What is Digital Risk?
Digital risk refers to the negative, sometimes unknown, outcomes that stem from adopting new digital technologies. The explosion of digital technology is fueled by its powerful advantages: customer experience, increased connectivity, decreased costs, and agility. Digitization has emerged as the most effective enabler for creating a competitive advantage in the “speed to market” strategy. But despite the great opportunities that digitization has given rise to, they often harbor serious digital risks.
Digital Risk Management
As digital transformation establishes a foothold in the corporate world, digital risk management is emerging as an essential component in developing a sustainable method to control and manage digital assets. Digital risk management is the implementation of a governing process that identifies and mitigates digital risks while ensuring that adopted technologies are resilient and productive.
Proactive digital asset risk management does not inhibit performance. On the contrary, digital risk management solutions capitalize on facing digital risks head-on to build stronger resilience.
Types of digital risks
Digital risk management encompasses the many types of digital risks. For example:
- Remote work risk
Constantly shifting, the remote workforce has become the new status quo. Additionally, due to talent shortages and inflation, more companies are turning to the gig economy. The gig economy refers to a system in which short-term workers and independent contractors fill in-demand positions. Organizations need to ensure that security and protection are not compromised as they move out of brick and mortar institutions to borderless global networks. The areas that present the highest risk in remote locations and the gig economy are:
Cyber security digital risk management is a moving target that changes from day to day. New attack vectors, zero days, and other types of threats are constantly discovered. This is why it is necessary to have solid digital risk management tools in place, which are built on a risk framework that adapts to the changing environment and address the strongest risk factors in your system.
- Cloud Technology Security
Establishing policies for cloud configuration, cloud risk assessment, implementing compliance controls, and creating a RACI model to clarify who is responsible for which security controls are critical to protect and control your infrastructure in today’s complex ecosystem.
- Third-Party Risk
The global shift to outsourcing of services and products has resulted in a world where many companies have lost control over their supply chain ecosystem. Without adequate control, third-party risk is inevitable. Vendor risk management needs to be an integral part of internal risk and compliance programs. Clearly defined contracts, vendor risk assessment, strong authentication policies, and access controls can help fortify your system against external risks.
Start Getting Value With
Centraleyes for Free
See for yourself how the Centraleyes platform exceeds anything an old GRC
system does and eliminates the need for manual processes and spreadsheets
to give you immediate value and run a full risk assessment in less than 30 days
Navigating Digital Risk Management
There exists a multitude of modules and approaches to document risk management, but we will stick with a very well-known, easy-to-follow guideline: the ISO 31000 standard. The method is practically the same for any type of risk management and comprises the following five steps:
- Identify
The entire digital stack needs to be analyzed to assess where the risks are. This must be done in context with business goals and objectives. Critical business functions and customer trust and satisfaction must be weighed against digital threats that are associated with these operations.
- Analyze risk likelihood and impact
Calculate the likelihood of a given risk occurring, and estimate the impact of the risk materialization. Specify risk tolerance levels and determine which risks are acceptable and endurable.
- Prioritize based on business objectives
Company resources are limited. Insignificant risks will likely be pushed to the back burner. Resources and funding will be allocated to the risks that have the highest potential for negative impact. The resources required to treat the risk should be proportionate to the assets being protected.
- Treat Risks
Using a framework, develop a risk management plan based on industry guidelines, as well as risks that align with your business goals. Digital risk management software helps you gain full visibility into digital performance and automates the process of risk mitigation and response. It is important to test the effectiveness of the management plan to ensure it is capable of achieving the desired results.
- Monitor risk management results
Continuously assess the management process and modify it as new risks and requirements develop. Mitigation never stops. Risks can evolve rapidly, and investor preferences can change. The evolving nature of the cyber threat landscape underscores the importance of integrating services that scan for new threats.
How Centraleyes Empowers Security Teams
Centraleyes combines real-time monitoring with internal, third- and fourth-party risk assessments. With our completely integrated risk management platform, it’s easy to prioritize risks and visually understand their impact.
At Centraleyes, we want to keep your security team focused on the risks that really matter to your business. With our expertise and cutting edge technology, you can comfortably leave the complexities to our platform, and keep things safe and simple for you and your team.
Get a free risk assessment today.
Start Getting Value With
Centraleyes for Free
See for yourself how the Centraleyes platform exceeds anything an old GRC
system does and eliminates the need for manual processes and spreadsheets
to give you immediate value and run a full risk assessment in less than 30 days
