Identifying & Mitigating Cyber Security Risks

More than one in four businesses experienced a cyber security breach in the last 12 months, according to the latest figures from the Department for Science, Innovation and Technology (DIST). Government research also highlights the increasingly sophisticated methods being used, including AI impersonation in phishing attacks.

With that in mind, it’s important now, more than ever, to understand where cyber security risks for your business might come from. We explore how to identify and mitigate cyber security risks for your business.

How do cyber risks develop?

Human error accounts for 95% of all cyber breaches, with 8% of employees accounting for 80% of incidents. Often, these risks develop for three key reasons:

Ineffective policies and processes

Even if your business has a cyber security policy, how often is it reviewed? Cyber risks evolve rapidly as technology becomes increasingly sophisticated, and policies and procedures should reflect this change. Similarly, outdated procedures or ambiguous processes for dealing with breaches can lead to a delayed response, resulting in increased financial and reputational damage.

Internal weaknesses

Ultimately, it’s systems, processes or people that enable cyber attacks to happen, for example:

Human error – this includes inadvertently downloading malware, clicking malicious links, or falling for phishing scams.
Inadequately trained employees – if staff don’t know what might pose a security risk, they won’t be able to identify them.
Inadequate protocols – including weak passwords and insecure data storage.
Disgruntled employees – frustrated or resentful current or ex-employees may leak sensitive information.
Outdated software – unpatched weaknesses or failure to update systems can make it easier for outsiders to hack in and access sensitive data.

External threats

Identifying internal weaknesses is just one aspect of mitigating risk, but understanding where external threats may originate can be more challenging. One key area that’s important to focus on is the risk of using third parties within your business’ ecosystem.

This potential hazard was recently highlighted by the M&S cyber attack, which resulted in customer data being stolen, online orders being put on hold, and disruption to its supply chain. It’s estimated the incident will cost the retailer around £300m. M&S CEO Stuart Machin has admitted that the malicious software that caused the attack was carried out through a third-party that had access to their systems.

While it’s almost impossible for most businesses to avoid using third-party providers, it’s crucial to remember the risks that are posed by outsourcing.

How can businesses mitigate their cyber security risks?

Cyber security risk management is an ongoing process, but for too many businesses, it can be an afterthought that’s seen as a hindrance to getting on with day-to-day activities. However, identifying and plugging the gaps sooner rather than later can save your organisation considerable stress, as well as financial and reputational damage.

If your business doesn’t have its own cyber security expert or resource, you can hire an experienced professional to carry out a security audit of your systems. They’ll be able to outline weaknesses, identify specific risks, and offer solutions.

Other actions you can take to minimise cyber security breaches include:

Educating employees about cyber risks and scams, such as phishing, AI impersonation, and the dangers of downloading content from unfamiliar sources.
Implementing technical solutions, such as software updates, antivirus protection, robust firewalls, and using multi-factor authentication.
Putting together an incident response plan so staff know what to do and who to contact if a breach does happen.
Having a business continuity plan prepared for the worst-case scenario.
Investing in software to automatically monitor and identify threat patterns.
Regularly monitor your website, network infrastructure, and stress-test your cyber defences to ensure they’re working effectively to protect you.
Completing the government-backed Cyber Essentials certification scheme, which shows you how to put key security controls in place; businesses that complete the scheme are 92% less likely to make a cyber insurance claim.
Reviewing third-party contractors for potential risks and understanding the level of security they have (for example, checking if they hold Cyber Essentials certification or their own cyber insurance).
As part of a cyber insurance policy, many insurers will proactively scan your and your contractors/suppliers’ systems for vulnerabilities, helping you to identify and mitigate security risks.

The importance of mitigating risk for cyber insurance

Identifying risks can feel overwhelming, but you can simplify the process by tackling issues with the most serious consequences first. Taking steps to mitigate the risk of cyber security breaches isn’t just good practice; it can also play a significant part in securing cyber insurance.

Many providers will want to understand the steps you’ve taken to secure your data and systems before issuing a policy. Your approach and attitude to cyber security can also impact the cost of premiums.

The ultimate line of defence?

Good cyber security policies and procedures go a long way to mitigating risk, but cyber insurance is also an important business tool, especially as technology (and criminals) become more sophisticated.

Policies provide critical protection for any business that stores, processes, or manages data, covering you for regulatory, financial, and reputational losses following a cyber attack, and restoring your business to the position it was in before. If you’d like to find out more about cyber insurance and how it can benefit your business, speak to our expert team on 01603 218000.

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Identifying and mitigating cyber security risks in your business

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