How Important Is Cyber Risk Management?

To survive the digital world full of threats, your organization needs to do cyber risk management. So, what is it and why is it worth investing in?

Cyber Risk Management Explained

Effects of Cybercrime on a Business

The lack of cyber risk management can leave you saddled with financial costs, a smeared reputation, and legal problems. A data breach can lead to a loss of corporate data and intellectual property, a halt in business operations, and costly recovery. These economic costs may bring down your business. It is a risk you can mitigate with improved cybersecurity risk management. Organizations that suffered from a cyberattack can lose their customers’ trust, suffer from poor press, and lose existing and prospective customers to the competition. Who would trust you to keep their information if you cannot stop a cyberattack? It is why investing in cyber risk management is an effective proactive move.

Why You Need Cyber Risk Management?

The world has become more reliant on technology. It makes cybercriminals more innovative in finding ways to attack organizations. One way they do so is by stealing and selling data, stealing identities, and compromising sensitive information. These data breaches have brought down companies. It further emphasizes the importance of cyber risk management. Here are the reasons why you should pay attention to your cyber risk management:

Mitigating risks

Managing your cyber risks effectively means identifying threats to your organization. The earlier the detection, the earlier you can put up defenses. This proactive measure reduces the threats from cyber attackers.

Reducing costs

According to IBM, it costs an organization an average of $3.86 million. The average cost per stolen or lost data in a data leak is $150. Falling victim to a cyber attack is indeed costly.

Increased revenue

Data breaches due to the lack of cyber risk management can make you incur losses, as mentioned above. DDoS attacks and the like can bring down companies and halt website traffic. If your customers are unable to access your site, they can’t browse your products, let alone buy from you. Lost sales lead to lost revenue. If you can mitigate your risks with better management, you can protect your revenue. And it’s the revenue that you can use to invest in company resources. Among such resources are better programs, more favorable employee compensation packages, and more.

Improved reputation

Your failure to protect your customers’ confidential information in a data breach could mean losing your customers’ trust. You might lose your credibility and gain notoriety in the media for not prioritizing information security. But if you have effective cyber risk management, you can actively protect sensitive company and customer data. It will boost your reputation as a trusted organization and earn you loyal customers.

Competitive edge

Cyber security can do more than protect the data you’ve stored and collected by doing business. It also helps your employees collaborate better without worrying about causing a data leak. It assures your customers that they can trust you with their personal data. A good cyber risk management strategy is an asset in itself.

Better employee engagement

Employees who are confident that their personal information is safe trust and engage with their employers better. This engagement can increase their productivity, positivity, and performance.

Improved IT support

A cyber risk management plan that works means having a protocol on paper to follow. It propels the concerned teams to work with clear tasks and goals in mind. It could translate to less time wasted and less stress because the IT team does not have to resolve one crisis after another.

Reduced downtime

Successful cyber attacks can shut you down for hours, days, or months. It could happen whether you got hit by a malware attack or a ransomware attack. But if you can manage your online risks better, you can reduce downtime. It can prevent financial and economical losses and the loss of your customers’ faith in you. Improve your reputation as a trusted company and see your bottom line rise as well. Make it possible with our team of experienced cyber security risk management providers. We provide comprehensive services including detecting threats, identifying suspicious files, and recommending the right security tools. Are you willing to discuss your new cyber security plan? Contact Comodo today!