Where Does Cyber Risk Come From Within an Organization?

Why is it important to know where risks come from?

When it comes to developing an effective cybersecurity strategy, organizations need to know where risks come from within their business to be able to protect themselves. This means identifying vulnerable assets, understanding how data is accessed and managed across departments, assessing the security posture of third-party suppliers, and recognizing potential insider threats. Without this visibility, it becomes nearly impossible to prioritize security defenses, allocate the right amount of resources, or respond appropriately to any incidents that occur.

A proactive approach to identifying risk strengthens the cybersecurity protection a business has and also allows security teams to put measures in place that are aligned with their specific threat landscape.

So, where does cyber risk come from within an organization?

Internal risk

Internal risks, also known as insider threats, are a significant challenge to an organization’s security. These risks come from within the organization, from individuals, internal systems, and operational processes. They create a complex web of potential threats and vulnerabilities that require comprehensive management and mitigation strategies.

One of the main sources of internal risk is employees and their actions where both malicious and unintentional mistakes can lead to cyberattacks and data breaches.

An unintentional data breach comes from human error, which plays a large role in data loss and cyberattacks. Employees may accidentally share sensitive information to the wrong person, leave confidential documents unattended, or even become victims of phishing attacks. While these mistakes are not malicious, they can have serious consequences.

On the other hand, intentional data breaches can happen deliberately by employees who steal or leak sensitive information. This could be because they are looking for financial gain, have personal grievances against their employer, or espionage. These malicious employees can exploit their privileges and share information or give access to cybercriminals who will then go on to perform cyberattacks.

Lastly, when employees access data or systems beyond their authorized roles, they introduce risk. This unauthorized access could be opportunistic, driven by curiosity, or with a specific malicious intent. The lack of proper role-based access controls can significantly accelerate this issue.

Third-party risk

Security teams work hard to put defenses in place to protect their infrastructure and data. However, they have very little control over the cybersecurity of their suppliers and vendors, who may be inadvertently leaving the organization open to third-party attacks.
The dark web provides a space for cybercriminals to exploit vulnerabilities and launch targeted attacks against supply chain partners. From stolen credentials to insider information, the threat to organizations is vast.

The threat from a supply chain is directly linked to the number of suppliers, which increases the number of potential attack entry points. The more digital solutions are used by a business, the more potential entry points cybercriminals have. Exposure to attack can result from known software vulnerabilities, zero-day exploits, or overlooked configuration errors.

Supply chain attacks can result in a cybercriminal harvesting a lot of data that spans hundreds of different organizations, which makes this attack vector popular. While gaining access to an organization’s supply chain may take time, once they’ve done it all of the data they’ve collected will then go on to be sold or traded on dark web marketplaces. And, if an organization’s supplier doesn’t make them aware a breach has happened, they will be none the wiser if they have been compromised and at risk of further cyberattacks.

Compliance risk

Compliance risk within cybersecurity involves ensuring adherence to all applicable legal and regulatory frameworks an organization needs to comply with, which can vary depending on the organization’s location, and industry. This includes compliance with international regulations such as GDPR, sector-specific standards like HIPAA for healthcare, and regional laws pertaining to data handling and cybersecurity practices.
Organizations must also adhere to industry-specific cybersecurity standards. These standards often provide guidelines for secure configurations, vulnerability management, incident response, and security awareness training. Examples include NIST frameworks, ISO 27001, and PCI DSS for payment card security.

Risks associated with poor reporting and disclosure of cybersecurity incidents are a crucial aspect of compliance. Many frameworks need organizations to quickly report cybersecurity incidents, particularly those that involve data breaches or affect critical infrastructure. Failing to report incidents in a timely manner can lead to costly fines. Accurate and comprehensive incident reporting is essential for understanding the scope and impact of breaches, improving future security measures, and demonstrating accountability to regulatory bodies and the public.

Technology risk

Technology risk is created by threats and vulnerabilities that come with an organization’s dependence on its technological infrastructure. This risk expands when the organization fails to prioritize and address potential weaknesses, essentially leaving its doors open for cybercriminals.

This can lead to cyberattacks, put data integrity, operational continuity, and the overall reputation of the business at risk. Several key factors contribute significantly to escalating these risks.

Inadequate patch management leaves systems susceptible to exploitation as known vulnerabilities are not addressed promptly. The presence of Shadow IT, where unauthorized hardware and software is used by employees, creates blind spots in the organization’s security posture, making it difficult to monitor and control potential breaches.

Furthermore, relying on outdated IT equipment introduces compatibility issues and security risks that are challenging and costly to mitigate.
These issues result in an environment where cyber threats can grow, underlining the critical need for a comprehensive and proactive approach to technology risk management.

Operational risk

Operational risks are the everyday problems and weak points that come from how a business normally runs. Issues can arise when the business’s normal ways of doing things don’t work well or processes aren’t being adhered to, which cybercriminals can exploit and find a way into an organization’s network.

This could mean that the steps they take, the systems they use, the checks they have in place are broken, aren’t good enough, or have broken down. 

For organizations that use automation without embedding proper security controls, it can create cyber risk. If scripts, APIs, and system integrations aren’t securely configured, monitored or audited, they can become an entry point for cybercriminals. Something like hardcoded credentials in a script or permissive API access can lead to security breaches.

Another source of operational risk comes from weak or inconsistent change management practices. As businesses evolve and respond to market changes, systems are frequently updated, or replaced. If these changes are made without proper documentation, security reviews, or rollback plans they can open up vulnerabilities.

Additionally, operational processes often suffer from broad access controls. Employees are sometimes given more access than they need either for convenience or due to a lack of role management. If an employee account is compromised through phishing or credential theft, an attacker can move across the network accessing systems and data that should have been restricted.

What is your organization’s risk based on its dark web exposure?

Download Searchlight Cyber’s report and in as little as five minutes you can see if your company’s sensitive data has been exposed on the dark web forums, marketplaces, or messaging platforms like Telegram.

Your organization’s details will be cross-referenced against more than 475 billion recaptured data points in the Searchlight Cyber platform. The findings presented in the report define the increased likelihood that your organization will suffer a cyber incident using a risk calculation based on identified correlations between dark web data and historic breach patterns.

Download the report to find out your organization’s exposure to the dark web.

How to mitigate cyber risk

Organizations can mitigate the risks they face from cybercriminals by employing tools that can help them continuously identify vulnerabilities and monitor threats from the dark web.
Using Attack Surface Management (ASM) tools organizations can identify, manage, and secure all digital assets they own, operate, or are responsible for across the internet. Unlike traditional security measures, which are important for known internal systems, ASM broadens the scope to external-facing assets, such as cloud computing, third-party vendors, or forgotten web applications that may be exposed to potential attacks.

• ASM tools continuously scan the web to detect:
• Exposed or unpatched applications.
• Misconfigured cloud services.
• Subdomains and assets not implemented by the IT team.
• Third-party vulnerabilities.
• Unencrypted databases.

Dark web monitoring is the process of actively tracking the dark web for signs that sensitive information has been exposed or that an organization is being targeted. The intelligence gleaned plays an important role in preempting cyberattacks by identifying early signs of malicious activity.

It involves scanning dark web forums, marketplaces, and communication channels to detect data leaks, cybercriminal discussions, or planned attacks. Beyond identifying leaked data, dark web monitoring services can also provide insights into emerging threats, such as new hacking tools or malware being sold, or mentions of specific organizations as potential targets. This proactive approach allows organizations to identify potential security threats early and take measures to prevent further damage.

Cybersecurity teams can only take mitigating actions to reduce dark web risks if they can identify where on the dark web they are being targeted. Understanding their points of exposure and mitigating their cybersecurity risk will help organizations minimize the financial, reputational, and legal impact of cyberattacks.

Using ASM and dark web monitoring to mitigate cyber risk

By using ASM and dark web monitoring together, organizations can uncover a wide range of valuable information about their security posture and potential threats. ASM reveals what is exposed, providing a comprehensive view of an organization’s external assets, while dark web monitoring reveals who is targeting those assets and how they may be exploited. This combination enables organizations to not only identify risks, but also respond more effectively.

Book a demo today to make sure the cyber risks in your organization are mitigated and the door to cybercriminals is closed.