New Forrester study revelation. Stay updated on the latest findings shaping the business and technology landscape. The tumultuous economy and increasingly sophisticated cyber threats are just two of the critical risks businesses face today. To mitigate these risks, business leaders need a well-planned and comprehensive risk management strategy.
But traditional approaches to risk management often fail to consider how a response to one threat might affect other areas of the company. That’s why Illumio has created a complete guide to enterprise risk management best practices.
Business continuity
Business continuity is the ability of an organization to continue operations after a disaster or disruption. It’s an essential part of any business, and a comprehensive plan can help protect your company from costly downtime and data loss.
A business continuity plan is more thorough than a disaster recovery plan and includes contingencies for your company’s processes, assets, personnel, and data. It should also include information on the administrators of your plan, emergency response contacts, and backup sites’ providers. In addition, it should include documentation on your company’s current risk assessment and an outline of the steps you’ll take to update it.
Developing a business continuity plan can be time-consuming, but it’s vital to ensure that your employees have the proper tools to continue working in an emergency. Identify the most important systems in your business and determine how long it will take to recover from an interruption. This will help you prioritize your needs and develop a timeline for recovery. You should also make sure to test your plan to ensure that it will work in the event of a disaster.
Businesses should also have a plan for how they will continue to operate if their physical workspace becomes unusable, such as by establishing remote work stations or renting office space. Failing to prepare for these situations can be disastrous for your business. You’ll need to invest a considerable amount of money to replace lost data or to restore your systems.
Another key element of a business continuity plan is to provide strategies for dealing with IT interruptions. This can include IT services, such as communications tools and enterprise software, as well as manual solutions that will allow your workforce to continue working until the computer systems are restored.
A business continuity plan is a living document that requires regular updates to reflect changes in the organization and the threat environment. The COVID-19 pandemic is a great example of the importance of updating your business continuity plan to account for new risks. It’s also important to train your team on the plan so they’re familiar with what to do in a crisis.
IT security
IT security is a critical business concern because data breaches are expensive and can damage the reputation of a brand. They also affect customer trust. Small businesses are particularly vulnerable to cyber attacks, as they often lack the resources to invest in strong security measures. Yet, it’s important for all businesses to have robust defenses in place, regardless of size. Thankfully, cybersecurity solutions are becoming more affordable and available for smaller businesses, even with modest IT budgets.
One of the best ways to get started is with a comprehensive risk assessment. This process includes interviewing key stakeholders from various departments and compiling a list of enterprise risks. It should include a detailed definition of critical processes and systems, as well as an analysis of their potential impact in the event of a disruption or disaster. It’s a time-consuming exercise, but it’s worth it because it allows you to develop a clear roadmap for what needs to be done to manage enterprise risks.
A thorough risk assessment also helps you identify the underlying vulnerabilities that attackers are using to attack your systems. It also helps you prioritize these vulnerabilities based on their threat to your core business. Then, you can use remediation techniques to reduce the risk of these vulnerabilities. It’s essential that you do this before a crisis hits, because a disruption can be costly in terms of lost revenue or productivity.
Most security leaders still struggle to provide their business counterparts with a clear picture of the organization’s security posture. In fact, only four in 10 security leaders say they can answer the question “How secure, or at risk, are we?” with a high degree of confidence. This is largely due to the fact that they don’t have access to consolidated data and associated business context.
The COVID-19 pandemic has forced many organizations to rethink their IT strategies, including cybersecurity. However, despite this, some smaller businesses remain in ostrich mode when it comes to their security needs. In some cases, these companies have no cybersecurity budget at all, while others have very limited protections in place. For example, 58% of small businesses with fewer than 50 employees have no antivirus software in place.
Data privacy
While data is fueling a tech boom, it’s also providing cybercriminals with the information they need to steal identities and perpetrate other crimes. That’s why data privacy has become a hot topic, with consumer advocacy groups calling for stronger protections. And the federal government is taking action, too. The FTC has regained its three-person Democratic majority and proposed extensive new rulemaking on commercial surveillance issues. And it’s pursuing enforcement actions against ad tech companies that sell personal data. In addition, the US Congress has made substantial progress towards passing comprehensive federal privacy legislation, although its passage during the current legislative session is uncertain.
In the meantime, state and local legislatures have been active, too. In California, for example, the Consumer Privacy Act requires businesses to inform consumers of what data they collect, how it’s used, and with whom it’s shared. The Act also allows residents to ask for a deletion of their personal data. It takes effect in 2023.
Businesses should take note, because if they’re not prepared to meet the requirements of these new laws, they could face fines and other costly penalties. For instance, Eni, an Italian oil and gas company, was recently hit with a GDPR fine of up to EUR16.2 million for failing to carry out proper risk assessments and restrict access to sensitive medical records to only those employees who needed it for their job duties.
This oversight was especially egregious given the fact that the company’s security practices had been previously praised by regulators. In fact, the infamous EUR225 million GDPR fine against WhatsApp earlier this year was a direct result of the messaging app’s failure to disclose its data-processing and sharing practices in a clear, easy-to-read privacy policy.
This kind of oversight can be easily avoided by combining an enterprise risk assessment with a business impact analysis. Combined, these two activities will help organizations identify critical systems and processes that cannot be compromised and determine what to do if they are. That way, the organization can maintain operations during a crisis, and be better prepared to recover when normal business activity resumes.
Hybrid workforce
In normal times, enterprise risk management is often treated as a tick-box exercise best left to a dedicated team of experts. But the COVID-19 pandemic has forced companies to rethink their approach to managing risks, both in order to survive the crisis and position themselves for success once it’s over.
One of the major changes brought about by the COVID-19 pandemic is the rise of hybrid workforce models. This new working model allows some employees to work remotely while others continue to be in the office. This shift is reshaping how businesses operate, as well as how they recruit talent and manage their teams.
However, a successful transition to a hybrid workforce requires more than just the right technology. Managers must have the skills and qualities to lead in this new working environment. This includes a clear understanding of the company’s values and goals as well as a strong sense of leadership. It’s also important to create a policy that will support the business model and ensure a high level of visibility across the organization.
Hybrid work policies can vary greatly from company to company, so it’s important to make sure that the policy is a good fit for the culture and objectives of the business. For example, the policy should clearly define key terms to ensure that everyone is on the same page. This will help avoid confusion and miscommunication. It’s also important to set expectations on when employees will need to be in the office, either for regular meetings or special events.
It’s also crucial to make sure that there is a strong communication channel between the office and the remote workers. This will help to prevent the feeling that remote workers are being ignored by their colleagues. Additionally, it’s important to make sure that all employees have access to the same resources. This includes tools like project management software, communication platforms, and collaboration solutions.
Another challenge of hybrid work is that it can be harder to keep track of employee performance. When employees are working remotely, it can be difficult to monitor their progress or identify areas where they need improvement. As a result, managers need to be more vigilant about providing feedback and ensuring that employees are on target with their targets. If an employee’s performance is subpar, the manager needs to understand why and take appropriate action.
