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Glossary
What Is Digital Risk?


WHAT IS DIGITAL RISK?

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How to Evaluate Digital Risk Solutions



TABLE OF CONTENTS

 * Types of Digital Risk
 * Digital Risk Protection
 * How to Manage Digital Risk

Digital risk broadly refers to the potential threats and vulnerabilities that
arise from using digital tools, platforms and technologies. Assessing digital
risk on the organizational level examines all of the negative consequences that
can result from digital transformation. While going digital is critical to
scaling a business, it also means relying more heavily on digital solutions.

Digital risk is an unavoidable by-product of digital transformation and new
technology, and it requires focusing on vulnerabilities that may hinder
achieving business objectives. While there are many types of digital risk, the
most critical type arises from an increased attack surface, giving
cybercriminals more entry options to target.

As the digital landscape continues to evolve, so do the challenges associated
with securing data, maintaining privacy, and ensuring system integrity. Digital
risk encompasses a wide range of concerns, from cyberthreats to data breaches,
and from regulatory non-compliance to reputational damage. Understanding and
managing digital risks is crucial for businesses and individuals alike to
safeguard assets, reputation and personal information in the digital age.




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TYPES OF DIGITAL RISK

The complexity of the digital risk landscape can be simplified by segmenting
risks into different categories. Digital risk is comprised of nine primary
categories, including:

 1. Cybersecurity risk. This refers to the potential for unauthorized access,
    disruption or malicious activities targeting digital assets, systems or
    networks. It emphasizes threats like malware, phishing and cyberattacks that
    can compromise data and infrastructure.
 2. Cloud Technology risk. Pertains to vulnerabilities associated with storing
    data and running applications on remote servers. Risks include potential
    service outages, data breaches and reduced control over proprietary data.
 3. Data Leaks risk. Involves the unintentional exposure of sensitive or
    confidential information, either internally or externally. Such leaks can
    result from weak security measures, human errors or system malfunctions.
 4. Workforce talent risk. Centers on the challenges in attracting, retaining
    and training skilled personnel in the digital domain. A lack of qualified
    professionals can lead to operational inefficiencies and increased
    vulnerabilities.
 5. Compliance risk. Relates to potential legal penalties and reputational
    damage from failing to adhere to regulatory requirements in the digital
    realm. Non-compliance can lead to fines, sanctions and loss of trust.
 6. Resilience risk. Focuses on an organization’s ability to anticipate, respond
    to, and recover from adverse cyberevents. A lack of resilience can lead to
    prolonged downtimes, operational disruptions and reputational damage.
 7. Process automation risk. Concerns about the challenges and vulnerabilities
    of automating digital processes. These risks include software bugs, system
    failures or unintended consequences of automation on business operations.
 8. Third-party risk. Relates to the potential vulnerabilities introduced by
    external partners, vendors or suppliers. If these third parties lack
    adequate security measures, they can become weak links in an organization’s
    defense chain.
 9. Data privacy risk. Involves potential threats to the privacy of individuals’
    personal data. This stems from unauthorized access, data misuse or
    non-compliance with data protection regulations.

Each category has unique characteristics and requires a different approach to
managing digital risk effectively. For example, cybersecurity risk refers to
unauthorized access to sensitive resources and data breaches. Cloud technology
risk refers to vulnerabilities affecting systems, processes and people, which
could stem from tech-related incompatibilities, errors and failures.

By understanding the different types of digital risk, organizations can identify
the most vulnerable areas of their ecosystems and support highly targeted risk
protection efforts. That way, organizations can manage digital risks more
effectively and efficiently.




DIGITAL RISK PROTECTION

Digital risk protection is a set of practices and methodologies to safeguard an
organization’s digital infrastructure against ever-increasing digital threats.
Digital risk protection solutions operate on the premise that organizations can
use cybercriminal activity to their advantage to identify attacks before they
happen.

There are several forms of digital risk protection (DRP), including:

 * Cybersecurity strategies: Cybersecurity strategies must shift to a proactive,
   people-centric approach to protection. This is key to supporting ecosystem
   expansion while mitigating risk. Mitigating cyberattack risks is a critical
   part of DRP efforts.
 * Digital footprinting: Digital footprinting involves discovering and mapping
   all digital assets exposed to potential threats. It is a critical part of
   digital risk protection and security awareness efforts.
 * Continuous monitoring: Continuous monitoring of the security state of all
   exposed assets is essential to mitigate digital risk. This includes
   monitoring for vulnerabilities, threats and attacks.
 * Threat intelligence: Threat intelligence solutions focus on improving
   security postures to help organizations withstand cyberattack attempts. They
   provide actionable insights into the latest threats and vulnerabilities.
 * Digital risk protection service: Organizations with a complex digital
   landscape will achieve greater financial efficiency by investing in a digital
   risk protection service, often called DRPS. A DRPS is a comprehensive managed
   service that typically offers a platform, system or other technology to
   spearhead cybersecurity threat prevention.
 * Multidimensional threat analysis: DRP solutions translate millions of data
   points into actionable business intelligence using multidimensional threat
   analysis, digital footprint contextualization and threat evolution tracking.
 * Sensitive data leakage monitoring: DRP solutions can monitor for sensitive
   data leakage, a valuable way for cybercriminals to exploit systems.

By implementing these forms of digital risk protection organizations can
mitigate digital risk and confidently embrace the digital transformation
necessary to scale in a fast-paced era.




HOW TO MANAGE DIGITAL RISK

Managing digital risk is a multi-faceted endeavor that requires a comprehensive
defense-in-depth approach. Here are steps organizations can take to effectively
manage their digital risks:

1. RISK ASSESSMENT

The process of risk assessment is the foundational cornerstone of digital risk
management. Every organization must begin by identifying its digital assets,
encompassing everything from data and software to hardware and intellectual
property. By leveraging various tools and assessments, they can pinpoint
potential vulnerabilities and threats to these assets. The goal is to identify
and evaluate each threat’s likelihood and potential impact.

2. DEVELOP A DIGITAL RISK FRAMEWORK

Once an organization has a clear picture of its assets and potential threats,
the next step is crafting a digital risk framework. This framework prioritizes
risks based on their potential impact and probability. Central to this framework
is determining the organization’s risk tolerance, which will guide subsequent
decisions on whether to accept, mitigate, transfer or avoid certain risks.

3. IMPLEMENT PROACTIVE MEASURES

Defending the digital frontier demands a proactive approach. This encompasses
implementing robust network defenses such as firewalls and intrusion detection
systems. Additionally, tools like antivirus software, complemented by regular
patching routines, bolster endpoint security. Of equal importance is protecting
data through encryption techniques, access controls and maintaining regular
backups of pivotal data to ensure data integrity and availability.

4. EDUCATE AND TRAIN EMPLOYEES

Employees are both an organization’s first line of defense and a potential
vulnerability. Regular security awareness training sessions empower them with
knowledge about emerging threats, especially common ones like phishing scams.
Simulated attack scenarios can be an effective way to test and reinforce this
knowledge.

5. MONITOR AND RESPOND

In the digital realm, vigilance is key. By deploying continuous monitoring
tools, such as SIEM systems organizations can actively survey for anomalies.
Paired with a robust incident response plan, they can ensure swift and decisive
action when threats emerge.

6. REGULARLY UPDATE AND PATCH

The digital landscape is ever-evolving and with new technology adoption come new
vulnerabilities. Regular software and system updates, complemented by timely
patching, safeguard against many of these emerging threats, ensuring the
organization stays one step ahead.

7. MANAGE THIRD-PARTY RISKS

Third-party vendors can often introduce unforeseen vulnerabilities. As an
integral component of Cyber Supply Chain Risk Management (C-SCRM), it’s
essential to rigorously vet these external entities for their security
protocols. Continuous oversight and monitoring of their activities and access
levels are pivotal in ensuring they don’t inadvertently become weak links.

8. PLAN FOR RESILIENCE

Unforeseen cyberevents are a reality and planning for them is not a luxury but a
necessity. Developing a disaster recovery plan and ensuring robust business
continuity practices are crucial. Regularly testing these protocols ensures that
the organization can bounce back in the face of adversity with minimal
disruption.




RELATED RESOURCES


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2023 UPDATE: THE BIGGEST & BOLDEST DATA BREACHES & INSIDER THREATS


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PROTECTING IDENTITIES: HOW ITDR COMPLEMENTS EDR AND XDR TO KEEP COMPANIES SAFER


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PROOFPOINT'S 2024 PREDICTIONS: BRACE FOR IMPACT

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