Why Cyber Risk Management Matters

Cybercrime is predicted to cost the world $10.5 trillion annually by 2025, up from $3 trillion in 2015.

As businesses increasingly rely on technology for everything from daily operations to mission-critical processes, their IT systems have become larger and more complex. The explosion of cloud services, the rise of remote work, and the growing reliance on third-party IT service providers have all expanded the average company’s network. With this expansion, however, comes a greater vulnerability — a larger attack surface.

Companies have integrated an increasing number of devices, applications, and third-party providers into their networks. For example:

• 79% of organizations use third-party vendors for critical operations, increasing the complexity of managing security across multiple touchpoints.
• 68% of organizations have adopted some form of cloud computing, expanding both opportunities and security risks.

As IT systems grow, so does their exposure to potential cyber threats. In fact, according to Verizon’s 2023 Data Breach Investigations Report, 4 out of 5 data breaches involved external actors, with third-party vendors being a major entry point.

The Role of Cyber Risk Management

This is where cyber risk management comes in. By adopting comprehensive risk management strategies, companies can identify, assess, and mitigate the evolving threats they face as their digital environments grow. Effective cyber risk management initiatives help companies:

• Map and manage their shifting attack surfaces, continuously monitoring for vulnerabilities as networks expand.
• Improve their security posture, reducing the likelihood of successful attacks.
• Develop a proactive defense strategy by anticipating potential risks tied to new technologies, third-party vendors, and expanded cloud services.

For example, 75% of organizations that implemented cyber risk management frameworks saw a 25% reduction in security incidents within the first year of implementation.

The shift toward cloud services, remote work, and increased reliance on third-party providers has made cybersecurity more complex. As the attack surface grows, so do the risks. Cyber risk management is no longer optional — it’s a critical strategy for safeguarding an organization’s digital assets, protecting its reputation, and ensuring business continuity. With cyber threats evolving rapidly, companies must invest in effective risk management practices to stay ahead of potential attacks.