Cyber risk refers to the potential harm resulting from a breach of an organisation’s information systems caused by cyber-attacks or human error.
IT systems play a leading role in essentially every aspect of modern business. From customer data management to supply chain logistics, these technologies enable companies to operate more efficiently and effectively than ever before. However, with increased capabilities and accessibility come new threats. Each new system endpoint is a potential attack vector for threat actors, meaning that businesses must be more vigilant than ever before in protecting their digital assets from cyber-attacks.
The term ‘cyber risk’ refers to the harm represented by these cyber threats. Cyber risk can come in various forms, from financial losses to reputational damage and even legal penalties associated with failure to maintain data-security compliance. And as digital transformation continues to reshape how the world conducts business, cyber risk is increasing significantly.
Cyber risk is a critical concern that must be addressed in order to maintain operational resilience and ensure that sensitive data is kept from those who would try to abuse it. The unfortunate truth about cyber risk is that it is not a matter of if, but when a cyber-attack will occur. And the impact of such an attack can be devastating.
Unfortunately, just as there are now nearly limitless attack vectors a cybercriminal may use to gain access to sensitive data or systems, there is also an ever-increasing number of cyber risks that organisations must be aware of. These risks come in many forms, with some of the most common being:
Phishing
Phishing is a type of social engineering attack in which an attacker sends a message to an individual in an organisation, attempting to trick them into revealing their credentials or installing malware onto the system. Phishing attacks are on the rise, with attackers shifting their focus from malware attacks to using phishing to harvest people’s credentials.
Malware
Malware is a type of malicious software that is often installed onto computers through phishing emails or by clicking on malicious links. Malware can take the form of viruses, keyloggers, spyware, worms or ransomware. Malware can be used to steal sensitive information, hijack systems for nefarious purposes or hold data for ransom.
Ransomware
Ransomware is a type of malware that encrypts the files on a computer or network and demands payment in exchange for the decryption key. If the ransom is not paid, the attacker may retaliate by deleting the data or posting the organisation’s proprietary data online, causing reputational damage.
Distributed denial-of-service (DDoS) attacks
A DDoS attack is a type of cyber-attack that targets an organisation’s central server with a flood of simultaneous data requests, causing the server to crash or freeze up. The attack can be used to hold a company hostage until the attacker’s demands are met or as a distraction for other attacks.
Brute force attacks
This type of cyber risk involves automated software that repeatedly attempts to guess a password until it succeeds. This can give the attacker access to sensitive data and systems.
SQL injection
A SQL injection occurs when a cyber attacker inputs malicious code into a web form or other database entry field, causing the database to reveal sensitive information or execute unintended actions.
Social engineering attacks
Social engineering involves manipulating individuals to divulge sensitive information or perform actions that benefit the attacker. Common tactics include phishing, pretexting and baiting. Mitigation strategies include employee training and awareness, multi-factor authentication and network segmentation.
Advanced persistent threats (APTs)
APTs are long-term, targeted attacks that are designed to remain undetected for as long as possible. They often involve multiple stages and techniques and are typically carried out by skilled and well-funded attackers.
Zero-day exploits
A zero-day exploit represents a vulnerability in software that is unknown to the software vendor, making it difficult to patch.
Each of the above risks represent an external threat and may originate from a range of sources, including competitors, unfriendly nation-states, hacktivist groups, petty criminals or even bored individuals with no agenda beyond trying to break into a system. But not all threats come from outside an organisation; some are much closer to home. These internal cyber risks often take the form of insider threats.
An insider threat involves an employee, contractor or other trusted party who intentionally or unintentionally compromises the security of a system. This can be as benign as accidentally sharing an internal business document with a mistaken email address or as malicious as a disgruntled employee purposefully using their system permissions to access and steal sensitive data. Even simply clicking on the wrong hyperlink and inadvertently exposing internal systems to malware can create cyber risk for the business.
It is worth recognising that while there will always be a risk of malicious insider threats, these kinds of intentional internal threats seem to be declining. Unfortunately, as systems become more complex and employees and contractors require more system access, unintentional data compromise is becoming more prevalent. And when a single mistake can expose a business to potentially millions in damages, insider threats are one aspect of cyber risk that cannot be understated.
Although cyber risk has become ubiquitous and businesses of all kinds and in every industry and market are likely to experience a cyber-attack eventually, there are certain factors that can make an organisation appear more vulnerable and a more tempting target for malicious threat actors. Cyber criminals take many different things into account as they select their targets, including:
One common reason businesses fall victim to cyber-attacks is due to shortcomings among staff and third-party contractors. Employees can be a weak link in the business as they have access to sensitive information and may unwittingly fall prey to phishing scams and malware attacks. At the same time, partners and other third-parties may also be exposed should employees inadvertently reveal security weaknesses or areas where compliance practices are not being closely followed. Cyber criminals may exploit these vulnerabilities to gain access to the business network and steal valuable information.
The internet of things (IoT) represents an exponential increase in system access points. Each IoT device is connected to the internet, and if they are not properly secured it may take minimal effort to turn these internet-enabled devices into unprotected back doors into the company network. This makes them an attractive target for cybercriminals, who can exploit known vulnerabilities in these devices at very little risk to themselves.
Most cloud providers offer top-quality data security, creating off-site data repositories that are generally more secure than an organisation’s on-site servers. But the cloud isn’t infallible. As organisations make the switch from legacy to cloud-based computing, data may become vulnerable during the migration. And organisations should be verifying risk and compliance standards are being met through regular control testing.
To protect against the full range of cyber risks, businesses must implement robust cybersecurity measures, train employees to identify and prevent attacks, and stay up to date with the latest security technologies. But perhaps most important of all is the need for constant monitoring and total network transparency, identifying potential network threats before they can turn into real problems. ServiceNow, the leader in IT management, offers a solution.
ServiceNow’s Risk Management capabilities provide organisations with the tools to minimise cyber risk and more effectively manage their risk posture. Take advantage of powerful, real-time continuous monitoring using out-of-the-box templates, of data shared in the platform by Security Incident Response and Vulnerability Response in ServiceNow Security Operations. Apply automated capabilities to improve response times and inform risk-based decision making. Communicate and collaborate effortlessly across teams and departments through a single, centralised location. And though it all, enjoy the increased accessibility and freedom that comes from working within a trusted, cloud-based platform.
Secure your vital data and ensure that cyber risk does not become cyber reality for your business. Contact ServiceNow today, and see what top quality Risk Management can do for you.
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