Why Every Organization Needs a Network Security Risk Assessment
Did you know that a cyber attack occurs every 39 seconds? In this high-risk digital environment, protecting the network becomes essential. The network security risk assessment is the best way to analyze the threat that may affect your company’s functioning. TTR Technology cyber security solutions explain how NSRA is important for protecting your valuable resources. Intel Security’s report on “The Threat Economy: Cybersecurity Implications of the IoT” predicts a $10 trillion loss to the global economy. Let’s jump into the blog and learn more about why your business must have a security risk assessment. What is a Network Security Risk Assessment? To gain a clear understanding of the potential security risks within a network, a network security risk assessment is a detailed audit. The main goals are to identify risks, estimate their consequences, and manage possibilities to protect the organization from them. While a general security risk assessment investigates a range of potential threats and risks, an NSRA primarily identifies network-associated elements as threats, including hardware, software, and data circuits. Based on Gartner research, by 2025, 60% of companies will adopt cybersecurity risk as a major criteria for third-party dealings and business collaborations. Why Does Every Organization Need a Network Security Risk Assessment? The increasing frequency of cyber threats expands the need for an NSRA. Cybersecurity Ventures predicts that cybercrime will cost the world $10.5 trillion annually by 2025. It’s crucial to understand that these threats pose no protection to any organization, regardless of its size or industry. Here’s why an NSRA is indispensable: Universal Threats No one is safe, organizations and individuals are equally vulnerable to cyber threats. According to Verizon’s Data Breach Investigations Report, small business owners are convinced that their business is not under attack, but the statistics are shocking: 43% of cyber attacks affect small businesses. Regulatory Requirements These include regulatory requirements such as GDPR, HIPPA, and CCPA, which require frequent security reviews. A company may face GDPR fines of up to 4% of its annual global turnover, or €20 million. Financial Implications IBM’s research indicates that the average global cost of a data breach in 2021 was $4.24 million. Effective risk assessments, which include preventive measures in areas of weakness, can help to avoid such costs. Protecting sensitive information It is particularly important for businesses in the healthcare and financial industries, where it is not only legal but also ethical to protect patients’ and customers’ information. For example, Anthem Inc. had to pay $16 million for a data breach affecting 78.8 million people. Trust and Reputation Strong security measures build confidence with customers and other stakeholders in the organization. In 2020, 87% of consumers, according to a recent PwC survey, were willing to switch to another firm if they did not trust the company with their data. Organizational Resilience Risk management involves identifying the risks and then neutralizing them in a bid to achieve more security, which allows an organization to recover faster in the event of a breach. Why is network security risk assessment important? Protection Against Cyber Threats This allows organizations to prevent potential attacks before they happen. For instance, Target Corporation suffered a data breach in 2013, where the attackers accessed 40 million credit card numbers because of an unpatched vulnerability. Regulatory Compliance Daily check-ups help maintain legal compliance, thereby preventing legal consequences related to standards. The GDPR has penalized some corporations, including British Airways, with £183 million. Financial Safeguarding Risk management helps minimize the consequences of a breach, which leads to expensive damages and remedial costs. Equifax’s 2017 breach cost the company over $1.4 billion in legal fees and security upgrades. Reputation Management An effective security strategy creates confidence and trust among customers and stakeholders. 2 hacks on Yahoo resulted in the compromise of 3 billion accounts, damaging the company’s reputation and impacting the Verizon acquisition. Vulnerability Reduction Risk analysis and response strengthen the network against future risks because they thoroughly identify weaknesses. Microsoft is an example of an organization that uses regular patch updates and therefore reports few vulnerabilities. Key Components of a Network Security Risk Assessment Asset Identification and Valuation Prioritizing hardware, software, and data through a method of cataloging that determines the valuable task. For example, in a financial organization, customer information and any transaction records are on priority concerns because they are sensitive. Threat Identification Identifying threats that may cause harm, such as malware, phishing, and insiders, among others. The SolarWinds attack in 2021 highlighted the importance of protecting against advanced threats. Vulnerability Assessment This process involves identifying the vulnerabilities that potential threats could exploit. Examples of severe weaknesses that needed immediate addressing include the ex-Heartbleed vulnerability on OpenSSL. Risk Analysis and Evaluation Assessing major threats that can take advantage of established prospects. A vulnerability in a high-risk system should be addressed as soon as possible, whereas a low-risk issue in a less significant system can wait. Risk Reduction Strategies Measures to address the identified risks within the company. Multi-factor authentication techniques are quite effective in preventing unauthorized access in an organization. What are the steps to conduct a security risk assessment? Preparation and Planning When planning and designing the NSRA, outline its purpose and goals, which should involve assessing network security risks linked with particular reference to essential infrastructure within several business segments. It is important to enlist a team of specialists from the IT, security, and compliance departments to conduct a holistic assessment. Identifying and Categorizing Assets Prioritize hardware such as servers, routers, switches, end-users, software including operating systems, applications, ERP systems, as well as data, which include personal identity information, financial records, etc. Identifying Potential Threats and Vulnerabilities Define and discuss threats, including viruses, worms, Trojan horses, spam, and other malicious software, ransomware, phishing, and other types of threats, particularly zero-day threats. Identify internal and external threats, as well as risks associated with incorrect configurations, software updates, and encryption. Risk Analysis and Prioritization Assess the probability and risk of threats taking advantage of given opportunities. Always deal with threats that have the potential