Controlling Cyber Risks and Fraud by Risk Assessment
In today’s fast-paced digital world, where technology is constantly evolving, cyber security has become increasingly important. With the rise of new technologies, there are also new and unknown risks that organizations must address in order to protect their internet connected systems, users, and networks. This is where cyber security risk assessment comes into play.
Digital transformation has become a hot topic in recent years, especially for societies that embrace innovation and are quick to adopt new technologies. As organizations strive to keep up with the latest trends and bring their customers into the digital realm, it is crucial for them to understand and manage the risks associated with these new technologies.
As the Senior IT Director of my institution, I have been leading a team that developed and implemented an IT risk management methodology several years ago. From my experience, I can confidently say that risk management is a fundamental building block of cyber security. While some may struggle to see the direct relationship between these two concepts, it is important to understand how risk analysis can play a crucial role in fraud prevention.
Many may question the need for risk analysis when they can simply focus on implementing cyber security measures directly. However, it is often unknown where new technologies and applications may have vulnerabilities and risks. Even if there is a general awareness, these risks can vary from institution to institution during the implementation and adaptation process. A comprehensive risk assessment study is the only way to uncover these threats and vulnerabilities before any incident occurs, allowing organizations to take necessary precautions.
When it comes to new products and technologies, traditional cyber security tools may help uncover some security and system vulnerabilities. However, it takes time for these security products to adapt and provide stronger controls for new technologies. The greatest risk lies in the process of adapting and integrating security products with new technologies. This is where cyber security risk assessment can be instrumental in preventing potential vulnerabilities and providing stronger measures.
A well-executed cyber security risk assessment is critical for organizations to identify and prioritize potential risks. By following a methodology like the one I will explain in this article, organizations can create action plans to mitigate the identified risks. Without a risk assessment process in place, organizations may be vulnerable to data breaches, phishing attempts, and cyberattacks, which can result in significant financial and reputational damages.
Conducting regular cyber security risk assessments is essential for any organization to maintain control over potential vulnerabilities and comply with new regulations and laws. These assessments not only reveal potential threats and vulnerabilities in the short term but also provide a foundation for future evaluations. By regularly assessing and updating risk assessments, organizations can stay ahead of potential threats and protect their assets effectively.
To begin the risk assessment process, it is important to first understand the various cyber security threats that exist. While it is impossible to list all the threats, I will provide a general working methodology with an example set of common threats:
1. Phishing
2. Ransomware
3. Malicious Software
4. Social Engineering
5. Denial-of-Service (DOS) and Distributed Denial-of-Service (DDOS) Attacks
The first step in the risk assessment process is to determine and prioritize the assets and their value. Every organization has limited resources, so it is important to set priorities based on the value of each asset. This involves creating an inventory of all assets and categorizing them based on their criticality. This crucial step lays the foundation for the entire risk assessment process.
Creating an asset catalog is a challenging task that requires a defined scope. It is important to strike a balance between being comprehensive and avoiding an overly broad scope. The inventory should include not only traditional assets like hardware and software but also cloud solutions such as Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS). Other assets to consider include information security policies, IT architecture, end user support staff, technical and physical checklists, and critical data.
Once the assets have been identified and prioritized, the next step is to assess vulnerabilities and cyber threats. This step involves looking at potential threats from a broad perspective and not overlooking anything. It is important to consider not only cyber attacks, but also human error, system failures, natural disasters, unauthorized access, and misuse of authorization. By identifying these threats, organizations can build an inventory of potential vulnerabilities.
Finally, the risk assessment stage involves evaluating the likelihood and severity of the identified events. Different organizations and methodologies may have different levels of assessment, but a common practice involves assessing risks on a scale of low, medium, high, very high, and extremely high. This evaluation helps organizations prioritize the risks and develop action plans to mitigate them effectively.
In conclusion, controlling cyber risks and fraud requires a comprehensive risk assessment process. As technology continues to evolve and new threats emerge, organizations must stay vigilant in protecting their assets and data. By conducting regular cyber security risk assessments, organizations can identify and prioritize potential vulnerabilities, and take the necessary steps to mitigate risks. Utilizing a systematic methodology, organizations can strengthen their cyber security measures and protect themselves from financial and reputational damages. Risk assessment is not an option, but a necessity in today’s cyber world.