Advancing Cyber Risk Management – From Security To Resilience
Since 2017, risk experts have consistently ranked large-scale cyber attacks and data fraud among the top five mostly likely risks around the world. Despite growing anxieties about cyber threats, cyber resilience strategies and investments continue to lag. Globally, the time taken to discover a data breach has considerably lowered since 2017, but organizations in the Asia-Pacific region took four months longer than the global median. Internet users are growing 10 times faster than global population, exponentially increasing the surface area of attack. For example, in 2018, the total cost of cyber crimes grew by a third compared to 2016, to $600 billion, but investments in cyber security only increased 10 percent over the same period.
Rapidly evolving threats and infiltration techniques have rendered traditional cyber defense strategies insufficient and ineffective. The emerging threat vectors and speed of change amplified by the digital transformation cannot be addressed by traditional means. Globally, laws are also changing to keep pace as cybercrime evolves, knowing no boundaries. Therefore, organizations must be nimble and agile to keep pace with policy changes, especially when expanding across different jurisdictions.
“In our current state of cyber security, security breaches are inevitable. This is an important fact, so I am intentionally repeating it. In our current state of cyber security, security breaches are inevitable.”
– Kevin Mandia, FireEye CEO
This report highlights three strategic imperatives to strengthen cyber resilience:
- Understand (know your threats): Identify organization and industry-specific cyber threats and regulations calls for robust strategies that include cross-disciplinary considerations.
- Measure (know yourself): Quantify the potential financial impact of cyber exposures to compare against the level of risk appetite acceptable to the board. This will determine the amount of investment necessary to mitigate and transfer any residual risk.
- Manage (know what you can do): Proactively manage cyber risks by having clear action plans based on your capabilities and capacities to protect against cyber criminals.
It is inefficient and impractical to expect organizations to be ahead of every threat, but organizations should at least be on par with the evolution of cyber threats while ensuring compliance with changing laws and regulations. While cyber attacks are inevitable, proper preparation is the essential element that sets resilient organizations apart from the rest in managing risk, minimizing damage, and recovering quickly from any incidents