X-Analytics can help you optimize risk mitigation. Check out the X-Analytics prioritized guidance.
What is Risk Mitigation?
Risk mitigation refers to a risk management technique in which risk is reduced. In the case of cyber risk, risk mitigation is a countermeasure to threat aimed to reduce the likelihood of risk. This could be done by implementing cybersecurity frameworks (such as CIS CSC or NIST CSF), technologies (such as web application firewalls or endpoint protection), and concepts (such as secure development and zero trust). Additionally, some businesses select risk avoidance in place of risk mitigation.
What is the Difference Between Risk Avoidance and Mitigation?
Risk avoidance is the focus of eliminating particular risks versus reducing risk (or mitigating). Risk avoidance removes risk from the business. As an example, you can remove certain record types, outdated systems, or entire business lines as a means of eliminating risk. This strategy can be a highly effective risk strategy, which can simultaneously improve the cost of risk transfer.
What is the Goal of Risk Mitigation?
Since all risks cannot be eliminated, the ultimate goal of risk mitigation is reducing risk to an acceptable level. A business can define this level as a place where the cost of mitigation does not exceed the negative impact of the aggregated risks. The definition of acceptable risks can be any of the following:
Exposure Ratio Value: Exposure ratio is your total cyber exposure divided by annual revenue. Cyber exposure is the sum of all possible impacts, each multiplied by the probability of those impacts. As an example, you may set your acceptable level as 0.5%, which is way of saying that your risks cannot exceed half a percent of revenue.
Cyber Maturity Value: Cyber maturity is the quality of your cybersecurity framework implementation. Cyber maturity is generally measured on a scale of 0 to 5. 0 represents no quality and 5 represents the best quality. As an example, you may set your acceptable level as 4.0, which means the average of all controls (across all functions) would be 4.0 or greater.
NIST CSF Tier Value: Within the NIST Cyber Security Framework (CSF), there is the concept of four tiers. Tier 1 is partial, Tier 2 is risk informed, Tier 3 is repeatable, and Tier 4 is Adaptive. NIST has a detailed definition for each that extends beyond the simple intuitive description. As an example, you may set your acceptable level at Tier 3.0, which means that all NIST sub-categories tagged as Tier 1, 2, and 3 must be met.
CIS CSC Implementation Group Value: Like NIST CSF tiers, the CIS CSC framework uses the concept of implementation groups (IG). CIS CSC includes three implementation groups. IG1 requires limited cybersecurity expertise to thwart general attacks, IG2 requires some cybersecurity expertise to thwart somewhat sophisticated attacks, and IG3 requires cybersecurity expertise to thwart sophisticated attacks. As an example, you may set your acceptable level at IG2, which means that all CIS CSC controls tagged as IG1 and IG2 must be met.
Of course, there are other means of defining an acceptable risk level that may include further insights from legal, marketing, finance, compliance, and other.
How Do I Use X-Analytics to Optimize Risk Mitigation?
The X-Analytics business intelligence application offers a variety of ways to optimize risk mitigation. After you have created your X-Analytics profile, including control profile, you will have immediate access to your risk mitigation insights.
Option 1. The Cyber Risk Condition Report
Go to the Report Center and select Cyber Risk Condition. Within this report, you can see if your exposure ratio is at an acceptable level.
If cyber exposure is not at an acceptable level, then focus on the Top 5 Risk Scenarios by Financial Impact or the Top 5 Control Areas to Reduce Cyber Exposure.
You can use both tables to prioritize risk mitigation with great returns on your investment.
Option 2. The NIST CSF Report
Go to the Report Center and select Control Framework, and then select NIST CSF. Within this report, you can see if your current NIST CSF implementation, cyber exposure, and NIST CSF Tier.
Depending on your conclusion and risk acceptance levels, you can focus on NIST categories, functions, and tiers to optimize your risk mitigation plan.
In the above graph, NIST CSF categories are prioritized from best to worst in reducing cyber exposure.
In the above graph, you can see which NIST CAF function offers the best improvement to your cyber exposure.
In the above two graph, you can see your distant to target NIST Tier and you can see which NIST Tier aligns best with your exposure ratio acceptance level.
Option 3. CIS CSC Report
Go to the Report Center and select Control Framework, and then select CIS CSC. Within this report, you can see if your current CIS CSC implementation, cyber exposure, and CIS CSC implementation group.
Depending on your conclusion and risk acceptance levels, you can focus on CIS CSC controls and functions to optimize your risk mitigation plan.
In the above graph, CIS CSC controls are prioritized from best to worst in reducing cyber exposure.
In the above graph, you can see which CIS CSC function are above or below target to optimize your risk mitigation plan.
In the above graph, you can see which CIS CSC function offers the best improvement to your cyber exposure.
Option 4. Risk Mitigation Simulator
Go to the Report Center and select Risk Mitigation Simulator. Within in the Risk Mitigation Simulator, you can realize the potential benefit of a control enhancement before actually investing in that enhancement. Additionally, you can compare the benefit with estimated cost to understand return on investment (ROI).
In the above image, three controls were enhanced to 70% implementation and the benefit was compared to an estimated mitigation cost of $1,850,000 to show an ROI of 108%.
The Risk Mitigation Simulator supports NIST CSF and CIS CSC controls.
In Summary
Risk mitigation refers to a risk management technique in which risk is reduced. In the case of cyber risk, risk mitigation is a countermeasure to threat aimed to reduce the likelihood of risk.
Risk avoidance is the focus of eliminating particular risks versus reducing risk (or mitigating). Risk avoidance removes risk from the business.
Since all risks cannot be eliminated, the ultimate goal of risk mitigation is reducing risk to an acceptable level. A business can define this level as a place where the cost of mitigation does not exceed the negative impact of the aggregated risks.
The X-Analytics business intelligence application offers a variety of ways to optimize risk mitigation.
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