Most people think of cyber risk as potential harm from a company’s IT and communications systems. This narrow view is because businesses report data infringements and cyberattacks due to failures in an organization’s information technology systems more frequently.
However, the term cyber risk goes beyond this. A cyber breach can lead to business disruption, reputational damage, intellectual property theft, and productivity losses. All these count as serious cyber risks. These risks can jeopardize the organization’s operating ability, affecting overall business continuity.
Therefore, businesses must take a broader approach to cyber risk management. The approach should focus on gaining comprehensive enterprise-wide visibility into an organization’s overall cyber risk posture with a real-time view of cyber risks including those arising from third parties. Risk quantification, prioritization and communication abilities that relay key insights to the Board are important in a holistic risk management approach. However, this is not easy.
Many businesses have recognized the importance of managing cyber risk and have already moved it up the priority…
