The Best of Both Worlds: Why Modern Risk Management Demands a Hybrid Approach

An ounce of prevention is worth a pound of cure. 

Decision-makers would do well to remember this. Because as 2022 begins, the world faces a staggeringly complex, volatile risk landscape.

The ransomware market is experiencing explosive growth. Attacks are becoming more sophisticated, their perpetrators more persistent. And all the while, businesses must contend with a massive threat surface, protecting internal resources, remote workers, and an ever-expanding supply chain. 

If you’re to protect your data and keep compliant with industry regulations, it’s no longer enough to be secure. You must also be resilient — fully aware of the threats you face, and with plans to mitigate and respond to each one. In order to reach that point, you must first be capable of managing risk. 

With that in mind, it should come as no great surprise that the market for governance, risk, and compliance (GRC) has undergone significant growth over the past several years. Demand for GRC solutions of all kinds has reached an all-time high. Yet this growth fails to address one of the core problems with modern GRC: Complexity. 

Why Modern Risk Management Demands a Hybrid Approach

Fragmentation: The Enemy of Being Prepared

There are many different kinds of risk one’s business may face, and different solutions for each type of risk. A business will likely need to deploy separate GRC software for different use cases whilst also deploying solutions for business continuity, incident response plans and more. Before long, you have IT departments juggling multiple disjointed, disconnected tools.  

Likely as not, each of these tools will also draw from different datasets, drawing threat intelligence from multiple disparate sources. In addition to being frustrating from a usability standpoint, this level of fragmentation inevitably results in the creation of data silos. And that, in turn, can create blind spots that ultimately defeat the purpose of risk management. 

Fragmentation also further exacerbates another glaring issue, one which can be seen quite prominently in the area of vendor risk management. Assessing risk for even a single business tends to be a painstaking, time-consuming process. Carrying out such assessments at scale — if, for instance, your business is evaluating multiple prospective vendors — it becomes functionally impossible- to say nothing of ongoing monitoring. 

And this is something your business needs to do. 

Consider, for instance, that last year, supply chain attacks quadrupled in frequency, the majority perpetrated by established, sophisticated threat actors. The average cost of such an attack is among the highest of any cyber incident as well, coming in at approximately $1.4 million. And that’s not even accounting for the reputational and legal consequences of poor vendor risk management. 

First, it can exclude you from crucial partnerships and contracts. Many businesses won’t even entertain the notion of working with a company that lacks verifiable, effective processes for managing vendor risk. Moreover, neither regulatory bodies nor clients care whether your business was breached directly or through its supply chain — what matters to them is that through inaction, sensitive data was compromised. 

In an effort to make their risk management workload somewhat more palatable, some businesses and vendors rely exclusively on a generalized scorecard approach. Unfortunately, said scorecards are frequently built from inaccurate, incomplete, or purely qualitative data. As such, they provide very little value in the long-term.

What can be done about these issues, though? 

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

Hybrid Risk Management: The Best of All Worlds

As ecosystems grow more expansive and complex, the old ways of managing risk become increasingly untenable and even with the introduction of automation- it isn’t enough. In order to reduce unevenly managed risk, eliminate siloed data, and provide greater overall visibility, businesses must embrace a hybrid approach to risk management. 

But what do we mean by a Hybrid Approach? 

  • A single solution for both internal and third-party risk management. 
  • Comprehensive threat intelligence pulled from all available sources.
  • Bring monitoring, analysis and remediation together onto a single platform. 
  • Combine qualitative and quantitative risk analysis techniques for greatly improved accuracy. 
  • Multiple options for assessing risk, including questionnaires, real-time monitoring, and historical threat data. 

In short, hybrid risk management represents the best of all worlds, consolidating all your GRC needs onto a single platform. And it’s one of the foundational principles on which we developed Centraleyes. 

Embrace the Hybrid Approach with Centraleyes

We’ve long recognized that risk management is broken — that even most SaaS vendors do not provide clients with everything they need for resilience. 

That’s why we designed Centraleyes to be as intuitive as possible. All aspects of your business’s risk management can be accessed via a single dashboard, which provides real-time visibility into the status of your entire ecosystem, and that of your vendors and supply chain partners, thanks to the solution’s support for multi-tenancy. 

And because risk management is no longer the sole domain of IT, Centraleyes is capable of generating cutting-edge visual reports. These reports do more than simply allow you to keep key stakeholders in the loop. They ensure that those stakeholders actually understand your business’s risk posture.

At the end of the day, complexity and fragmentation represent some of the greatest barriers your business will face with regards to risk management and resilience. Centraleyes easily addresses both issues through intuitive design, cutting-edge automation, and an enterprise-level featureset. We firmly believe that our platform’s hybrid approach represents the future of risk management. 

And once you’ve seen what Centraleyes can do, so will you.

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