Evaluating the Organization's Current IT Risk Management Framework (Part Two)

When it comes to assessing IT risk and making smart decisions, a clear picture of the current risk posture is required, so that stakeholders can make informed choices. In this second part of our series on IT risk balancing, we present some further points to ponder.

The evaluation of the current IT risk management framework should begin by identifying and analyzing the current risks associated with the organization’s IT systems. This assessment should consider both internal and external threats that could put the system at risk, as well as any historical data or trends that may indicate potential future risks. Once these risks have been identified and analyzed, the organization should then determine an appropriate risk management strategy. This strategy should include areas such as IT policy and governance, personnel training and education, security controls, threat mitigation techniques and incident response plans. The evaluation should also consider whether the existing measures are adequate for addressing current risks or if additional steps need to be taken to ensure that all organizational assets are protected.

Sometimes (usually) an expert is brought in to review the current scenario. An IT risk consultant's main responsibility is to help businesses understand and mitigate the risks associated with their IT infrastructure and technology assets. This involves identifying potential vulnerabilities, assessing risks, developing risk management plans, and designing effective security controls to minimize the risk exposure. At CTS Services, we guide our clients in establishing and improving security posture, optimizing security practices, and minimizing downtime through the use of technology tools and best practices.

Some specific areas that we can advise on as an IT risk consultant, usually your Managed Services Provider, include:

1. IT Risk Assessment: We can execute sufficient analysis of your organization’s technology assets to recognize risks, identify vulnerabilities, and conduct a quantitative or qualitative risk assessment.
2. Security Audit: We can provide comprehensive analysis and audit of the organization's security and network infrastructure, covering all potential risks, threats, and vulnerabilities.
3. Security Awareness Training: As part of risk management, our aim is to improve employee awareness of IT threats, vulnerabilities, and attack vectors with regular and on-going training sessions.
4. Risk Management Plan: Develop an IT risk management plan specific to the organization, identifying key risks with recommendations to avoid, mitigate, transfer or accept them.
5. Security Controls: We can help design and implement security controls within an organization's IT infrastructure, including advanced firewalls, endpoint protection, and data loss prevention tools.
6. Incident Response Plan: Develop an Incident Response Plan to enable an organization to respond to any IT-related security incidents and reduce mitigation downtime.

A Comprehensive List of Risk Assessment Stakeholders

While we certainly advise the CEO, CFO and CIO work hand-in-glove in balancing risks, there are many other stakeholders who made need a voice in the decision-making process, at a staff level perhaps. Here is a list of stakeholders related to IT risk management:

• CEO: The CEO is responsible for overseeing the entire organization and ensuring that IT risk management aligns with the overarching company strategy and objectives.
• CIO: The Chief Information Officer is accountable for the day-to-day management of IT operations and ensuring the IT risk management program is implemented across the organization.
• CISO: The Chief Information Security Officer is responsible for overseeing the implementation of cybersecurity practices and policies and ensuring that the organization is appropriately protected against IT risk.
• IT Operations Manager: The IT Operations Manager is responsible for ensuring that all internal IT systems and infrastructure remain online, secure, and are compliant with regulatory and industry standards.
• Security Officers: Physical and Systems Security Officers play a crucial role by implementing effective security measures, managing compliance activities, and monitoring ongoing vulnerabilities across the organization.
• Risk Management Team: The risk management team is responsible for developing the organization's risk management strategy and monitoring risk levels on an ongoing basis.
• Compliance Manager: The Compliance Manager is responsible for ensuring that IT risk management frameworks align with industry and regulatory compliance obligations.
• End-users: End-users should be trained on identifying and responding to potential IT security issues and play a vital role in identifying and reporting potential security issues that may arise.
• Vendors / Third Parties: Vendors and third-party providers with access to the organization's data must undergo validation checks to ensure they comply with the company's IT security policies and protocols to reduce risk exposure.
• Board of Directors: The Board of Directors must receive regular reports on IT risk management activities, ensuring necessary budget allocations and support are given to IT risk management activities.

Here are seven IT risk assessment questions that CFOs, CEOs, and CIOs should be asking when it comes to managing IT risks to their business:

1. What are the most critical IT assets that we need to protect and what risks are associated with them?
2. How do we identify and prioritize the IT risks that pose the most significant threats to our business operations?
3. Do we have adequate security measures in place to protect against cyber threats such as malware, phishing attacks, or ransomware?
4. How do we ensure that our employees are aware of IT risks and have been adequately trained to identify and respond to them?
5. How do we ensure that third-party vendors, contractors and partners with access to our networks are complying with our IT security policies and procedures?
6. How do we ensure that our IT risk management program is compliant with applicable laws, regulations, and industry standards?
7. How do we continuously monitor and assess our IT risk profile to identify new risks and vulnerabilities as they emerge?

Developing a Sound IT Risk Assessment Plan

The key is understanding the risks a business faces, generally, and those that are most prevalent within their company, including:

1. Cyber threats such as malware, phishing attacks and computer viruses pose a serious risk to any organization. CFOs must be vigilant in assessing their risk exposure, developing strategies to protect against malicious attacks, and regularly monitoring security performance.
2. The loss or theft of confidential data can have dire consequences for an organization’s reputation, financial standing and customer trust. CFOs should ensure that all data is securely stored and that access is strictly controlled.
3. Regulatory compliance issues are increasingly complex and require organizations to stay up-to-date with the latest requirements. A formal risk assessment process helps CFOs identify areas of non-compliance and create action plans to address them.
4. Weak authentication methods for user accounts leave businesses vulnerable to unauthorized access or data manipulation by malicious actors. CFOs must ensure that only trusted users can access sensitive systems or data with strong authentication protocols in place.
5. An inadequate disaster recovery plan could mean long periods of downtime or lost work due to system failures or disruptions. A thorough risk assessment will help CFOs develop strategies to minimize possible impacts on operations and services if disaster strikes.
6. Uncontrolled access to sensitive systems and data presents many risks, from hacking attempts to unintentional errors caused by untrained personnel making changes they don't understand or have authorization for. As part of their assessment, CFOs should ensure these systems are adequately protected with appropriate access controls in place.
7. Downtime due to system failures or disruptions can lead to severe financial losses as well as customer dissatisfaction if services are unavailable when needed most. To avoid this scenario, CFOs should always include adequate contingencies in their risk management plan, including strategies for preventing disruption before it happens and responding appropriately when it does occur.
8. Unauthorized access to networks or other resources can lead to unauthorized activity on the corporate network, resulting in costly damages for the company in terms of both financial losses and reputational damage if the breach goes public without proper remediation steps taken beforehand.

Conclusion

We hope this two-part blog series helps you to prioritize your IT and business risk posture. As a CFO, CEO or CIO it is essential to develop and maintain an effective IT risk management program to protect your organization’s information assets as well as your overall business continuity.

By asking key questions about cyber threats, data security, compliance issues and more, these leaders can ensure that their business is adequately protected from potential risks. Implementing strong authentication protocols and disaster recovery plans as well as controlling access to sensitive systems are also critical steps for mitigating any financial or reputational damage caused by IT-related incidents. It’s time for organizations of all sizes to take proactive measures when it comes to safeguarding their technology infrastructure - don't wait until it's too late!
We are here to help you minimize risks and stay in IT compliance, as your business may require. If you would like to get a clear picture of your IT risks, the risk gap, and your biggest vulnerabilities, then take the next step and request a phone consultation to learn more about our process.

Call CTS now, before it’s too late, to create a comprehensive security evaluation and solution that specifically addresses your company needs. You can reach us at 508-528-7720 or send an email to mcarlow@ctsservices.com to schedule a time to meet – at your office via Zoom, or on the phone.

This is the second installment of a two-part series. Read Part One here.