Modern organizations thrive on digital connections, underpinned by cutting-edge cyber technology and integral to daily operations. Increasing investments in these digital links drive strategic goals, powering revenue targets and affecting virtually every facet of an organization such as recruitment, supply chain management, and finance. Cyber technology has evolved into the very foundation of the modern enterprise.
However, as cyber has rapidly transitioned from a transformative force to a fundamental necessity, the assessment, management, and comprehension of associated risks to the business have not kept pace. Risk management for most organizations remains rooted in the traditional categories of enterprise risk management (ERM), focusing on an operational, financial, strategic, legal, and/or compliance lens. Yet, at the core of risk within each of these categories lies the technology used for execution.
ERM is, “the process of planning, organizing, directing and controlling the activities of an organization to minimize the deleterious effects of risk on its capital and earnings.”[1] ERM effectively centers discussions of risk on its implications for the business. Cyber risk should be no exception.
Organizations can no longer afford to treat cyber risk as anything other than business risk. This means that cyber risk management must be integrated into the broader cadence of managing risk for the enterprise. Cyber risk must be assessed in terms of its impact on the business and integrated into all other ERM risk categories that the organization measures and manages. Senior executives can no longer afford to relegate cyber risk to the technologists; it must be understood and calibrated against other enterprise risks.
Cyber Enterprise Risk Management (CERM) represents the pinnacle of maturity in cyber risk management. When effectively executed, decisions regarding cyber risk consistently align with business strategy and the overall risk posture of the organization. Effective CERM equips both technical and nontechnical leadership to calibrate broader risk across the enterprise, informed by cyber risk. Given the critical role that technology plays in organizations, embracing CERM is an essential step not just in cyber risk management, but in broader ERM as well.
Pellonium empowers CERM by enabling organizations to manage their cyber risk exposure as a primary business risk. It provides security teams with data-driven insights to inform not only cyber risk management, but broader execution informed by associated technology risk, fostering confidence in organizational and investment decisions. Contact us to discover more about how Pellonium can support your CERM execution.
Contact us to discover more about how Pellonium can support your CERM execution.
