Cyber risk management: What it is and why it's important

Companies still encounter risks, even with strong cybersecurity measures implemented. Think about it: an employee might introduce an unapproved device or some software becomes outdated without anyone noticing.

These are exploitable opportunities for threat actors, and with 26,447 cybersecurity vulnerabilities reported in 2023 alone, the cause for concern is valid.

Typically, organizations concentrate on the "boom"—the immediate detection of malicious activity as it unfolds—or the "right of boom," the phase spent responding to and recovering from an attack. While these are critical components of a cybersecurity strategy, they represent only part of the overall picture.

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What’s equally important, but often overlooked, is the "left of boom." This is where proactive cybersecurity risk management comes into play.

What is cybersecurity risk management?

Cybersecurity risk management is all about spotting potential threats and vulnerabilities, figuring out how likely they are to happen and what impact they could have, and then putting strategies in place to minimize those risks before they can do any harm.

There are several reasons that an organization might want to focus or prioritize its risk management efforts, including:

• Preventing incidents: By identifying and addressing potential vulnerabilities and threats early, cybersecurity risk management seeks to prevent security incidents and breaches before they occur.
• Minimizing impact: When incidents happen, effective risk management helps reduce their impact by implementing controls and measures that limit damage and facilitate a quicker recovery.
• Ensuring compliance: Risk management helps organizations comply with regulatory requirements and industry standards related to cybersecurity, thus avoiding legal and financial penalties.
• Protecting assets: Safeguarding valuable data, intellectual property, and critical infrastructure from theft, damage, or unauthorized access is a primary goal, ensuring that these assets are secure and operational.
• Maintaining trust: By effectively managing cybersecurity risks, organizations can build and maintain trust with customers, partners, and stakeholders, demonstrating their commitment to protecting sensitive information and ensuring business continuity.

But at the end of the day, cybersecurity risk management helps organizations build a robust defense, ensuring they are well-prepared to handle emerging threats and protect their critical assets.

What kinds of risks can be managed?

The cybersecurity world often spotlights the dramatic threats—ransomware, double extortion, the stuff of headlines. However, tackling those "mundane" vulnerabilities is typically more important in effectively strengthening your defense.

So, let’s get to it. Here are the risks found in most organizations:

Unpatched software

Unpatched software, which lacks the latest security updates, poses significant risks including exploitable vulnerabilities that attackers can use to gain unauthorized access or cause disruptions.

Each unpatched flaw increases the system’s attack surface, making it more vulnerable to cybercriminals.

Vulnerable operating systems and browsers

Vulnerable operating systems and browsers are significant security risks because cybercriminals can exploit them to compromise systems.

These vulnerabilities can allow attackers to gain unauthorized access, execute malicious code, or disrupt operations.

Exposed RDP

Exposed Remote Desktop Protocol (RDP) is a significant security risk because it allows remote access to a system over the internet.

When RDP is exposed without adequate security measures, attackers can exploit this exposure to gain unauthorized access to systems, potentially leading to data breaches, system compromises, or other malicious activities.

End-of-life software

End-of-life (EOL) software is a major security risk because it no longer receives updates or support from its vendor.

This lack of updates means that any security vulnerabilities discovered after the software reaches EOL will remain unpatched, exposing systems to potential attacks.

Outdated protocols and encryption technology

Outdated protocols and encryption technologies pose significant security risks because they are vulnerable to known exploits and attacks.

Older protocols and encryption methods may become easier for cybercriminals to compromise as they often lack the advanced security features and fixes provided by modern alternatives, making them less effective at protecting sensitive information.

Why cybersecurity risk management is a challenge

One of the central challenges in cybersecurity risk management is that achieving zero risk is impossible. This is because risks are inherent to any system, and there are several reasons why complete elimination of risk is unachievable:

• Evolving threat landscape: Cyber threats are constantly changing. New vulnerabilities and attack methods emerge continuously, often faster than defenses can be developed or updated. This dynamic nature means that no matter how robust your security measures are, there will always be new risks to address.
• Complexity of systems: Modern IT environments are complex and interconnected. They include various components such as hardware, software, and network systems, each with potential vulnerabilities. This complexity makes it challenging to identify and mitigate every possible risk.

Then there’s the human factor as well. Mistakes such as misconfiguring systems, using weak passwords, or falling for phishing scams can introduce risks that are difficult (if not impossible) to fully eliminate. People are inherently unpredictable, adding an element of uncertainty to cybersecurity risk management.

The goal can't be to eliminate all risk but to understand your risk tolerance and align with that.

Managing risk as a smaller business

As a cybersecurity company, we understand that security responsibilities are often time-consuming and difficult: patching, vulnerability assessments, penetration tests, configuring security products and firewalls, and going through almost endless system logs leaves little time to calculate risk.

This is especially true for smaller businesses that often have limited resources.

In fact, Electric surveyed senior business executives at U.S. organizations with under 500 employees to understand their cybersecurity maturity and assess their experiences with cyberattacks.

The researchers found that "limited cybersecurity resources are a leading risk factor in small businesses becoming a target, so it is concerning that just one-third have access to dedicated cybersecurity specialists. Outsourcing to an external security company is a popular choice as these providers have a deep bench of diverse talent or access to third-party specialists."

Relying on a cybersecurity partner

Investing in technology that provides complete visibility into an IT environment is the first step to achieving effective cybersecurity risk management. Without full visibility—meaning endpoint, network, and cloud accounts, as well as external environments and the dark web—you are not privy to all exposures potentially putting you at risk of attack.

Choosing a solution that automatically prioritizes risk for you, based on your unique environment and the severity and likelihood of them being exploited, can alleviate the burden on your team. It clarifies where your immediate focus is required and where your effort will make the greatest impact. This creates a kind of “risk management roadmap”, that ensures you're using your time as effectively as possible. 

Lastly, recognize that no organization can eliminate all cyber risks. So, while considering a cybersecurity solution, know that it’s just as important to be prepared for potential attacks as it is to prevent them proactively.

If you want to learn more about the four phases of cybersecurity risk management and how to overcome the challenges many businesses face with continuously identifying, prioritizing, and reducing their risks, download a copy of our brand new risk management guide.