In recent years, cybercriminals have upped their game, typically staying a step ahead of the good guys. In 2021, we’ve seen some of the biggest data breaches yet and, with the rise of exploits such as ransomware, threat actors are increasingly targeting small and medium-sized businesses (SMBs)in the hopes of securing larger payments from less-protected companies. If attacked, SMBs experience downtime, data losses/breaches, and an ability to generate revenue while they deal with the fallout—this can devastate a company. Investing in risk management strategies that utilize a risk management framework (RMF) can help mitigate these threats and facilitate business continuity.
What is risk management?
Cyberthreats are a growing risk for all businesses, regardless of size. SMBs are increasingly targeted by threat actors because they assume these companies don’t employ strong cybersecurity frameworks to better protect themselves. Unfortunately, they are likely right. SMBs that invest in risk management strategies can better arm themselves against those looking to exploit them. In a nutshell, risk management is the process of identifying, monitoring, and managing both potential internal and external risks to help minimize or eliminate any negative impacts if a cybersecurity or other damaging event occurs.
What is the NIST risk management framework?
The NIST Risk Management Framework is considered the gold standard when it comes to risk management frameworks. Adopted in 2010, over the years, NIST’s guidelines have been updated as needed. Senior management and security personnel often use NIST’s structured guidelines template to assess their risks and improve security measures.
After procedures and protocols are established, management can proactively monitor threats and risks, tweaking things along the way for even more improvement. A risk management framework is a living and breathing process that should be updated and adjusted as necessary. Companies should definitely revisit their planning at least once a year or if any major changes in the company’s structure or technology occur.
How is the NIST risk management framework structured?
The RMF created by NIST is composed of a comprehensive and flexible seven-step process and can be a recipe for cyber risk management success.The steps are as follows:
- Prepare. An organization establishes essential activities it can use to prepare itself for managing security and privacy risks using the RMF.
- Categorize. Decision-makers categorize their systems and the information they process, store, and transmit using a business impact analysis (BIA) that has previously been performed. This helps them to determine any adverse impacts on the organization if a breach or data loss occurs that impacts confidentiality, integrity, or availability of systems.
- Select. This step is where decision-makers determine the controls that will be implemented to protect organizational systems based on risk assessments.
- Implement. During this step, leaders will determine controls, specify how controls will be deployed, and how documentation occurs.
- Assess. Risk management planners determine if the correct controls are in place, if they’re operating as intended, and if they’ll yield the anticipated results set in the requirements document.
- Authorize. Senior leaders determine any authorizations based on risk-based decisions outlined in the framework. They’ll develop, review, and approve security plans.
- Monitor. Risk management is an ongoing process and monitoring gives organizations the ability to maintain ongoing situational awareness about security and privacy postures and to continuously monitor all aspects of the plan and any identified risks.
Using an RMF is a process businesses of all sizes should consider. The full lifecycle approach the NIST framework provides can help companies better safeguard themselves. As an alternative, they can also turn to an experienced cybersecurity provider that possesses RMF experience. This can alleviate the costs associated with putting employees in charge of managing this process—many SMBs often find it’s more budget-friendly to let the experts take care of this important methodology.
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Watch a crash course on security and compliance in our video below!
Understanding the Divide Between Security and Compliance
Security involves implementing measures to protect data and systems from unauthorized access. This includes practices like encryption, access controls, and regular vulnerability assessments. Requiring multifactor authentication (MFA) and enforcing strong password policies are basic security practices. Everyone can relate to them in their daily digital lives.
Compliance, on the other hand, refers to adhering to regulations and standards that ensure data security and privacy. Frameworks like SOC 2, ISO 27001, and GDPR provide structured guidelines. Organizations must follow them to show their commitment to protecting data. Compliance is about proving that your security measures meet standards. This builds trust with customers and partners.
It’s important to note that robust security practices form the backbone of compliance. Without strong security, meeting regulatory standards would be nearly impossible. And, it would be hard to keep meeting them.
The Cost Factor of Security Breaches and Compliance
Investing in security and compliance is not just about avoiding fines and legal trouble. It’s also about protecting your company’s reputation and customer trust. Security breaches can lead to significant financial losses due to fines, lawsuits, and data recovery costs. The damage to reputation and loss of customers from a breach can be devastating.
Compliance efforts may seem costly. But, organizations should see them as an investment in trust and risk reduction. Following compliance standards prevents breaches. It also shows customers and partners your commitment to data protection. This enhances your edge in the market.
Security-First Approach for SaaS Startups
Prioritizing security from the outset is crucial for building a resilient SaaS business. A security-first approach involves adding security measures to your development and operational processes. You do this from day one. This proactive stance attracts clients who value data protection. It also fosters a security culture in your organization.
Embed security practices early. It creates a strong foundation and supports compliance later. Regularly updating your security protocols, conducting vulnerability scans, and educating your team about security best practices are essential steps in this journey.
The Security and Compliance Web
While security and compliance are distinct, they are deeply interconnected. Focus on robust security. This sets the groundwork for complying with regulations. This dual focus not only helps in protecting your data and systems but also builds trust with your customers and partners, positioning your SaaS startup for long-term success. Investing in security and compliance is not just a regulation. It’s a strategic move. It can drive growth and customer loyalty.