IT Risk Management identifies, measures, and mitigates information technology-related risks to protect an organisation from IT-related threats.
These risks include external threats such as cyber-attacks, data breaches, system failures, and regulatory compliance issues. It also includes internal risks such as poor IT architecture design or improper use of IT systems.
The importance of IT risk management for company growth must be considered. Failing to identify and address these threats can lead to significant financial losses, reputational damage, loss of customer trust, decreased market share and competitive advantage.
Implementing a comprehensive IT risk management strategy can help ensure a secure environment that supports their operations while enabling business growth and innovation.
Common IT Risks That Plague Companies All Over The World
Here are some common cybersecurity threats plaguing Australia and global companies worldwide, making it difficult to function smoothly.
- Cybersecurity threats are malicious cyber attacks aimed at accessing, corrupting or stealing IT systems or data. Examples of cybersecurity threats include malware, ransomware, phishing and DDoS attacks.
- Data Breaches: In 2020, the cost of a data breach in Australia increased by 9.8% yearly, averaging $3.35 million per breach. While this is significantly lower than the global average of $5.39 million (approximately US$ 3.86 million), it is still a substantial financial blow for Australian businesses.
Data breaches occur when unauthorised individuals access sensitive data stored on IT systems. Data breaches can be caused by vulnerable IT infrastructure, weak authentication methods such as default passwords, or malicious actors exploiting system vulnerabilities.
- System failures: This is when infotech systems malfunction due to bugs in the software code, hardware problems, power outages or other issues. System failures can cause significant operational disruption and financial losses if addressed slowly.
- Regulatory compliance issues: All systems must comply with applicable regulations, such as data privacy laws or industry-specific IT standards. Failure to comply with these regulations can result in fines and other penalties.
- Poor architecture design: IT systems must be designed with scalability, security and performance. Poor IT architecture design can lead to system outages, decreased performance, and increased cyberattack vulnerability.
- Improper use of IT systems: IT systems should only be used for the intended purpose by authorised personnel. The unauthorised access or misuse of IT systems can lead to data breaches or other system vulnerabilities that can have serious consequences.
Ultimately, these IT risks must be identified and addressed to ensure a secure environment that supports business.
Importance of Professional IT Risk Management Services For All Companies
An IT risk management company can help organisations identify the above mentioned risks, develop mitigation strategies, and implement preventive measures. Infotech risk management companies have the experience, expertise and resources to provide an effective plan tailored to the organisation’s specific needs.
In addition, risk management companies can help organisations adhere to regulations and industry standards and keep up with technological changes.
By taking advantage of the services offered by IT risk management companies, organisations can ensure their IT systems are secure and compliant while also enabling business growth and innovation.
What Steps Do Risk Management Companies Take for IT Security?
Here are some ways IT risk management companies help organisations counter cyber security threats and attacks.
- Perform a Risk Assessment: They perform IT risk assessments to identify potential IT risks and develop mitigation strategies.
- Setting Up One Centralised System: To streamline your IT risk management, it’s essential to establish a centralised system. By centralising libraries and registers for IT risks, controls, activities, and policies, you can stay organised and prepared for any necessary action. Setting up calendars for testing and reviews helps keep you on track.
Furthermore, dynamically linking other datasets, controls, and risks can provide real-time data to support informed decision-making.
- Implement Security Controls: professional risk management companies implement appropriate security controls such as firewalls, antivirus software, encryption, access control systems and intrusion detection systems.
- Monitor IT Systems: To effectively manage your IT security risks, you must clearly understand your vulnerabilities and quickly identify critical issues.
This involves analysing your assets, assessing their risks, and managing your IT risk controls and assurance processes.
Additionally, monitoring your IT security activities and incidents can help you stay on top of any potential threats and address them proactively.
- Effective and Transparent Communication: To ensure quick and accurate responses to IT security risks, it’s essential to have user-centric interfaces, powerful visualisations, and comprehensive reports.
You can promote seamless communication and response times by engaging staff through user-centric dashboards and optimising productivity with automated workflow alerts and reminders.
Furthermore, creating custom reports in PDF, Excel, and PPT formats and presenting clear visualisations and consolidated statements at the click of a button can provide you with the necessary insights to make informed decisions and take appropriate action.
In Conclusion
By conducting a thorough IT risk assessment and implementing appropriate controls, organisations can protect their IT systems from external and internal threats while staying compliant with regulations.
Companies must take proactive steps towards securing their IT infrastructure to stay competitive in today’s marketplace. With the right strategy and resources, an organisation can effectively manage IT risks and achieve long-term.
