Technical Risks
These involve risks related to the failure or malfunctioning of technology, including:
- Software Vulnerabilities: Flaws or weaknesses in software that can be exploited to compromise system security.
- Hardware Failures: Physical failures of servers, hard drives, and other components that can lead to data loss or system outages.
- Outdated Technology: Using outdated technology that may not be supported or secured, making it vulnerable to attacks.
What is Digital Risk Management? Steps and Functions
Digital Risk Management (DRM) is a comprehensive approach for identifying, assessing, and addressing risks associated with digital assets and operations in an organization. It’s aimed at protecting against digital threats like cyberattacks, data breaches, and system vulnerabilities, while also ensuring compliance with relevant regulations and standards.
The first step in DRM is to identify all digital assets within an organization, such as websites, data, applications, and systems. Once assets and threats are identified, the next step is to assess the potential risks these threats pose to the digital assets. Based on the risk assessment, organizations then develop and implement strategies to mitigate identified risks. This can involve a range of actions, including strengthening cybersecurity measures, implementing access controls, encrypting sensitive data, and developing incident response plans. DRM also involves ensuring that digital operations comply with relevant laws, regulations, and industry standards