With organizations recognizing that the maturity-based cybersecurity approach is inefficient and leading to unnecessary overspending, the next move is to move towards the more effective risk-based cybersecurity framework. However, many companies fear that the switch may cause disruption. Fortunately, the transformation doesn't have to be disruptive as long as these eight steps are taken in sequence.

Step 1: Fully integrate cybersecurity into the enterprise risk management framework

Only after the true nature of cyber risk as a business risk has been acknowledged can an organization align its efforts and be ready to implement a risk-based approach. Understanding, analyzing and categorizing cyber risks, threats, and their roots should be part of the company's framework and guiding principle and not just a general concern.

Step 2: Identify the sources of enterprise value 

Define the workflows of the highest enterprise value and at the highest risk due to potential vulnerabilities. Ask your cybersecurity team which processes they consider most valuable and most susceptible to enterprise risk.

Step 3: Define the vulnerabilities within your people, processes, and technology

Understand the vulnerabilities that may exist within your teams, infrastructure, third-party vendors, processes, applications, and technologies. By defining these vulnerabilities, you can identify the roots of the vulnerabilities and work on closing gaps and developing programs to mitigate the risks. Determine if your existing controls are enough to close gaps or if additional initiatives are needed.

Step 4: Determine threat actors and their techniques

Cybercriminals will attack you based on your specific assets; therefore, the threat actors relevant to your industry may differ from other sectors. Understand the capabilities of these cybercriminals, starting with their tactics and processes in exploiting enterprise security.

Step 5:  Categorize and address vulnerabilities

With control gaps and vulnerabilities identified and defined, your organization should be able to categorize risks based on priority – with those of highest enterprise value and risk placed at the top. Addressing the vulnerabilities will not happen overnight. Having the issue plotted out gives you the framework for control implementation, additional training, new technology requirement, application development or investment, and other actions to align cybersecurity efforts.

Step 6: Build a risk-based cybersecurity model

With the sources of enterprise value, vulnerabilities, threat actors, and cybercriminal capabilities identified, your organization can now map its enterprise-risk ecosystem. This includes taking your current vulnerabilities and control programs to optimize run and change programs. With the potential of new initiatives also comes analyzing your budget to ensure your spending is allocated strategically.

Step 7: Communicate initiatives to stakeholders

For stakeholders to react to cyber risk and evaluate risk appetite, they need to visualize how cyber threats impact enterprise value. Risk grids effectively demonstrate the potential effects leaving vulnerabilities exposed to risks can have on the company’s operations and reputation.

Step 8: Measure and monitor risks using KPIs

Measure risk-reduction efforts and the actual metrics indicating whether risks have been reduced or not. Understand the difference between measuring the performance of a program vs. the risk level of specific scenarios. Define thresholds and continue to monitor for both emerging risks and potential incidents. 

If you wish to learn more on how to set up a risk-based framework in a cost-efficient way, get in touch with specialized experts.