Economics and digital security are closer than you think

One of the modern cyber security blunders companies make is leaving the entire population within the company with zero information about this serious threat. Recent events indicates that organizations across the divide lacking programs of security awareness usually pay dearly; the cost of security incidents are four times higher than that of their rivals. Companies today are digitizing assets and expanding this resource daily, which also comes with a corporate risk of its own. Cyber-security today is at the top of the most critical issues to be addressed by corporate boards.

Most cyber systems today were designed devoid of any security measures incorporated and as mobile devices and web connections continue to explode, they’re very insecure than ever before. Threats are not just from rival companies but from rogue governments such as North Korea’s alleged cyber threat to Sony that jeopardized the release of the political satire comedy The Interview.

As it currently stands, cyber-security economics favours cyber criminals since cyber attacks are easy and cheap to pull through. The business plans of cyber attackers are also inexpensive and provide very generous profits. Defense on the other hand against these attacks also seems to be ages behind and ROI for cyber-attacks prevented or prosecuted by the law is virtually non-existent with fewer than two per cent cyber criminals prosecuted globally.

To enhance management of cyber risks, there are a number of principles corporate boards can enhance.

Cyber-security is a company-wide risk management menace

Leaving cyber-security to IT departments is one of the mistakes companies are making today. According to SolarWinds’ recent study, 91 per cent of all advanced cyber threats start with an email. As such, ensuring people within the organization are not vulnerable or understand the risk involved can help cut down on cyber risks.

Understand risks of an integrated world

Today the world is integrated, including organizations with their workforce and clientele. Organizations have to be aware that customers, suppliers and vendors can also be a weakness and exploited by cyber attackers.

Cyber-risk legal implications

Just like cyber threats the cyber security legal situation is evolving fast. No single standard really applies, particularly for companies whose business takes place in more than one region or jurisdiction. As such, tracking down the evolving regulations and laws within a particular market is very important.

Access to cyber security know-how

Since cyber-security is now very central to the decisions of virtually every business, boards lacking the know-how to evaluate the risk of cyber attacks facing them are at a loss. It’s important to recruit cyber professionals to sit in board meetings to help understand and analyze staff reports.

At the end of the day, an organization will end up with a management system for cyber risks that’s sustainable and well understood. Cyber-threats change all the time and a strong, flexible framework can help mitigate the risks involved.

Robert Cordray
Robert Cordray
Robert Cordray is a former business consultant and entrepreneur with over 20 years of experience and a wide variety of knowledge in multiple areas of the industry. He currently resides in the Southern California area and spends his time helping consumers and business owners alike try to be successful. When he’s not reading or writing, he’s most likely with his beautiful wife and three children.

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