Integrate Cyber Risk Quantification with Enterprise Risk Management for 360° coverage

Ambulances get diverted on their way to hospitals, putting valuable lives at stake. Clinical operations face complete disruption as the prominent network of 140 hospitals and 40 senior living facilities struggle under a deadly ransomware attack. This might sound like a sci-fi flick, but it is not. Leading US healthcare provider Ascension faced such a crisis in May 2024, as a deadly ransomware group put the network in its crosshairs.

Ascension’s plight is not isolated, since healthcare organizations face unprecedented levels of business disruptions due to cyberattacks. This trend became more prevalent post the COVID-19 pandemic, especially with the entry of state sponsored attacks and organized cybercriminal groups. But how do you measure and analyze the ways in which such risks impact your business?

Cyber Risk Quantification’s (CRQ) integration with Enterprise Risk Management (ERM) is a direct offshoot of these developments. It is driven by the clear understanding that cyber risk is a prominent enterprise risk in the modern world, especially in healthcare organizations.

Cyber risk quantification methodologies and tools are essential for protecting sensitive data end-to-end. In conjunction with ERM, these interventions enable healthcare businesses to meet data privacy regulations and evaluate potential financial losses from breaches. Similarly, verticals such as retail, pharmaceutical, and IT companies benefit from the integration of cyber risk quantification strategies with ERM to fortify their organizational security postures.

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The CRQ-ERM equation

Today, leading hospital boards incorporate cybersecurity as part of the overall risk management scope. This strategic weightage offers multiple advantages as illustrated in Figure 1: The Cyber Risk Quantification and ERM connection.

Enhanced decision-making capabilities are a natural outcome of integrating cyber risk quantification with ERM. The financial value attached to a certain risk helps even non-technical stakeholders like physicians or senior administrators come to terms with a cybersecurity incident. This ensures suitable resource allocations, investments, and prioritization.

Regulatory compliance is another front where integration of CRQ with ERM delivers rich dividends. As regulators increasingly crack down on businesses with stricter risk management mandates, cyber risk quantification provides a structured mechanism to fulfil these requirements. At the same time, the availability of an assessment and measurement framework streamlines governance.

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Connect the CRQ-ERM dots

Significant effort goes into proper integration of cyber risk quantification with enterprise risk management initiatives. This calls for measures right from organization-wide stakeholder involvement to the alignment of cyber risk management with the overall business.

In this context, the following five-step process is a good starting point for its CRQ-ERM integration journey.

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Step 1

Create a comprehensive risk register

Effective quantification of cyber risks calls for a comprehensive risk register. The first step is to identify all cyber assets, along with threat assessments and the corresponding impact analysis. Evaluate the associated risk probability and risk management strategies. Document all identified risks as well as regularly review and update the register to stay ahead of potential threats. The single pane of glass overview that CARM platforms like Culinda brings is ideal for such exercises. Integration of CRQ capabilities like threat intelligence, next generation risk models, and analytical capabilities help businesses to effortlessly create and continuously update a comprehensive risk register. The CARM platform seamlessly integrates with existing security tools and processes to boost overall security operations’ efficiency.

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Step 2

Attach financial values to cyber risks

It is essential to quantify cyber risks in financial terms to understand a cyber threat’s potential impact on an organization's bottom line. These practices enhance efficiency and enable the business to prioritize its mitigation efforts. Cyber risk quantification frames cyber risks in a language that resonates with financial considerations. Quantification models like Factor Analysis of Information Risk (FAIR) aid executive-level decision-making. For instance, healthcare providers can utilize the FAIR methodology to assess a ransomware attack's financial repercussions. Such tactics ensure more effective budget allocations toward cybersecurity measures that address the most financially significant risks.

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Step 3

Build risk monitoring and reporting mechanisms

Implement ongoing monitoring for cyber risks and incorporate the results into regular ERM reports. Utilize dashboards and real-time analytics that deliver current information to stakeholders. In Culinda's case, our clients leverage a continuous real-time monitoring system that tracks cyber threats. Integrating this data with the organizations' CARM platform translates to continuously updated risk assessments and swift responses to emerging threats.

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Step 4

Bank on informed employees

Regularly train employees on cyber risks to emphasize their role in minimization of these risks. Incorporate such modules into broader risk management training programs. For instance, clinics can conduct regular cybersecurity training sessions about the significance of safeguarding patient data and system integrity. Integrating these sessions into a broader risk management education program furthers cyber risk awareness into the organizational culture.

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Step 5

Leverage scenario-based planning

Adopt scenario-based planning as a proactive measure to understand cyber incidents' potential consequences and appropriate responses. It involves creating detailed scenarios to identify vulnerabilities and assess the effectiveness of mitigation strategies.

For instance, healthcare businesses can utilize scenario-based planning to improve their incident response plans. By simulating a data breach affecting patient records, the team can identify weaknesses and take proactive steps to strengthen their cybersecurity readiness.

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End to end risk protection

Technology and automated processes that align with enterprise risk management are critical to powering a holistic defense strategy. This is where Culinda's platform integrates comprehensive risk assessment, threat intelligence, advanced risk models, and analytical capabilities for a unified overview.

Culinda's seamless integration with existing security tools and processes improves security operations. It enhances data-driven decision-making and facilitates optimal resource allocation.

Culinda's comprehensive risk management platform is designed to empower the infosec team. It identifies, analyzes, scores, and secures all aspects of an organization's digital footprint. This holistic view of the organization's attack surface covers all assets, exposures, and vulnerabilities. Instant availability of such insights enables infosec teams to assess potential cyber-attack impact and prioritize remediation efforts proactively.

Secure your business with optimal CRQ and ERM integration. Contact us today to discover how CARM comprehensively protects your organization's infrastructure.