Page 120 - Cyber Defense eMagazine April 2023

insurance. According to Future Market Insights, an ESOMAR-certified market intelligence firm, the global
cybersecurity insurance market is expected to garner a 19.1% CAGR from 2023 to 2033.

Governments are also progressively promoting self-sufficiency in critical technology through industrial
strategy, which is fueling geopolitical competitiveness. Long term, this might pose serious dangers to the
IT industry. Therefore, these hazards might prevent IT organizations from expanding and prevent them
from creating effective backup strategies.

Thus, in this blog, we will discuss the importance of a cyber risk balance risk for data protection, how can
IT leaders mitigate the risks via gaining organizational resilience, and how the Governance, Risk, and
Compliance (GRC) programs doubling the security of data.

Opting for a cyber risk balance sheet can offer protection.

Cybersecurity is one of the most visible manifestations of the relationship between technology and
geopolitics. Cyberattacks motivated by geopolitics may have a big impact on cybersecurity, risk
management, and digital transformation strategies. While no firm is immune to such attacks, those that
have robust data security systems, well-trained workers, and effective cyber defenses are expected to
be less vulnerable. As a result, many IT leaders are looking to a cyber risk balance sheet preparedness
strategy as a reliable IT contingency plan.

One "power move" that executives may undertake to enhance their decision-making about cyber risk is
to create a cyber risk balance sheet. This straightforward change in corporate behavior and risk thinking
integrates cyber hygiene with the current corporate risk management mechanism in a way that fosters
knowledge, promotes wise conduct, and incentivizes sensible investments. This is achieved by making
the various invisible ledgers of cyber hazards apparent via the power move of the cyber risk balance
sheet.

A board member can advise their cyber leaders to assign their teams the duty of developing and
evaluating a cyber risk balance sheet that lists the cyber incidents that might have a meaningful financial
impact on the firm. The following are the essential processes in creating a cyber risk balance sheet:

Create a methodology for quantifying cyber risk that is suited to the organization's risk profile. Using
Factor Analysis of Information Risk (FAIR), along with other industry standards like NIST SP 800-53 as
well as ISO 27005, this may be built.

Identify the most important cyber threats that affect the company and assess the likelihood of the threat,
the assets at risk, and the efficacy of the cyber controls currently in place to minimize them.

Create a balance sheet that combines planned or present investments in cyberspace with the likelihood
of in-scope cyber threats and liabilities.

Once this balance sheet is completed, periodically examine and discuss it using the cost in dollars of
cyber threats as a foundation for comprehending and converting the underlying impact on the bottom
line. This ledger may be used to assess the effectiveness of current security efforts and to require Chief
Information Security Officers (CISO) to justify additional cyber spending in terms of a profitable return on

120