Meeting the challenge of continuously mitigating digital risk
In our series of blog posts, Addressing the Challenges of Third-Party Digital Risk Management Conundrums, this week we address the issue of Addressing the Challenges of Continuously Mitigating Digital Risk. “Statement” of previous blog posts in this series. Primarily addressing the growing importance of managing and tracking the evolution of digital risk, and ideas on how organizations can begin to position themselves when it comes to mitigating the highly complex nature of digital risk. and provide insight.
A starting point for addressing third-party digital risk includes an analysis of your existing digital risk process. This can lead to significant process improvements, enhanced mitigation, and enhanced protection. As a direct result, the types of risks that may be accepted or not reflected in the company’s internal risk appetite and tolerance, and the types of parallel risks posed by the supply chain, are undermined by internal preparedness. , prevention, and mitigation may not work well together to protect their impact on overall business performance. The need for newly developed processes therefore includes identifying specific strategic and operational digital risks and KPIs to ensure efficient KPIs and scorecard controls are directly linked to performance management implementation. KRIs, and key business objectives should be aligned.
Additionally, external digital risk management tools enhance protection and provide a consolidated, real-time view of digital risk exposure. Specifically, our customized digital risk advisory and integration services also help automate end-to-end processes for information gathering, real-time monitoring, digital risk compliance and control assessment, and risk mitigation.
Therefore, the business importance of achieving a sound digital risk process implementation rests on the aforementioned incumbent risk process analysis, resulting in implementing a digital risk management transformation primarily based on: This allows the wider organization to be collectively more conscientious and prepared.
- Create a qualitative and quantified overview of the organization’s strategic assets
- Identify digital risks associated with strategic assets and their third-party dependencies and interfaces
- Establish internal digital risk tolerance and acceptance criteria
- Establishment of digital risk assessment method
- Establish an internal security monitoring process that fully considers third-party interfaces
- Establishment of dedicated steering mechanisms, including mandatory escalation guidelines and governance rules, that provide the right foundation and focus for proactive digital risk management
- Executives articulate third-party digital risk management as a formal standalone or operational KPI, cascading implementation to appropriate levels in the wider organization.
- Systematically include and incorporate digital risk into your organization’s annual goal-setting exercise
- Digital risk assurance through external certifications (e.g. ISO27001), certifications, audits (e.g. SOC 2 report), security testing, etc.