ABC Bank recently faced a cyber-attack where hackers attempted to steal customer data. This raised concerns about their cybersecurity measures.…

There are 3 Stage of cyber risk : Stage 1 - Assessing the cyber risk: No organisation is completely immune to a cyber risk. Different clients will have different levels of risks, even with the same industry. Every organisation should consider at least the common threats- Ransomware disabling their organisation (including their plants and manufacturing facilities).Common criminals using email phishing and hacks for fraud and theft.Insiders committing malicious activities or accidental activities resulting in unintended discourse of information theft and frauds. Stage 2 - Impact of cyber risk: Cyber-attack can impact one, two or more types of risks. The impact of the attack would vary from organisation to organisation and most importantly from attack to attack. Some of the indicative areas can be – Regulatory costs.Business interruptions causing an operational challenge for an organisation.Data loss, reputational loss and litigation.Ransomware - more common these days where entire systems are encrypted.Intellectual property theft which may not only take the competitive advantage, but we may also result in any impairment/impediment charge because of the loss of IP.Incident response cost which could be for investigations & remediations.Breach of Privacy, if personal data of a consumer is hacked it could have a significant impact on the organisation.Fines and penalties. Stage 3 - Managing cyber risk: A strategic approach to cyber risk management can help an organisation to: Gain a holistic understanding of the cyber risks, threats facing their organisation and other financial institutions.Assess existing IT and cybersecurity program and capabilities against the relevant regulatory requirements.Align cybersecurity and IT transformation initiatives with strategic objectives and critical risks.Understand accepted risks & documented compensating controls.