ROI on cyber risk governance
Cyber risk governance is no longer a ‘nice to have’ - it is a business priority.
A clear cyber risk governance framework benefits a business in many ways aside from mitigating cyber risk. It also provides a strategic overview of how an organization manages security, defines risk appetite, builds accountability frameworks, and identifies those responsible for making key decisions.
With global threats on the rise, there’s never been a more important time to have this in place.
The Rise in Cyber Threats
The issue isn’t only that the amount of cyber attacks has increased, there are other factors to consider too.
Cyber threats are becoming increasingly sophisticated, and capable of fooling even the most digitally-savvy employees. Phishing scams in particular have come a long way from the traditional and obvious ‘scam’ email - malicious actors are now replicating company emails and internal communications with worrying skill.
Identity theft is a primary goal for attackers, usually through stealing legitimate credentials in order to gain access to sensitive information. This isn’t always necessarily customer or client information, employee details can be just as valuable to cyber-criminals - particularly those in the c-suite with highly prized data and connections.
In addition, cyber insurance is becoming much harder to obtain. The number of organizations unable to afford cyber insurance, ending up with insufficient coverage, or being refused a policy, has risen, due to increasing threat levels and regulatory tightening. The spiraling costs of ransomware attacks is a key factor here too.
Cyber Risk Governance Return on Investment
Cyber risk governance does require time and effort to implement and will inevitably come at a cost. However, the ROI is significant:
With a clear framework in place, there’s also clear reassurance for business executives that cyber risk is being adequately managed.
Executives will receive accurate, timely information from stakeholders, whether internal or external, to determine risk exposures.
Business strategy and operations come into alignment. The strategy sets the plan for the business, the risk appetite, and what the business will tolerate in terms of risk exposure. Operations will fulfill the strategy and objectives of the business, and as such, will have to consider cyber risk.
Active risk management and governance along with well-prepared plans in the event of a cyber incident can protect an organization's brand from reputational failure.
Having a clear governance framework in place will help develop a ‘cyber-aware’ culture within the company at all levels, ensuring that education on cyber threats and best practices is a team effort with continual learning, and collaboration across the business.
Financial loss will be minimized, as risk exposure is reduced, particularly for ransomware attacks.
Ultimately, the upfront and ongoing costs of governance are far lower than the cost of dealing with a major cyber incident arising from lack of controls, poor incident preparation, and no cyber insurance. The ROI jumps even higher when you consider the devastation that irreparable reputational damage can bring to an organization, whether large or small.
At KV impact, we can help you implement a cyber secure culture within your business - making sure your executives have the required knowledge to empower them to make informed risk-based decisions. Get in touch here for a chat.
