Fewer trends have impacted the world of enterprise risk management like digital transformation. As organizations rapidly adopted new tools and tech to optimize operations and unlock competitive advantages, entrepreneurial cyber criminals were quietly developing their own methods to exploit this new technology for social and financial gain.
It wasn’t until the 1990s that organizations began to realize all the same tech and tools that helped them become more efficient also exposed them to a new business threat – cyber risk. Technology innovations quickly outpaced organizations’ abilities to secure them long before cyber threats made their first appearance on the risk register. And while all of this may seem like old news, cyber risk remains one of the greatest threats facing organizations today.
Is Cyber Risk the New Enterprise Risk?
At LogicGate, we define cyber risk as the probability of exposure or loss following a cybersecurity incident. A quick review of the past 30 years of tech change makes it easy to understand why the once narrowly-defined domain of cyber risk has eclipsed nearly every other enterprise risk domain in both scope and significance. You cannot address this by adding five Greens, four Yellows, and six Reds to generate a loss magnitude. Executives and board members will never buy into that math.
Every new tech innovation introduces new vulnerabilities and threats, meaning your enterprise’s risk surface and related exposure is – and will remain – fluid. From sensitive information in the cloud and networked devices to shared code libraries and HVAC systems,