Part 6 — Reconcile rapid digital transformation with security and compliance

Treat and monitor your risks

Gross risk acceptance is not always the only and best risk treatment option. In general, there are four primary ways to handle risk in the professional world, irrespective of the industry. They include:

  1. Reduce or mitigate risk
  2. Transfer risk
  3. Accept risk

(a) How to Avoid Risk

In many cases, the strategy of protecting oneself from any perceived danger by avoiding risk is outdated. However, in some situations, the call for an avoidance approach to risk management is indeed necessary. If the activity has a high likelihood of occurring, and it will also cause significant financial harm, it’s better to avoid it entirely.

(b) How to Reduce Risk

Implicitly, reducing risks requires a good understanding of the activities space that has the potential of reducing the likelihood of occurring and positively affecting the underlying financial impact. Let’s illustrate risk-reducing activities through a simple example of technology-savvy fintechs that grow from a technological backbone. Clearly, one of the most significant dangers to these companies are due to cybercriminals.

  1. Supporting security awareness
  2. Correcting security flaws

© How to Transfer Risk

In particular, in case a financially devastating activity occurs, it is probably the best option to share or even transfer the risk. Handling the risk all alone could lead to significant setbacks,if not a complete shutdown of the business. Most of the time, risks in this category are highly unlikely to happen. However, the possibility is still there, and transferring the risk poses the best option.

(d) How to Accept Risk

It’s not always that businesses can avoid, reduce, or transfer risk. Sometimes, what remains is to accept the risk. In fact, if accepting the risk is more profitable than any other option, then it’s the optimal strategy. After all, every industry has unavoidable risks that come with the territory. While accepting risk is difficult, after all, some risk is necessary to do business in the modern world.

Experience in IT-Risk Treatment Matters

As far as the treatment of risks are concerned, SRC consulting brings the relevant experience to understand your risk appetite, and propose individually optimized best-practice solutions for each risk detected. The support by SRC consulting includes the technical and/or organizational implementation of the measures to your satisfaction.

Conclusion

Combining the six steps:

  1. Determine the criticality of assets requiring protection
  2. Target-performance comparison of security measures
  3. Include security deficiencies in your risk inventory
  4. Analyze and prioritize your risks
  5. Treat and monitor your risks

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SRC - Security, Risk, Compliance

SRC - Security, Risk, Compliance

Beratung, um Security, Risk und Compliance bei Ihnen als Enabler für das Business zu etablieren.