Risk management explained

How risk management strengthens cybersecurity

Risk management is becoming increasingly more widespread in both recognized international standards and in legislation such as GDPR and NIS2 – and for good reason. When done correctly, risk management is a powerful tool to improve cybersecurity, not just a desk exercise or paper tiger.

Although risk management may seem both abstract and complex, it is an actionable approach to building a strong cybersecurity foundation.

The importance of risk management

Starting by identifying and assessing multiple risks allows you to prioritize risks efficiently. Taking your current security measures into account, you can determine the most critical areas, ensuring that the most severe risks are addressed first, while avoiding wasting time on minor issues. 

Risk management strengthens your organization’s decision making, increasing the efficiency of your security work. Good risk management is proactive, and even if some risks cannot be entirely prevented, it equips you to handle threats and vulnerabilities effectively.

Getting started with risk management

Our recommendation is to start by establishing a basic methodology. A simple spreadsheet provides you with all you need at this point – there is no need to invest in complex risk management tools from the get go.

An effective risk register should include:

ID: A unique identifier for each risk.
Risk description: A concise description of the risk.
Risk owners: Individuals or teams responsible for managing the risk.
Likelihood:Probability of risk occurrence.
Impact: Potential consequences if the risk occurs.
Overall rating: A score that combines likelihood and impact to prioritize risks.
Treatment: Actions taken to mitigate the risk.
Treatment plan: A detailed remediation plan.
Residual likelihood: Probability of the risk occurring after remediation.
Residual impact: Potential consequences if the risk occurs after remediation.

Once the methodology is established, you identify the risks, preferably drawing on internal knowledge and inspiration from industry news and other sources. When you have identified the risks, assess each risk on (1) likelihood of occurrence and (2) potential impact. 

There is no one size fits all; organizations differ in size, industry and security posture, so likelihood and impact will vary. When likelihood and impact have been determined, multiply the numbers, to get an overall rating, also known as the risk level.

Risk assessment and action plans

When the risks have been assessed, turn your attention to treating high-priority risks. If your organization already has determined a risk appetite level, this can guide you as risks exceeding this level should be treated.

An example of a significant risk could be “malware leads to breach of confidential data”. Possible measures to prevent this risk could include implementing a managed Security Operation Center service, using EDR, access controls and/or providing awareness training. 

Based on the risk assessment, you should determine which treatments to implement, based on criticality and the organization’s resources. Moreover, implementing free, easy and simple measures, like enabling DMARC for email, should be prioritized early in the process.

Most importantly, remember that risk management is an ongoing process – not a one-time exercise. Review and update the risk register regularly and assess existing risks and new risks on an ongoing basis. You should engage top management and other key personnel for their perspective on different risks. Without consistent effort, your risk management plan will become an ineffective paper exercise, offering a false sense of security.

What’s next?

We strongly recommend that you start today. Risk management ensures measures are implemented in a structured manner, reducing the likelihood of implementation becoming a guessing game.

A final word of advice, the implementation of a risk register and compliance should not be the goal of risk management. Rather, risk management is a tool to create a resilient and continuously improve information security culture and cybersecurity.

If you are ready to discuss implementing risk management in your organization, please reach out to us here.