Rapid technological advancement and rising global connectivity are reshaping the way the world functions.
From higher productivity to improved customer satisfaction, technology has played a critical role in the growth of businesses worldwide. On the flip side, technological advancements have also made organizations increasingly vulnerable to digital risks.
But that doesn’t mean businesses should compromise on growth and advancement for the sake of security.
Organizations that understand how to detect threats and utilize preventive security measures and controls, proactive solutions, and thorough strategies will be better poised to meet the security problems inherent in modern digital environments.
Let’s take a closer look at the digital risks to your business and how you can protect your business and your ROI.
Types of Digital Risks to Your Business
Digital risks are increasing in the business world due to the rapid adoption of new disruptive technologies. These risks are more pervasive than cybersecurity risks and are seen in a wide variety of industries.
On a broad scale, digital risks can be classified into physical, technical, and administrative risks.
The following risks are the most prevalent in today’s digital world. Your business should treat them as top priorities for mitigation.
- Cybersecurity risk. Cyberattacks like ransomware and DDoS can cause significant disruption to any business. These types of attacks continue to evolve as businesses become more technology driven.
- Data privacy risk. As we move toward a knowledge-based economy, data has become the most valued commodity in the world. This has resulted in hackers stealing critical business data and misusing it for personal gain.
- Compliance risk. Businesses need to adhere to various regulations regarding data privacy, cybersecurity, organizational standards of practice, and more. Any violation can attract heavy fines and penalties.
- Third-party risk. Outsourcing certain services to third parties can compromise the security of your IT infrastructure. For instance, a software tool you develop with an external vendor may introduce some vulnerabilities to your otherwise intact digital environment.
- Resiliency risk. This type of risk affects the ability of a business to bounce back after an unexpected disaster.
- Risks due to human errors. In 2021, 82% of data breaches involved some kind of human element. Whether it’s falling prey to phishing scams, credential stuffing, or misusing work devices, human errors can be costly for organizations if they go unchecked.
- Automation risks. While automation is reshaping the tech industry for the better, it has the potential to increase threats like compatibility risks, governance risks, and more.
- Cloud storage risks. The flexibility, ease of use, and affordability offered by the cloud make it one of the most widely used options for backup and storage. However, the cloud is also prone to risks like lack of control over data, data leakage, data privacy, and shared servers.
Why Is Risk Assessment a Critical Part of Managing Digital Risks?
The best way to manage digital risks to your business is through regular comprehensive security risk assessments. Without this type of extensive examination, how can you know what your vulnerabilities or gaps are and where your biggest security challenges lie?
Risk assessments help you measure your security posture against internal and digital threats and determine how equipped you are to deal with them. When you perform a security risk assessment, you can proactively:
- Identify vulnerabilities. Learn which part of your digital environment is vulnerable to security threats. Identify which systems are likely to be targeted by attackers and incorporate measures to strengthen these systems. Without a risk assessment, you don’t stand a chance of improving your digital security posture against these vulnerabilities.
- Review and bolster security controls. In most cases, security incidents happen due to a lack of controls in the process. For instance, without proper cybersecurity awareness and best practices training, employees are unlikely to follow security protocols. This can result in human error-related losses. Based on the findings of your risk assessment, you can upgrade your security controls to incorporate preventive measures against various risks.
- Track and quantify risks. To effectively manage digital risks, you need to know how they impact your business. With a risk assessment, you can quantify your risk by identifying the potential losses posed by each type of threat. This will help you incorporate necessary risk-mitigation strategies to prevent exposure.
What Is the Value of a Risk Assessment?
IT and security budgets can be a difficult sell for management.
Everyone understands the consequences of a lack of investment in security measures. But it isn’t easy or simple to put an exact ROI figure on security investments. The value of a risk assessment is based on how you choose to act with the information you get from it.
When it comes to budgeting for risk assessments, the real question is, “What is the cost of not making this investment?”
Consider the example of a major data breach. The real risk of a data breach is what you stand to lose in the aftermath of an attack. If your business is dealing with valuable customer data, a data breach can result in unrecoverable financial losses as well as reputation damage. It could also result in regulatory noncompliance, attracting heavy penalties from regulators.
Reviving a business after a major breach can be nearly impossible.
Viewed this way, the cost of investment in security solutions and cyber insurance is negligible since it concerns the survival of the business. You may not be able to measure the exact ROI of the airbags in your car, but that doesn’t mean your survival isn’t dependent on them.
Similarly, the information and insights gained from routine risk analyses are critical to the operation, resilience posture, and long-term success of your business.
Assess the Digital Risks to Your Business With Help From SOL-I.S.
Monitoring and managing the digital risks to your business should be a routine process that is part of your overall operational strategy. If this isn’t included in your current strategy, what’s holding you back?
Contact the team at SOL-I.S. today to discuss your security needs, perform a complete risk assessment of your digital infrastructure, and start building a resilient security posture against looming threats.