Corporate information security risk management is undoubtedly a tough job, especially when we know that Businesses keep generating large volumes of data and allow cyber threats to evolve.
Now some people may blame control frameworks, but these are simply cataloging the possibilities. But I would say that broken risk models are to be blamed. They leverage a “need to catch them all approach” and pretend that there is a linear relationship between loss exposure and security controls. This ignores many crucial variables like attacker capability, frequency of attack, and the organization’s tolerance for loss.
Now, this approach finds its way into auditing frameworks very often, but it treats every missing or deficient thing as a risk, and this has allowed risk statements to express zero appetites to make their way to corporate boards and senior executives. For any Organization with a limited budget, the risk appetite statements “we don’t accept any cyber-related risk” are virtually impossible to put into action. This means that they will have to spend every dime to avoid a loss, but still, no one can guarantee a future with zero incidents.
However, statements about loss and risk should focus on the range of the amounts that could be lost and the timelines over which these losses may occur. This is where effective risk management plays a vital role.
Effective Risk Management
Effective risk management allows any Business to attain an acceptable amount of loss over time with the least amount of capital expenditure. It helps balance the money spent today to reduce risk against the probability of some amount of loss in the future. Good risk management is not about perfect risk avoidance, because this notion would choke off innovation and good Business management.
Risk reduction investments are all about curtailment. Business innovation can be curtailed without the right amount of freedom to operate without safeguards in place.
Do you know what is the most important thing if you intend to navigate risk and approach risk elimination through a security control process? Having a good model that represents the nature of risk accurately. But that’s not all. This model should support the modern needs of Organizations, like a budget for risk allocation or the purchase of cyber insurance.
The cybersecurity experts at Neumetric believe that effective risk management can help an Organization to get where it wants and avoid pitfalls and surprises along the way. This way Organizations can achieve their Business objectives and with effective risk management, there will be more informed risk-taking and decision making.
Neumetric, a cybersecurity services, consulting & products Organization, can help you reduce your security cost without compromising your security posture. Our years of in-depth experience in handling security for Organizations of all sizes & in multiple industries make it easier for us to quickly execute cost-cutting activities that do not bring value to you, while you continue focusing on the Business objectives of the Organization.