before they become major problems. 

They must also mitigate IT risks by training employees or changing policies and internal controls, depending on what works best for them. 

Finally, organizations need to test their security posture regularly to always know if there are any holes in their defenses.

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Benefits of a Cyber Risk Management Policy

1. Improve and safeguard your business reputation

A major data breach can destroy your organization’s reputation, making it difficult to regain customers' trust.

To build and maintain trust with customers, a strong cybersecurity risk management program can help you prioritize critical risks so that you're equipped to deal with any impending attacks.

2. Enable and support your IT team

Your IT team will be better positioned to keep projects on track by ensuring that there is always an appropriate number of personnel and resources available during a crisis.

A cybersecurity plan can help your business better support IT, ultimately increasing productivity and efficiency.

3. Prevent revenue loss

Data breaches can affect every part of your organization, from finance to legal and everything in between. But the most obvious impact is financial: data breach insurance costs have skyrocketed over the last few years because so many organizations are experiencing them.

The average data breach cost is $3.86 million, and can take years to recover from the initial attack; moreover, businesses responsible for someone else's data are subjected to privacy laws and face fines and penalties.

4. Reduce the risk of temporary (or permanent) shutdowns

The average cost of downtime for different industries varies greatly:

• $2600 per minute for financial services

• $8400 per minute for healthcare organizations

• Over $17K per minute for manufacturers

Any attack—a ransomware infection, DDoS assault, or phishing scam—can disrupt your business and cost you time and money.

However, a risk management plan can help you better prepare for any cyber incident and mitigate potential downtime risks.

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5. Increase employee engagement, trust, and company transparency

Companies should create plans to protect shareholders, customers, and employees.

Employee information, including social security numbers, credit card data, and birth dates, among other details, is a prime target for malicious hackers.

A solid risk management strategy empowers employees to focus on what matters most: advancing the organization's goals.

6. Raise the bar for your competition

A risk management plan demonstrates to potential customers that you take their data security seriously and are prepared in case of a breach, giving you an edge over your competitors.

Now that you know the benefits of having a cybersecurity risk management policy in place, here are five steps you can take to write one.

Writing Your Cyber Risk Management Policy

A cybersecurity risk management policy is a document that outlines an organization's commitment to protecting its data and intellectual property from theft, loss, or damage. It outlines the steps that the organization will take to mitigate these risks.

The policy should be clear and concise. But before writing, you need to identify and clarify the following:

• What types of data are stored within the company's systems?

• How will employees access this data?

• Are there any restrictions on what type of information can be accessed by employees?

• How will employees store this data?

• How will employees dispose of this data when they leave their jobs?

• Have you consulted risk advisory specialists to review your cybersecurity policy plan to ensure you aren’t missing anything?

Regarding cybersecurity, you must know the risks that could compromise your company's data.

While your cybersecurity risk management policy can be tailored to fit your specific company and industry, every policy must include the following:

Step 1: Risk Identification

Identifying risks is the first step in managing potential dangers. Identify all prospective hazards and classify their severity or likelihood of happening if no precautions are taken—then take precautionary measures against them.

When assessing risk, consider both current and future risks. As technology evolves and companies restructure the risk landscape changes.

Step 2: Formulate a Risk Analysis

After identifying risks, the next step is to assess their likelihood and possible effect. For example, how vulnerable is your company to a particular risk? What would be the cost of that risk if it were realized?

Based on the potential for disruption, an organization may categorize risks as “high-, medium-, or low-impact.”

Risk analysis is used to prioritize risks and determine the most urgent threats.

Step 3: Create an Incident Response Plan

An Incident Response Plan addresses the actions you will take if a cyberattack were to occur. 

An Incident Response Plan should include identifying:

• Who will be responsible for each step in the process, who will have access to sensitive data within this group, and what type of training they will receive.

• How often you will update your policy and procedures (if applicable).

• A list of resources available for employees who need help with their personal computers or devices (for example, IT support).

Step 4: Risk Mitigation Plan

Risk mitigation is any precautionary action taken by a company to avoid or minimize the impact of potential disasters. It is extremely important to review and assess the controls in place.

Step 5: Ongoing Risk Monitoring Process

Your Cybersecurity Risk Management Policy is a living document that should be updated and revised regularly. As cyber risks evolve, so should your policy. What was once considered a minor risk might become severe enough to threaten the company, and vice-versa. Understanding your current risk profile through regular risk assessments—proactively monitoring these risks rather than just reacting to them when they occur—helps you prepare for the future.

Cybersecurity Risk Management is Made Easy With Risk Advisory Specialists

When it comes to cybersecurity risk management, there are so many different factors that you have to consider. There are a lot of resources available online that will help you learn about the basics of cyber security and how to protect yourself from hackers or other cyber threats. But when it comes time to actually implement your new knowledge, things can get complicated fast.

That's why it's critical for any organization that wants to succeed in today's digital world—whether they're a small business or a Fortune 500 company—to enlist the help of risk advisory specialists who can assist them with their risk management efforts. These specialists have years of experience working with companies large and small and know exactly what type of services they need in order to succeed in this environment.

Conclusion

It's important to have a strong cybersecurity policy in place. With so many threats out there, it can be difficult to know where to start with creating a cybersecurity policy that works for your business. For expert, professional guidance, reach out to Johanson Group risk advisory specialists who can help you identify your cybersecurity risks and come up with a proactive plan to mitigate attacks.

Are you ready to be proactive in your cybersecurity response?