Business Functions Support Cyber Risk Management Strategy
A comprehensive cyber risk management strategy is crucial for financial institutions to protect their mission-critical business functions and financial sector from cyber threats. This article will explore the importance of inventorying business assets, tracking connections among assets, implementing controls to address inherent cyber risks, managing external dependencies, responding effectively to incidents, and outsourcing arrangements.
Inventory of Business Assets
To effectively manage cyber risk, institutions must first identify and prioritize their business assets on an enterprise-wide basis. This includes all systems, networks, applications, and data that support critical business functions. A comprehensive inventory of these assets is essential for understanding the potential impact of a cyber incident and identifying areas where controls can be implemented to mitigate risks.
Tracking Connections Among Assets
In addition to identifying individual assets, institutions must also track connections among assets throughout their life cycles. This includes monitoring relationships between assets, as well as the flow of data between them. By analyzing these connections, institutions can identify potential vulnerabilities and implement controls to prevent unauthorized access or data breaches.
Controls for Addressing Inherent Cyber Risks
Once business assets have been identified and tracked, institutions must implement controls to address inherent cyber risks. This includes:
- Implementing security measures such as firewalls, intrusion detection systems, and encryption protocols.
- Prioritizing the implementation of controls based on the criticality of each asset to the business functions they support.
External Dependency Management
In today’s interconnected world, institutions are increasingly reliant on external dependencies and interconnection risks. To manage these risks effectively, institutions must have an explicit external dependency management strategy that is integrated into their overall strategic and cyber risk management plan. This includes:
- Identifying and assessing cyber risks associated with external dependencies.
- Monitoring in real-time all external connections that support the institution’s cyber risk management strategy.
- Tracking connections among external dependencies, organizational assets, and cyber risks throughout their lifespans.
Incident Response and Cyber Resilience
In the event of a cyber incident, institutions must be prepared to respond quickly and effectively to minimize the impact on business operations. This includes:
- Establishing processes for secure offline storage of critical records.
- Conducting testing that addresses potential disruptions.
- Having in place plans for rapid recovery and restoration.
Outsourcing and Third-Party Risk Management
As institutions increasingly rely on outsourcing, cloud providers, and other services to reduce operation costs and improve efficiency, they must also be aware of the cyber risks associated with these arrangements. To manage these risks effectively, institutions should have in place:
- Adequate governance frameworks for outsourcing agreements.
- Due diligence on prospective service providers.
- Documented outsourcing agreements.
- Adequate monitoring of service delivery.
Conclusion
In conclusion, a robust cyber risk management strategy requires institutions to identify and prioritize business functions that support their mission and financial sector. By inventorying business assets, tracking connections among assets, implementing controls to address inherent cyber risks, managing external dependencies, responding effectively to incidents, and outsourcing arrangements, institutions can minimize the impact of cyber threats and ensure the continuity of their operations.