Cyber risk is a business risk

RENELLE MURRAY

As organisations in TT embrace digital technologies, the truth is that implementing new technology introduces known and unknown risks.

The consequences of these vulnerabilities extend beyond financial losses, affecting an organisation's reputation, legal standing and customer trust.

All industry sectors have become fertile ground for malicious cyber attacks as attackers consistently test their systems and applications for weaknesses, some using sophisticated technologies such as bots to automate attacks.

Understanding the local threat landscape

Recent TT cyber-security incident-response team data paints a stark picture of the evolving local cyber-security landscape.

In 2023, cyber incidents surged by over 60 per cent compared to the previous year.

Let’s face it: the statistics underscore the urgency of addressing cyber-security challenges proactively and effectively to mitigate potential attack vectors.

Cultivating proactive cyber-risk management

To address growing threats, organisations must adopt proactive strategies to account for vulnerabilities and potential attack vectors.

It's essential that the executive management and boards of directors understand that cyber security goes beyond mere ICT tools like network security monitoring and firewalls: it also requires financial investment in risk-management strategies and personnel resources to protect critical information and infrastructure.

Understanding your cyber risk

Why are cyber attacks successful?

Cyber attacks are successful for various reasons, and their success often depends on the capabilities and motivations of the attackers, as well as vulnerabilities, weak security measures and ineffective controls.

How do organisations prevent cyber attacks?

There is no hard-and-fast answer to that question, because it depends on the organisation.

To minimise the likelihood of a successful attack and reduce the impact of any incidents, organisations can implement risk-mitigation strategies to identify, evaluate, assess and mitigate risks.

Cyber-security risk strategies are crucial.

The advent of technologies such as cloud computing, big data analytics, Internet of Things (IoT) devices and artificial intelligence has revolutionised business processes, but not without introducing corresponding risks such as:

Data breaches: Unauthorised and exposed access to sensitive information can lead to identity theft, financial fraud and reputational damage.

Ransomware: Malicious software that encrypts data, with attackers demanding a ransom for decryption, can paralyse businesses and government agencies.

Phishing: Deceptive e-mails or websites trick users into revealing personal information or downloading malicious software.

Insider threats: Employees or insiders with access to systems may intentionally or accidentally compromise security.

Third-party/vendor vulnerabilities: Weak links in the supply chain can lead to compromise or the spread of threats.

Make cyber-risk management your “business”

While complete elimination of cyber risks may be difficult to achieve, implementing risk-mitigation strategies and actions can significantly reduce exposure.

Cyber security and risk governance: Establish executive management and board-level committees for oversight and accountability.

Periodic cyber-risk assessment: Identify, evaluate, and monitor cyber risks and threats adversely affecting your organisation and develop relevant corrective actions to reduce exposures.

Security by design: Integrate cyber security from the outset of technology implementation, process changes and organisational changes, ensuring security measures are not an afterthought.

Network security monitoring and controls solutions: Implementing technical security solutions is essential to prevent and detect possible attacks, such as intrusion detection and prevention systems, anti-virus, multi-factor authentication, network segmentation, and access control policies.

Enterprise-wide cyber-security education and awareness: 95 per cent of breaches are due to users and staff members misusing resources or being unaware of dangers. Invest in training programmes to educate employees about cyber-security best practices and create a security-aware organisational culture.

Assess third-party risk exposure: Incorporate vetting and monitoring of third-party vendors and partners to minimise cyber risks, as they are also potential risk vectors.

Data backup and recovery: Regularly backup data and test recovery procedures to minimise the impact of cyber attacks.

Security assessments and audits: Regularly assess your organisation’s cyber-security posture to address vulnerabilities. This can include penetration tests, vulnerability scans and cyber audits.

Incident response plan: Developing a comprehensive incident-response plan can enhance the capability to respond to cyber incidents. This should include crisis communication protocols that enable accurate, consistent, and timely communication with stakeholders.

Cyber security should never be left to chance.

Understanding the value of your assets is the first step to protecting them appropriately in our ever-evolving digital landscape.

While no strategy is the silver bullet in eliminating risks, the dynamic nature of cyber threats requires risk-management strategies and ongoing education to continuously navigate the threats.

This article was submitted by the Unit Trust Corporation.