Cyber risk management, also known as cybersecurity risk management, is the process of identifying, prioritizing, managing, and monitoring risks to information systems. Cyber risk management has become a vital part of broader enterprise risk management efforts, as companies across industries depend on information technology to carry out key business functions today, exposing them to cybercriminals, employee mistakes, natural disasters, and other cybersecurity threats. The process of cybersecurity risk management involves identifying an organizations digital assets, reviewing existing security measures, and implementing solutions to monitor, identify, and mitigate cyber security risks. The following are some key aspects of cybersecurity risk management:

• Cybersecurity risk assessment: This is the first part of the cybersecurity risk management process, which provides a snapshot of the threats that might compromise an organizations cybersecurity and how severe they are. Based on the organizations risk appetite, the cybersecurity risk management program then determines how to prioritize and respond to those risks.

• Risk prioritization: Organizations prioritize risks based on the likelihood of threats exploiting vulnerabilities and the potential impact. Risks are prioritized, with organizations choosing from a variety of mitigation strategies.

• Ongoing monitoring: Cybersecurity risk management provides ongoing monitoring, identification, and mitigation of threats.

• Risk reduction: Cyber risk management programs can help reduce the impact and likelihood of threats. Companies use the cybersecurity risk management process to pinpoint their most critical threats and select the right IT security measures based on their business priorities, IT infrastructures, and resource levels.

Cybersecurity risk management is important because it helps a business assess its current cybersecurity risk profile, informs decisions the security organization will make moving forward in order to reduce the level of risk and address vulnerabilities, and brings about situational awareness within a security organization.