Senior management and corporate boards often do not concern themselves about planning for risk management. They care more about the ‘business’ aspect of the company, focusing mostly on strategy and success of operations. This has to change, but why?
In today’s world, there are a lot of threats that can pose a very serious harm to every business. Cyber-intruders and hackers can wreak havoc on an organization’s system if they can find a way to access it. Having measures in place to protect one’s business from such attacks is one of the smartest actions every business leader can make.
Adding Cyber Security is a Smart Move
Gone are the days when corporate leaders can simply call upon the services of some information technology specialists and get cyber security risk management off their to-do list. These days, information governance is one of the biggest chunks comprising an effective corporate risk management program. Just a single breach in data management can mean extensive damage for an organization, more so for web-based businesses.
Every company should have a cyber security system that features an incident response plan to make sure that possible damage is kept to a minimum should a data breach occur. Not only that, but companies should be willing and able to devote attention and resources for the assessment of data vulnerabilities and having enough safeguards in place to protect against intruders such as hackers.
Minimizing Cyber Risks
Investors should make cyber risk management one of their top priorities. This means that the corporate board has to take a more active role in this area and start asking the tough questions. Questions such as whether the organization has an incident response plan for ensuring minimal impact in the event of a security breach, if there are people who have been assigned specific functions when an incident response plan needs to be implemented, and if the company has a way to ensure that everything will be properly executed and monitored in case of a security lapse – all needs to be addressed.
With everything that needs to be done to make sure that your data is safe, it is easy to be overwhelmed. You have to keep in mind though that the key to protecting your organization from cyber risks really just rests on having a sound cyber security system in place.
Think about it, crisis management will only be needed if a breach does occur. This means that instead of channeling your resources to crisis management, the smarter course of action would be to invest in how you can protect your organization from cyber intrusion. If there is no damage, there would be nothing to clean up, much like the saying that an ounce of prevention is better than a pound of cure.
A tip for minimizing cyber risks would be to assess whether you have any vendor-created cyber security risks. This is not to say that internal risks do not exist, but rather a reminder to take a long hard look at every small detail.
Although the top tier management can rely on information technology specialists to run the cyber risk management program, it is best if the senior managers and board members would brush up on the possible technology issues that may arise, more so if they have key roles to perform in the implementation of the company’s incident response plan. For best risk management when a cyber attack does happen, who to report to and who will make decisions have to clear.
Once the cyber risk management plan has been laid out, having a cyber-fire-drill of sorts would help your organization pin point strategies that work and those that do not, thereby helping you fine tune your plan for best results.