Risk management is a critical part of the development process, but it is often overlooked in today’s business world. A system of systems (SOS) is planned to deliver capabilities over time through incremental builds. As threats originate from different sources and can affect the system at different times, threat control must address all potential effects on the system, users, and stakeholders.
Identifying the key threats and mapping them to planned capabilities and dependent technologies is therefore crucial for successful control. In general, management can help companies mitigate negative effects from the actions they take. Identifying and managing threats is an integral part of decision-making for any business. Assessments are critical to the success of business continuity plans.
A company should conduct regular assessments so they can create a plan for dealing with unexpected incidents. If you’re looking for control of cybersecurity, click here to learn more. A business may face many types of threats, including cyber threats. Financial trading firms, for example, use threat control and avoidance methods to minimize the threat of financial losses.
There are four main approaches to this type of threat management:
- Risk Avoidance
Eliminate or withdraw from threats.
- Risk Mitigation
Taking actions that limit or optimize the impact of threats.
- Risk Sharing or Transfer
Contracting with third parties to assume the financial burden of threats.
- Risk Acceptance
Accepting the threat without taking any action
A formal version of this type of process is an excellent way to establish your expectations and set expectations for the vendor’s performance. You can also consider using the NIST Risk Management Framework to guide your selection process. It isn’t necessary but is definitely a feature most successful companies utilize.
Once you have established expectations for the control dealer, it is easier to set KPIs and track their progress. This process should begin early, as you’re likely to find other threats that you can’t manage on your own.
Keeping an Eye On… Financials
When selecting a dealer, keep in mind the importance of keeping an eye on their financials. Publicly traded companies are easy to find, but private companies will be happy to provide you with a financial summary upon request.
These reports provide valuable information about how stable the vendor is, as weak financials often translate to a weakened security program. Financial problems can lead to huge losses, and even fines if laws are broken. You may also want to consider running a background check on the company that provides the dealer’s services. Check for past bankruptcy, regulatory violations, and employee criminal convictions.
Also, look for the company’s reputation on social media. Finally, keep an eye on their insurance certificates to ensure they’re up to date. If you’re looking for a dealer that provides insurance for a fee, you’ll want to check their financials regularly.
Keeping an Eye On… Service Levels
Managing threats means monitoring your control vendor’s service levels. While a dealer’s service levels are important, they should be evaluated on a variety of criteria, including how important they are to your organization and the location of your data. You also should monitor your dealer’s financial strength and security controls. Make sure your management dealer is well-known for implementing the latest technology to protect your business.
Your vendors should be monitored regularly to reduce their threat. While a dedicated team may be enough to minimize issues from a merchant, you will want to consider outsourcing this function. Even if you do not plan on a risk management vendor, you can always monitor their service levels to ensure that your business is protected in the event of an outage. You can use social media handles to keep an eye on them, while monitoring Google alerts can provide you with the latest information.
Keeping an Eye On… Compliance With Data Privacy Laws
Keeping an eye on a merchant’s compliance with data privacy laws can help you minimize threats and protect your business. You should make sure to formalize the merchant selection process and insist on detailed proposals. This will allow you to compare different merchants side by side and evaluate their support for industry standards.
If you are unsure of how to keep an eye on a merchant, consider implementing a self-assessment questionnaire. You can search the Risk Management Law website here: www.uslegal.com/r/risk-management/ in order to craft more informed, specific questions. However, in order to reduce the chances of contracting a merchant who poses a threat to your business, you should first determine which merchants pose the highest threat to your business.
Due diligence is a process where firms evaluate the performance and compliance with regulatory requirements of vendors and rank them according to threat. To determine the threat of a merchant, prioritize your due diligence efforts. Start by evaluating the highest priced vendors first and then move to the lower priced merchants.