Table of Contents Hide
- What You Should Know About Enterprise Risk Management (ERM)
- Why Is Enterprise Risk Management Important?
- 5 Important Things To Know About Enterprise Risk Management & Cybersecurity
- Get Started With Cybersecurity Solutions!
No brand is immune from cyber-attacks. Big names that have fallen victim to cyber-attacks include Yahoo, Alibaba, Facebook, Royal Dutch Shell, and Sony Pictures. Interestingly, they include some of the world’s leading tech companies, highlighting the gravity of the threat.
Inarguably, enterprise risk management and cybersecurity are intricately interrelated, and it is important to take measures to protect your corporate website and other digital platforms and assets. Here is a brief guide on how enterprise risk management and cybersecurity work together.
What You Should Know About Enterprise Risk Management (ERM)
Enterprise risk management (ERM) involves identifying, analyzing, and preparing for all potential threats that may pose a risk to the organization. It also usually involves identifying and taking advantage of opportunities that may enhance the organization’s goals and objectives.
ERM is an integral aspect of a company’s day-to-day operation. It should never be viewed as a project but rather as an ongoing process that will never end as long as there are threats posing risks to the company. Overall, good ERM helps improve operation efficiency, ensuring everything goes smoothly. IT is an integral part of many organizations’ operations, making cybersecurity an integral component of enterprise risk management.
Why Is Enterprise Risk Management Important?
ERM should be an integral component of your company’s everyday operations for many reasons. The most notable reasons for integrating ERM into your operations include the following:
Creation Of A Risk-Focused Culture
There will always be threats posing risks to your organization, and they will grow bigger and multiply as your company grows and expands its operations. Ignoring threats is counterproductive, as the dangers posed by threats will catch you off-guard. A risk-focused culture is prudent and essential, and integrating ERM can help you prevent or minimize the effects of your company’s risks.
Efficient Use Of The Company’s Resources
Resources misuse and wastage are usually some of the most notable internal threats posing a risk to an organization. Unfortunately, monitoring, measuring, and managing the use of resources is difficult without an ERM solution. Integrating ERM gives you access to an organized framework and the tools you need to mitigate this risk by measuring and allocating enough resources, thereby reducing wastage.
Compliance With Legal, Regulatory & Reporting Requirements
Bleaching the rules, laws, and regulations set by regulatory authorities can make you vulnerable to fines, prosecution, and other legal consequences. Unfortunately, keeping up with these laws often proves daunting because regulators usually update them regularly. Fortunately, an ERM solution features a customized framework designed to help you comply with your particular industry’s regulations based on your company’s operations.
5 Important Things To Know About Enterprise Risk Management & Cybersecurity
Many organizations rely on IT in most of their everyday operations. This has made the threat posed by cyber-attacks worse because they usually cripple many of the company’s operations, including those not related to IT. The integration of IT into everyday operations is also the main reason why enterprise risk management and cybersecurity are intertwined.
Here is an overview of five important things to know about integrating ERM and cybersecurity:
1. Risk Examination At The Organization Level
It is important to examine all threats and risks (including cybersecurity risks) at the organizational level. The National Institute of Standards and Technology (NIST) even published new ERM and cybersecurity guidelines to help companies do this back in 2020. Getting the senior management to acknowledge the risks and adopt the integrated ERM and cybersecurity plan is especially important.
2. Building A Culture Of Security
It would be best if everyone in the organization was aware of the underlying threats posing risks to your organization. This entails educating everyone, especially employees, about the nature of cyber-attacks and other threats and equipping them with the knowledge and tools to prevent and mitigate attacks.
3. Incidence Response Planning
Unfortunately, not all threats are avoidable, especially cyber-attacks. Some cyber-attacks can leave lingering effects that can leave your business reeling for days. This is why incidence response planning is crucial – it helps you prepare for any seen and unforeseen threats, thus helping mitigate the effects.
4. Limiting Threats
It is important to limit your organization’s potential attack surface, which is one of the principles of ERM. Limiting cyber-attack threats usually involves implementing robust cybersecurity solutions such as firewalls and anti-malware software.
5. Standardized Risk Registers
ERM risk registers should be independent of cybersecurity risk registers. Instead, both registers should be integrated, giving the oversight team a comprehensive view of the underlying threats and risks across the ERM and cybersecurity spheres.
Get Started With Cybersecurity Solutions!
The integral relationship between enterprise risk management and cybersecurity is undeniable. Integrating cybersecurity and ERM is crucial to your business’s overall performance. It is advisable to solicit professional help for an efficient integrated ERM and cybersecurity solution.