What Is A Cyber Security Risk Management Process?

When we think of cyber security, we usually think of the aftermath. It goes something like this: there’s a cyber attack, and it causes damage that you have to deal with and work to repair. Or the attack is stopped by cyber security software and defences.

What is not often considered, however, is how to reduce the chances of a cyber attack, to begin with, or to appear to be less of a target to cyber attackers and other bad actors. This is part of what’s known as the cyber security risk management process.

But how does cyber security risk management work, why is it important, why is it more than preparing for and responding to cyber security threats, and how do you make it work for your business or organisation?

Here’s what we’ll unpack,

• What do you mean by risk management?
• Why is risk management important in cyber security?
• Cyber security risk management for today – and tomorrow

What do you mean by risk management?

Similar to how the term “cyber security” makes many people think of specific things, “risk management” is something many people have certain perceptions of. They might think it means reducing the risk of something – in this case, cyber attacks.

It’s true. Risk management is identifying risk. But it’s also a lot more than that.

For one, there are security controls. This can include who has access to what files and devices and even what those devices have access to in the first place.

There’s two-factor authentication, where when someone tries to access a device controlled by your business or organisation, a notification is sent to a secondary device, like a phone, that must be approved to gain access.

A cybersecurity risk assessment is part of risk management. This requires you to analyse potential areas of weakness in your business or organisation’s system, evaluate what the impact could be if they’re attacked, and then address how you could fix things if they are attacked or prevent them from being attacked, to begin with.

All this determines your appetite for risk – this is how much risk you are ok with. The answer to this question, of course, is different for everyone. While some people might tolerate some risks for their business or organisation when it comes to cyber security, others won’t tolerate much or any risk at all.

No matter the appetite for risk, there are some stats to keep in mind. According to CERT NZ, there was a 15% increase in New Zealand in reported scams and frauds in the first quarter of 2019. Of those, 70% involved victims suffering financial losses, the loss of customer information, and/or operational capacity. These losses amounted to $16.7 million, up $2.6 million from 2018. Seeing s these stats are from before the pandemic, the numbers now are even higher – likely much higher.

Featured Guide: Biggest Cyber Security Risks to NZ Businesses & How To Avoid Them

Why is risk management important in cyber security?

Risk management is itself part of your risk management strategy, sitting under your risk management framework. It’s identifying, analysing, evaluating and addressing your risk tolerances, and your security posture, and having policies and procedures in place that are understood by everyone across your business or organisation.

Risk management is key not only for risk assessments when it comes to cyber security, but so your security teams can possibly work more quickly and efficiently when a cyber attack does happen. The sooner decisive action is taken, the sooner money – and, time, since the longer an attack lasts, the more time is taken away from being able to focus on what it is your business or organisation does at its core – can be saved, or at least harm reduced.

Risk management is an ongoing process. This is because the nature and sophistication of threats – particularly cyber threats – is ever-changing.

In fact, it’s safe to say the risks from cyber attacks are greater than ever, as our world is more inter-connected than ever before and even your business or organisation – no matter what field you’re in – likely holds tremendous amounts of data about your customers, no matter who they are or how many customers you have. Similar to when a person has a health scare like a heart attack or stroke, seconds count to reduce the damage.

Risk management’s additionally important as the trends change. Some of those current trends include there not being many cyber security experts present in New Zealand – meaning it’s harder to find and retain people for your business or organisation.

And the ones you do find will likely cost more money than they used to as you’ll probably have to compete with other businesses and organisations to get cyber security experts. A Fortinet cyber security survey even found that 80% of organisations suffered one or more cyber breaches attributable to a lack of cybersecurity skills and/or awareness.

More attacks are coming from connected devices, too, and on average they are taking longer to detect because they are more sophisticated than ever before.

What all this means is the cyber security risks are greater than ever. And that makes risk management more important than ever, too.

Related: 9 Emerging Cyber Security Trends for 2023 and Beyond (4 Security Experts Give Their Guidance)

Cyber security risk management for today – and tomorrow

As we’ve discussed, cyber security risk management is an ongoing, ever-evolving process of identifying, analysing, evaluating and addressing. Plans and processes you might have today might not work tomorrow – you need to constantly review and change them if necessary to keep ahead of the many dangers.

That’s where NSP’s smart security solutions come in. We can help you understand what a cyber security risk management process is, how it can benefit your business, and why it’s your best option for risk management.

Our security solutions incorporate artificial intelligence to combat threats, identifying and neutralising them. These systems are easy to install and operate across your business or organisation, saving you time and money.

Things begin with a one-hour security consultation you can book. This way, our team can best recommend the services that would help your business or organisation the most. The time and money savings might be enough on their own. But what you really receive is peace of mind – and a firmer foundation for the best future possible.