Why Cybersecurity Is a Risk-Management Problem
Enterprise businesses face a world of constantly changing and growing cybersecurity threats today. But many still make the mistake of viewing cybersecurity as merely an information technology problem. Organizations need to shift their thinking to a strategic risk-management model for cybersecurity. Here’s why risk mitigation is vital in ensuring the success of your enterprise’s cybersecurity strategy.
1. Curb the Cost of Cybersecurity Insurance
While it’s still a relatively new product, cybersecurity insurance has been growing at between 25 and 50 percent CAGR each year, and policy premiums are already approaching $3 billion per year. By 2025, policy premiums are projected to reach $20 billion. IT executives and business leaders need to treat cybersecurity as a serious threat and adopt a posture that suits the business’s objectives and risk tolerance.
2. Protect Against Litigation Suits
There was a time when corporations were viewed as the victims of a major cybersecurity data breach. But now, organizations and their board of directors are responsible for protecting the business against cyber threats. And there are consequences if a data breach occurs. Generally, a data breach that includes the loss of other people’s data involves weathering lawsuits and compensating customers whose information was compromised. In the case of some high-profile data breaches, members of the board of directors were even personally sued.
3. Bolster Your Cybersecurity Framework
If consumer data is lost in a data breach, you can expect calls from the SEC. It’s essential to have your cybersecurity framework, policies, procedures and all aspects of your legal strategy in place before a breach happens. An insufficient cybersecurity framework can be a liability in court. To combat this liability danger, consider adopting the National Institute of Standards and Technology cybersecurity framework, which offers a universal basis for generating responsible governance. But take a look at your entire program and lay it up against the SEC requirements for added protection.
4. Improve Board of Directors Relations
Approaching cybersecurity with a risk-management mind-set helps the board meet its obligation to ensure that compliance standards are fully met as well as implement the appropriate risk tolerance to achieve the corporate objectives. Exploring security measures in terms of governance — as opposed to technologies — helps CSOs and other executives secure funding and effectively communicate with the board about how to bring the risk to an acceptable level.
See how CenturyLink Managed Security Services can help your organization stay protected.