Risk Management

Digital Risk Management for SMEs: 3 Key Areas to Focus

In the era of digitization, escaping exposure to digital risk is next to impossible. Even the indirect means like vulnerabilities in supply chains, chances of reputation damage are high.

In this article at Digitalist, Andre Smith explains that consequences of digital risk may turn severe for small and medium enterprises (SMEs). He quotes statistical data that indicates about 60 percent of SMEs suffering a cybersecurity incident move out of business within six months.

Need for Digital Risk Management

The real picture of cyber threats made digital risk management a business imperative that SMEs may no longer afford to ignore. Hence, they need to craft a comprehensive digital risk strategy. Here are three key areas SMEs must focus on:

  1. Put Security in Front: The fundamentals of any digital risk strategy must include a thorough review of all customer-facing digital systems and back-end technologies. Ensure no security updates or patches are missing by going through every software and hardware component. If all systems survive the scrutiny, it means your business has eliminated all unforeseeable digital risks.
  2. Supportive Business Processes & Policies: To maintain a solid foundation, ensure that the business processes are not tailored to maintain operational security. This means, create and execute sound policies with regard to customer data retention and handling to make future compliance easier.
  3. Plan for the Unforeseen: Advance planning is vital to handle any cybersecurity incidents when they arise. To militate against a worst-case scenario, maintain operational data backups and a quick response plan to deal with the potential breach.

The author believes that SMEs focusing on these three key areas of digital risk management will end up with a roadmap that addresses the major areas of concern. Click on the following link to read the original article: https://www.digitalistmag.com/cio-knowledge/2019/01/03/3-pillars-of-digital-risk-management-for-smes-06195062

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