Cyber risk analysis: challenges, methods and best practices for effective governance
Between the explosion of threats and growing regulatory pressure, cybersecurity has become a major strategic issue for all organizations, regardless of size or sector of activity. And to effectively protect its assets, each company must go through an essential first key step: cyber risk analysis, which is a real mapping of cyber risks, in order to anticipate threats and prioritize security actions.
In this article, discover what cyber risk analysis is, its challenges, the steps to follow and the tools to rely on, as well as the common mistakes to avoid.
Risk analysis: definition and goals
In cybersecurity, risk analysis is a method for identifying, evaluating, and prioritizing threats to a company's information systems and critical assets.
It consists in:
- identify assets digital to protect (data, infrastructures, applications, digital identity, etc.);
- identify threats of cyber origin likely to affect these information systems or digital services;
- assess vulnerabilities that could be exploited;
- estimate impacts and probability of occurrence of each risk.
The objective of risk analysis is not to eliminate all existing risks, this would be impossible, but rather to:
- identify risks The most critical ;
- Prioritize them based on their potential impact;
- deploy, as a result, adapted security measures and proportionate in order to reduce the probability of their occurrence and their severity.
In other words, risk analysis makes it possible to invest in the right place, with the right level of effort, in order to protect the organization's strategic or sensitive digital assets.
Reminder of the most frequent cyber risks in business
Businesses are exposed to a large number of different cyberattacks.
Some of the most common include:
- Phishing (phishing) : these social engineering techniques aim to deceive users to obtain access or sensitive information (personal data, banking information, etc.). They are most often carried out by email using a trusted third party.
- Ransomware : this malicious software is designed to compromise an information system or equipment. They block access, encrypt or copy the data. The cyberattacker then demands a ransom to return this sensitive data without revealing it.
- Denial of service attacks (DDoS) : here, the objective is to saturate a server or to exploit a security vulnerability in order to make it inaccessible by causing a failure.
- Compromise by third parties: partners and service providers often represent an underestimated gateway.
These risks are constantly evolving and becoming more and more sophisticated, especially with the use of generative AI and campaign automation that makes it possible to orchestrate faster and more sophisticated attacks. This is why continuous vigilance and constant adaptation are required.
Why is risk analysis essential in business?
Risk analysis is much more than a simple compliance tool: it is both a strategic approach and a governance tool that allows companies to anticipate and better resist crises.
Dealing with the explosion of threats
Cyberattacks are multiplying and becoming more professional. Cybercriminals are now using theartificial intelligence, of automated techniques And massive campaigns to reach all types of organizations.
To defend itself effectively and anticipate threats, a company therefore needs accurate and regular risk analysis. Only one clear and up-to-date vision risks makes it possible to deploy the right measures.
Identify vulnerabilities and critical assets
An organization must be able to precisely identify its most important digital assets (strategic data, critical systems, customer information, industrial secrets...) and know where its vulnerabilities.
Risk analysis thus makes it possible to detect technical weaknesses, but also those related to user practices. In fact, according to the IBM Security Intelligence Index,Human error is responsible for 90% of cyberattacks, whether it's phishing, poor password management or the activation of viruses, etc.
Prevent security breaches
En Anticipating attack scenarios, the company is improving its resiliency and is more likely to ensure the continuity of its business. Indeed, depending on its nature, a cyberattack can cause prolonged unavailability of services, which would directly impact the organization's productivity and revenues.
Minimize financial losses
Les costs associated with a cyber attack are considerable: business interruption, ransom, regulatory sanctions, increased insurance premiums... By making it possible to identify and prioritize risks, risk analysis facilitates strategic decision making decision makers and allows them to significantly reduce these financial consequences.
Respect regulatory constraints
Some regulations require the implementation of risk management measures. Risk analysis is therefore a must for stay in compliance and avoid sanctions.
For example, at the European level, the RGPD imposes strict protection of personal data. For its part, the NIS 2 directive reinforces the security obligations of essential and important entities in the economic and administrative fabric. As for the DORA regulations, it specifically targets the digital operational resilience of the financial sector.
Earning the trust of customers and partners
Beyond the direct consequences of an attack (financial losses, cessation of activity, etc.), there are indirect costs which can be just as harmful for the company: loss of customer trust, tarnished reputation...
A company that can prove your risk control inspires more confidence and differentiates itself more easily on the market.
What are the main steps in risk analysis?
1. Identifying assets and threats
The first step is to identify:
- The assets to protect : sensitive data, critical systems, equipment, processes, processes, applications, cloud infrastructures, ERP systems...
- The most common threats that weigh on these assets: cyberattacks, data theft, human errors, malware...
Here, the objective is to draw up a clear mapping of what really matters to the organization and of the potential dangers.
2. Vulnerability Assessment
Every asset can have weak spots. This can come from a software flaw, an inadequate network configuration, or even a lack of user training. Identifying vulnerabilities is an essential step in understanding how a threatens could really come true.
Of vulnerability scanners can be used to detect technical flaws. Of internal audits and external can also be useful for verifying the compliance of systems with security standards, procedures and the proper training of employees.
3. Analysis of the impact and probability of risks
Once the assets, threats and vulnerabilities have been identified, it is necessary to measure for each:
- The probability that a risky scenario occurs;
- The potential impact on the company (financial, legal, reputational, operational).
This phase is essential for prioritize risks and know which ones to treat first.
4. Defining treatment strategies
After evaluating each risk, the company must define the strategies to adopt.
Depending on the type of risk, its probability and its potential impact, several possibilities exist:
- Preventive measures : implementation of protection measures such as software updates, technical checks, training and awareness-raising for employees, strengthening passwords, etc.
- Transfer : use of cyber insurance or outsourcing of certain functions to transfer risk to a third party.
- Acceptance : conscious choice to tolerate a risk considered minor. This strategy is often used to prioritize other, more important risks.
- Avoidance : a strategy aimed at completely avoiding the risk. This may involve deleting a process or system that is considered too risky.
This step usually results in a risk treatment plan including concrete actions, managers and deadlines.
At this stage, businesses can save valuable time, while deploying accurate analysis, using a platform like Egerie which makes it possible to automatically build a cyber road map over several years.
5. Monitoring and continuous improvement
Risk analysis should not remain static: it is part of a process of continuous monitoring. It needs to be updated:
- in the face of rapidly evolving threats,
- during any organizational change (merger, new project, cloud migration),
- to incorporate new regulatory obligations.
Egerie, with its dashboards And its specific risk scenarios, helps you to ensure a simple and dynamic monitoring of cyber risks. The platform also allows measure in real time the progress of cyber programs and to generate comprehensive reports in a few clicks to facilitate the monitoring and, if necessary, the reassessment of strategies.
What tools should I use?
Different methods and standards structure cybersecurity risk analysis. The choice depends on the sector, the maturity of the organization and its regulatory obligations.
EBIOS Risk Manager
EBIOS (Expression of Needs and Identification of Security Objectives) is a recognized French method, at the initiative of ANSSI, which helps companies to identify and understand the risks that are unique to them.
Adapted to complex environments, EBIOS offers a methodological framework to meet the various challenges associated with the increasing complexity of information systems, the multiplication of attack scenarios and the strengthening of regulatory requirements.
The EBIOS Risk Manager method is distinguished by an approach combining compliance logic and scenario analysis, which take into account the business and technical ecosystem in which the organization operates.
ISO/IEC 27005
ISO/IEC 27005 is an international standard that provides a methodological framework for the management of risks associated with information systems. It offers a structured approach to identify, assess, and manage information security risks in all types of organizations.
Concretely, the objective of this standard is to ensure the confidentiality, Theaccessibility And thedata integrity and strategic business information.
FAIR (Factor Analysis of Information Risk)
Unlike ISO/IEC 27005 or EBIOS, which are approaches based on qualitative analyses, the FAIR method is a quantitative approach. It makes it possible to estimate risks in a quantifiable manner and to translate them into financial impacts, thus facilitating dialogue with the Directorates-General and Finance.
For example, the FAIR method helps to answer the following questions: how many times is this disaster likely to occur over a given period of time? How much will it cost?
Etc.
Common mistakes to avoid
Many organizations still make mistakes that are simple to avoid and that reduce the effectiveness of their risk analysis.
For example:
- Consider risk analysis as a one-time exercise : cybersecurity is evolving rapidly. A fixed risk analysis can very quickly become obsolete.
- Do not involve the trades : limiting the approach to IT offers a partial vision of the problem, while the professions have field knowledge. They help identify critical assets and understand the operational impacts of risks.
- Underestimating the risks associated with third parties : suppliers (supply chain), partners and service providers represent a major gateway for cyberattackers. Likewise, internal threats and human errors should not be overlooked.
Egerie, your ally for accurate risk analysis
Risk analysis has therefore become an essential step for companies that want to insure their resiliency in the face of cyber threats and meet regulatory requirements.
By using CRM platforms (Governance, Risk & Compliance) suchlike Egerie, companies can transform this regulatory constraint into a governance lever and a competitive advantage.
With Egerie, you can:
- Simply map all your risks cyber, operational and strategic;
- Simulate different scenarios to anticipate impacts;
- Centralize data to easily compare and consolidate the results of each risk analysis;
- Create dynamic dashboards and reports in a few clicks to facilitate strategic decision making;
- Multiply the number of analyses carried out in a few clicks thanks to the numerous resources available on MyEgerie;
- Prioritize measures according to the severity of the risks and their real impact;
- Automatically generate an action plan over several years based on the assessment of your exposure to cyber risks;
- Continuously monitor compliance...
By relying on such tools, risk analysis becomes an asset of competitiveness And of resiliency.
Request a demo free and discover how Egerie simplifies risk analysis, from initial mapping to real-time monitoring.
Risk analysis FAQ
1. How often should a risk analysis be carried out?
Ideally, the analysis should be carried out once a year, but also after any major change (new system, merger, outsourcing, new regulations...).
2. Who should be involved in a risk analysis?
The effectiveness of a risk analysis depends on the involvement of a set of key internal actors: IT teams, the security department (CSSI), business representatives and the DPO.
3. What is the difference between risk management and risk analysis?
Risk analysis is a step in risk management. It only involves the identification, estimation and evaluation of risks, while risk management encompasses the complete cycle: analysis, treatment, follow-up and communication.
4. How to choose your risk analysis method?
The choice depends on several criteria, such as the size of the organization (a small structure may prefer a simple method such as ISO 27005, while a large company may opt for a more detailed approach such as EBIOS Risk Manager), but also on the objectives and the sector of activity. The main thing is to choose a method adapted to your challenges.
