Cybersecurity Risk Management: An ERM Approach

The motivation for writing this book is to share our knowledge, analyses, and conclusions about cybersecurity in particular and risk management in general to raise awareness among businesses, academics, and the general public about the cyber landscape changes and challenges that are occurring with emerging threats that will affect individual and corporate information security. As a result, we believe that all stakeholders should adopt a unified, coordinated, and organized approach to addressing corporate cybersecurity challenges based on a shared paradigm. There are two levels at which this book can be read. For starters, it can be read by regular individuals with little or no risk management experience. Because of the book's non-technical style, it is appropriate for this readership. The intellectual information may appear daunting at times, but we hope the reader will not be disheartened. One of the book's most notable features is that it is organized in a logical order that guides the reader through the enterprise risk management process, beginning with an introduction to risk management fundamentals and concluding with the strategic considerations that must be made to successfully implement a cyber risk management framework. Another group of readers targeted by this book is practitioners, students, academics, and regulators. We do not anticipate that everyone in this group will agree with the book's content and views. However, we hope that the knowledge and material provided will serve as a basis for them to expand on in their work or endeavors. The book comprises ten chapters. Chapter 1 is a general introduction to the theoretical concepts of risk and constructs of enterprise risk management. Chapter 2 presents the corporate risk landscape and cyber risk in terms of the characteristics and challenges of cyber threats vis-a-vis the emerging risks thereof from the perspective of a business organization. Chapter 3 presents the idea of enterprise risk management and explains the structure and functions of enterprise risk management as they relate to cybersecurity. Chapter 4 provides the cybersecurity risk management standards, which may be used to build a cybersecurity risk management framework that is based on best practices. The cyber operational risk management process begins in Chapter 5 with the introduction of the risk identification function. Chapter 6 continues with the next step of this process by presenting the risk assessment procedures for evaluating and prioritizing cyber risks. Chapter 7 explains the activities in the third step in the ORM process of risk mitigation and provides examples of the tools and techniques for addressing risk exposures. Chapter 8 presents a critical function from an operational perspective for its role in detecting risk and continual improvement of the organization's cybersecurity processes through the reporting function. Chapter 9 discusses the crisis management steps that businesses must take to respond to and recover from a cyber incident. Chapter 10 emphasizes the essential ERM components that senior management should be aware of and cultivate to create an effective cyber risk control framework by focusing on the strategic aspects of cybersecurity risk management from a business viewpoint. This chapter proposes a cybersecurity ERM framework based on the content given in this book.