Data Risk Assessment

There are a number of risks to be aware of with regard to data in today’s digital climate. Businesses are going to great lengths—and for good reason—to mitigate risk and secure critical data. But what is data risk? Data risk refers to the potential negative consequences that can result from the collection, storage, use, or dissemination of data. These consequences often include financial losses, reputational damage, and legal liability.

There are several types of data risk that organizations need to be aware of. Here’s a quick look at some of the most common.

• Privacy risk: This type of risk occurs when personal information is collected, stored, or used in ways that violate an individual's privacy rights. Privacy risk can be managed by implementing strong data protection policies and procedures, such as data minimization and de-identification techniques.
• Security risk: Another type of data risk is security risk, which arises when data is not properly protected from unauthorized access, use, or disclosure. Organizations can mitigate security risk by implementing strong data security measures, such as encryption, access controls, and incident response plans.
• Compliance risk: Compliance risk arises when an organization fails to comply with laws, regulations, or industry standards related to data. Businesses can reduce compliance risk by staying informed about the laws and regulations that pertain to them. They might also implement compliance management systems and regularly monitor and test their data procedures.
• Operational risk: A fourth type of data risk is operational risk, which is related to day-to-day business operations and occurrences like system failures, human errors, and natural disasters. It’s important to have a disaster recovery plan in place to prevent operational damage. Companies should also perform regular backups and monitor their systems for potential failures.

Conducting a data risk assessment is one of the best ways that organizations can understand their level of risk. Trava’s free cyber risk assessment can give you a better idea of where you stand in terms of cybersecurity, equipping you with the information you need to enact meaningful change to better protect your data.

Data Risk Management

The term “data risk management” is thrown around a lot in the online world. But what is data risk management? In simple terms, data risk management describes the process of identifying, assessing, and responding to potential risks to data. It involves a combination of technical, administrative, and physical controls to protect sensitive information from unauthorized access, use, disclosure, disruption, modification, or destruction.

One important aspect of data risk management is identifying and classifying data based on its sensitivity and value to an organization. This allows companies to prioritize their risk management efforts and focus on protecting the most critical information. Another key element is implementing security controls to protect data. This might include technical measures such as encryption and access controls, as well as administrative controls such as employee training and incident response planning. Physical controls, such as security cameras and access cards, also play a role in protecting data.

Monitoring and incident response are important components of data risk management as well. Regularly monitoring for potential threats and vulnerabilities allows organizations to quickly detect and respond to incidents. When thinking about data risk management, businesses should also be sure to prioritize compliance with industry standards such as HIPAA, PCI-DSS, and GDPR. Standards like these contain crucial frameworks for cybersecurity.

Viewing data management risk examples is a great way to learn more about managing risk. For instance, something as simple as a healthcare organization implementing technical controls to protect patient medical records from unauthorized access would be considered a type of risk management. It can also be helpful to study risk management jobs to see how professionals manage risk on a broader scale.

Data Risk Examples

As discussed previously, browsing data risk examples and performing a data risk assessment can be extremely helpful. This is especially important when developing your own data risk framework. Viewing data governance risks, personal data examples, data privacy risk examples, and everything in between is key to implementing effective security protocols. You can see what other businesses have done well, and learn from their mistakes. Data risk examples include the following:

• Data breaches: Data breaches are perhaps the most common type of data risk that businesses face today. A data breach occurs when an unauthorized individual gains access to sensitive information, such as personal data or financial information. Examples of data breaches include hacking into a company's network, stealing data from unsecured servers, or phishing attacks that trick employees into revealing login credentials.
• Insider threats: Many businesses overlook the fact that risk can arise from within, as is the case with insider threats. When an employee, contractor, or other trusted individual causes harm to an organization by exploiting sensitive data, it is called an insider attack. For example, a disgruntled employee might steal data before leaving a company.
• Cloud security: With an increasing number of companies moving their data to the cloud, a whole new type of threat has taken form. Examples of cloud security threats include misconfigured cloud servers that leave data exposed, or unauthorized access to data stored in the cloud.
• Mobile device security: Mobile devices can also pose a risk to data security. As such, it’s important for both organizations and individuals to secure their mobile devices to protect sensitive information. Phones, tablets, and laptops aren’t inherently dangerous to use, but when left unfortified, they can open the door to malicious third parties.
• Social engineering: Social engineering refers to when an attacker tricks individuals into revealing sensitive information or taking actions that compromise security. Some of the most common examples of social engineering include phishing emails, pretexting (pretending to be someone else), and baiting (offering something of value in exchange for information).
• Malware: Malware is software that’s used to steal data or disrupt operations. Viruses, worms, and ransomware are all types of malware. ‍
• Human error: Human error can also be a source of data risk. Examples include employees who inadvertently share sensitive information with the wrong person, or who fail to follow security policies and procedures.

NIST Risk Management Framework

The National Institute of Standards and Technology (NIST) Risk Management Framework is a process for managing security and privacy risks in federal information systems. It provides a systematic, repeatable, and cost-effective approach for managing security and privacy risks, and is designed to be consistent with other NIST guidance and international standards. Understanding and complying with the NIST Risk Management Framework is crucial for businesses that are serious about data risk management.

NIST outlines some risk management framework steps that businesses should follow to achieve best results. They are:

1. Categorize
2. Select
3. Implement
4. Assess
5. Authorize
6. Monitor

The NIST RMF also includes a set of security controls that organizations can use to protect their information systems. These controls are grouped into three categories:

• Basic security controls: These are the minimum set of controls that must be in place to protect an organization's information systems.
• Hybrid security controls: Hybrid controls are used in conjunction with basic controls to provide additional protection.
• Derived security controls: These controls are specific to the organization and are developed based on the results of the risk assessment.

The process is flexible and can be tailored to the specific needs of an organization. It is designed to be integrated with other existing risk management processes, such as those used to manage operational risks, financial risks, and compliance risks. It also promotes continuous monitoring and improvement so that organizations can adapt to changing threat landscapes and technology advancements.

Viewing a risk management framework example, or downloading a risk management framework PDF can be helpful when learning more about NIST and determining how to incorporate it into your own business. By taking the time to understand this framework, you can improve your data security and remain compliant with critical standards and regulations.

Data Risk Assessment Checklist

A data risk assessment checklist is a tool used to identify potential vulnerabilities and threats that could result in data breaches, data loss, and more. These checklists typically include a series of questions or prompts that guide the assessor through different areas of the organization's data management and security processes. Data risks and controls are commonly featured on checklists, as is the organization’s overall governance policies and procedures related to data.

A good checklist might also include information on a company’s data backup and recovery process. In general, it should cover data loss prevention and response. This can help organizations evaluate their current performance and determine what needs improvement. The checklist should be reviewed and updated on a regular basis to ensure that it remains relevant and effective.

You can use the results of the assessment to develop a risk management plan that addresses any identified vulnerabilities or threats. It's important to note, however, that a cyber security risk assessment checklist is only one component of a complete risk management program. Organizations should also perform regular vulnerability assessments and penetration testing, and should have incident response plans in place to handle data breaches or other security incidents. By implementing robust security measures, businesses can stay on top of cybersecurity and keep their data safe at all times.