Risk management is the process of identifying, assessing and controlling threats to an organization’s capital and earnings. These threats, or risks, could stem from a wide variety of sources, including, but not limited to:
- Financial uncertainty
- Legal liabilities
- Strategic management errors
- Natural disasters
These threats have become a top priority for digitized companies. As a result, a need for a risk management plan has increased, as well as companies’ processes for identifying and controlling threats to its digital assets, including proprietary corporate data, customer’s information, and intellectual property.
Every business and organization faces the risk of unexpected, harmful events that can cost the company money or potentially even cause the company to permanently close its doors. Risk management allows organizations to attempt to prepare for the unexpected by minimizing risks and extra costs before they happen. Recognizing this shift, it’s important to understand risk management, what it means for the future, and how Sanity Solutions can help.
Why is risk management important?
Simply put, the more data you have and the more digitized you are, the more vulnerable you are to risk and cybersecurity threats. Here’s the proof: 43% of cyberattacks targets small businesses. And since the COVID-19 pandemic began, there’s been a 300% increase in cybercrimes as criminals try to attack work-from-home employees who have weaker networks and infrastructure.
If those numbers aren’t staggering enough, the price tag might be. The average cost of a data breach so far in 2020 is $3.86 million. At this rate, spending on cybercrimes is expected to hit $6 trillion globally by next year.
Bottom line? Businesses must have a risk management plan so they can:
- Maintain a safe and secure work environment for all employees and customers
- Provide protection from events that are detrimental to the company, and minimize the impact of potential breaches that can harm your business severely
- Increase the stability of business operations while also decreasing legal liability
- Protect all involved parties and assets from potential damage of sorts
- Maintain your obligation to protect trade secrets and data (both internal data, and customer data)
How do you create a risk management plan?
To create a risk management plan, work with security experts who know how to prevent risks, not just react to them after they’ve happened. At Sanity Solutions, we offer enterprise-level solutions and services to implement a plan unique to you and your business. We go beyond just written documents and actually create a robust plan to secure and protect your data — taking as many preventative measures possible to minimize risk to your business and bottom line.
What about the future of risk management?
In an ever-increasing digitized world, things are always evolving and changing. Risk management is no different. Currently, it’s evolving into what’s called enterprise risk management. But what’s the difference?
As we mentioned before, your business needs a plan that’s proactive, not reactive. Enterprise risk management is just that. It’s more robust, and typically involves elements like:
Our advice? It might be time to re-evaluate your current risk management plan to ensure your time, money, and efforts are spent on preventing threats instead of fixing them after the damage is done.
Minimize your risks with Sanity Solutions
Protecting data and thwarting cybersecurity threats is no longer an option for businesses; it’s a necessity. It’s clear that cybercriminals aren’t slowing down any time soon and are taking advantage of the pandemic to ramp up their efforts. That means it’s crucial to develop and implement a risk management methodology tailored to your needs sooner rather than later. When you work with Sanity Solutions, we act as an extension of your team. We have the tools, expertise, and strategies to help your business and data remain secure while minimizing risk to your business. Ready to build your plan? Contact us to get started today.