Cyber risk management

  1- What is a cyber risk?  

Individuals and organizations – private companies, administrations, associations – are exposed to the risk of cyberattacks: this is commonly referred to as cyber risks.

The nature of these risks differs from one organization to another, from one sector of activity to another, depending on their specificities and the motivations of the attackers. These risks also vary in terms of severity if they were to materialize. Like what:

• A computer attack on a city's traffic light management system could severely disrupt road traffic.
• The visible disfigurement of the internal site of a municipality would, by comparison, have less serious consequences.

  2-  How to deal with cyber risks?  

For an organization, dealing with cyber risks consists of anticipating the risks likely to weigh on it in order to choose:

• the risks against which it wishes to protect itself by identifying the security measures to be implemented to reduce its vulnerabilities and thus reduce the likelihood of these risks materialising;
• the risks that the organization is willing to take are the "residual" risks.

The way the U.S. The Information Systems Security Association (ISSA) has developed to identify and manage all risks is called the Risk Management Framework (RMF) This framework is a framework for managing information security risks.

Here are the basic steps for RMF:

1. Classification of information systems: This section requires the identification of information systems requiring protection and assigning a level of protection to each system based on the potential impact of the contract
2. Identify security measures: Once the system is classified, RMF motivates organizations to select appropriate security measures to mitigate the identified risks. These use cases can be technical, managerial, or operational.
3. Identify safety measures: RMF provides a list of safety measures that can be used to mitigate risks. Organizations can choose the most appropriate controls for their specific needs.
4. Implement security policies: Once policies are selected, they must be implemented and documented.
5. Monitor security controls: RMF requires organizations to regularly assess the effectiveness of their security measures. This can be done in a variety of ways, including vulnerability assessments, penetration testing, and compliance audits.
6. Authorize the information system: If the security measures are deemed effective, the information system can be authorized to operate.
7. Maintaining security systems: RMF organizations are required to continuously monitor their security systems to ensure their continued effectiveness. This includes identifying and responding to new threats and vulnerabilities. 

RMF is a comprehensive and systematic approach to risk management that can help organizations identify and mitigate overall risk. Steps outli following.

  3- Fictional example of risk analysis in the context of a small luxury hotel  

Situation: A small, luxury family-owned hotel in a beach town is looking to expand its services to include a spa. Risk assessments are desired to identify potential risks and vulnerabilities before capital investments are made.

Risk Assessment Components:

1. Property Introduction:

• Tangible assets: building, furniture, appliances, inventory (e.g., toiletries, linens);
• Intangible assets: reputation, customer information, intellectual property (e.g., unique spa treatments);

2. Identify threats:

• Natural Hazards: Hurricanes, floods, earthquakes.
• Human-induced threats: theft, vandalism, cyber attacks, professional misconduct.
• Operational threats: equipment malfunctions, supply chain disruptions.

3. Look at things as simple as:

• Building safety: Poor areas accessible, poorly maintained.
• Fire safety: Inadequate fire alarms, sprinklers and evacuation plans.
• Data Security: Lack of cyber security measures, poor IT infrastructure.
• Staff training: Inadequate training on safety procedures, customer service.
• Supply chain risks: Reliance on unreliable suppliers.

4. Analyze the possibilities and impact:

Threat	Measure	Influence
Theft	High.	Loss of property, loss of income.
Cyber attacks	Approach.	Data breach, defamation.
Natural disasters	Through.	Destruction of property, destruction of business.
Professional Misconduct.	Approach	Loss of money, damage to reputation

5. Risk Calculation:

• Risk = Probability x Impact
• Prioritize risks based on calculated values.

          - High-risk threats: cyber attacks, theft, professional misconduct.
          - Moderate risk: natural disasters, supply chain disruptions.

6. To develop risk mitigation strategies:

• Security measures: Install security cameras, secure access, conduct regular security audits.
• Emergency preparedness: Develop an evacuation plan, conduct a fire drill, stock the area with emergency supplies.
• Cybersecurity policy: Implement strong passwords, firewalls, and antivirus software, and train employees on cybersecurity best practices.
• Employee Training: Provide regular training on safety procedures, customer service and company procedures.
• Supply chain management: Diversify supply chain, establish contracts with performance commitments.

7. Research and Analysis:

• Regularly assess the effectiveness of risk mitigation strategies.
• Update the risk assessment as necessary to reflect environmental or operational changes.

Example of a risk reduction plan:

• Threats: Cyber ​​attacks
• Mitigation measures: Implement robust cybersecurity policies, conduct regular vulnerability assessments, and provide ongoing cybersecurity training for employees.

By following these steps and implementing effective mitigation strategies, a luxury hotel can significantly reduce the potential risk and ensure the safety and security of its operations .

  Conclusion: Cyber ​​risk management  

Cyber ​​risk management:

 Is a key part of today's business. It’s about identifying, measuring and mitigating potential risks to an organisation’s digital assets and information. By effectively managing cyber risks, organizations can protect their critical data, maintain business growth, and protect their reputations.

Key outcomes of cyber risk management:

Proactive approach: Managing cyber risk requires a proactive approach that includes continuous monitoring and adaptation to evolving threats.

Risk assessment: Identifying and assessing potential risks is essential for developing effective mitigation strategies.

Mitigation strategies: Implementing technological, operational and operational measures can help reduce cyber risks.

Employee training: Educating employees on cyber threats and best practices is essential to deal with fragile human resources.

Incident response planning: Developing a comprehensive incident response plan can help organizations respond more effectively to cyberattacks.

Continuous Improvement: Cyber ​​risk management is an ongoing process that requires constant evaluation and revision.

By prioritizing cyber risk management, organizations can achieve a stronger security posture in the face of growing cyber threats and protect their valuable assets.