Digital risk arises as a result of a combination of threats and vulnerabilities in the digital environment, undermining the achievement of economic goals, violating the confidentiality, integrity and availability of information. This is a vulnerability that is associated with interaction with several types of data exchange via the Internet. If there are available channels for obtaining confidential information, the company must make sure that they are not used for malicious purposes, which jeopardizes the very security of the data.

Thus, digital risk management involves the safe use of data exchange channels, as well as enhanced control over what information can be transmitted through them, to whom and for what purpose. The first step for managing any risks is to determine exactly what constitutes a threat.

Types of digital risks

Take a look at the categories of threats that you may have to deal with. They are classified as digital risks. Each type of digital risk requires its own approach to managing it and reducing the threat level.

The following digital risks are distinguished:

– cyber attacks;

– internal threats;

– data leak;

– weak process automation systems;

– incorrectly configured cloud systems;

– errors in the operation of third-party systems; obtaining confidential data;

– non-compliance with the requirements;

– lack of permanent data protection.

Cyberattacks and internal threats go in tandem. These risks are associated with malicious actions of individuals who enter the system or are already there. Data leaks refer to accidental disclosure of information either due to deception or due to disclosure of information.

Process automation systems and cloud systems may be incorrectly configured, which will not allow them to provide the company with the proper level of security. You need to carefully configure and constantly check these systems, because they work autonomously and can sometimes be influenced from the outside.

Errors in the operation of third-party systems or related companies can cost the owner of the organization dearly. Collective responsibility for data privacy means that the level of data security may not meet the requirements of privacy standards due to errors made by friendly companies or installed software. This leads to hackers and fraudsters obtaining private information.

Non—compliance with the requirements means that the company may be considered by other organizations as “unreliable” – business partners will refuse to do business with it. Certification informs other companies that the business has a low level of risks, that it is possible to do business with it.

It is necessary to provide permanent protection both for the stored data and for the business as a whole. The sustainability factor may also concern public relations and the restoration of the company’s reputation. Businesses often have to go through a lot to restore their good name after a disaster, such as a data leak, which attracts unnecessary attention to the organization and puts it in a negative light.