The Cybersecurity Guide to Governance, Risk, and Compliance

CHAPTER 7Risk Management

“Effective risk management in the digital realm is not about building impenetrable fortresses, but rather about forging resilient organizations capable of adapting and evolving in the face of ever‐changing cyber threats.”

Risk management, a critical component of cybersecurity governance, entails various elements. Starting from a basic understanding of risk management and its importance, one must also navigate the complexities of the risk management life cycle, FFIEC handbooks, governance frameworks, and risk assessment techniques. The field encompasses diverse risk types, including third‐party, technology, cybersecurity, compliance, and legal risks. Insights into effective monitoring and reporting mechanisms are equally important. Overall, a deep understanding of risk management from a business perspective is crucial, coupled with practical guidance on adhering to compliance requirements and implementing best practices.

RISK MANAGEMENT IN THE BUSINESS

Risk management is a concept intrinsic to the fabric of any successful business. It refers to identifying, assessing, and controlling threats that an organization might face. These threats or risks could stem from various sources, including financial uncertainties, strategic management errors, legal liabilities, accidents, and natural disasters.

Understanding the importance of risk management is vital for an organization's resilience and longevity. It equips a business with the tools to preemptively ...