In recent times, nations around the world have experienced a marked rise in cybercrime. With the ever-evolving threat and sophistication of cyber attacks on corporations across the globe, it has become critically important for businesses to adopt robust pre-emptive measures to counteract the schemes of cyber criminals.
We have witnessed Governments taking action to address the growing risk of cybercrime which is often seen as a growing threat to national security. Recently, Singapore adopted a new cybersecurity strategy to create a robust framework in respect to cybercrime. Government action alone cannot address the risks associated with cybersecurity.
What are steps that a business can take to address the growing risk of cybercrime?
Basic steps to managing cybersecurity
Firstly, it is easy to forget basic but crucial steps. The company should regularly update its operating systems and backup its files. It is also important to implement advanced authentication and ensure that all sensitive data is encrypted.
In this regard, businesses ought to establish cyber security frameworks to manage cyber security threats. For instance, the National Institute of Standards and Technology (NIST) Cybersecurity Framework consists of guidelines which focus on identifying, deterring, detecting, responding to and recovering from cyber security attacks.
Next, companies may consider instituting mandatory cyber security breach readiness training and simulation, to prepare for any breach that may occur. All employees should be trained to detect and report cyber security threats.
Importantly, managing cyber risk is a business critical activity and as such, cyber security should be regularly discussed at the highest levels. For example, management needs to receive and review frequent and adequate cyber risk reports. It may therefore be prudent to appoint a Chief Information Security Officer to take charge of the security programme.
Additionally, businesses can consider purchasing cybersecurity insurance to help mitigate the financial impact of cybercrimes when they do occur. Companies should look to negotiate specialized cyberinsurance products that suit their risk profiles, cover first and third-party losses, and provide for breach response experts.
Finally, information sharing is an efficient way to improve threat awareness and intelligence. In this respect, it would be beneficial for companies to collaborate with other organizations to share best practices.
As the old adage goes, prevention is better than cure. There are numerous initiatives which businesses can adopt to guard themselves against cyber crime, and it would only be wise to start now.
Cybersecurity is one of the subjects that we will be addressing at our Doing Business Globally series in India this February.
As Indian businesses expand globally to capitalize on it’s growing business and economic influence, the need to navigate a host of unfamiliar regulatory environments, decide how to protect assets and make sound investment decisions will increase. These are just some of the areas in which we provide insights and guidance so that Indian companies can successfully do business globally.