Partnership to help organisations manage financial exposure to cyber risk
RSM Australia has partnered with X-Analytics to assess the cyber risk an organisation carries in clear monetary terms. Amidst increasing cyberthreats and discussion that board members may soon be held personally liable for cyberattacks, the ability to clearly assess cyber risk in this way is essential to help organisations manage that cyber risk appropriately, including allocating resources effectively.
X-Analytics uses advanced data science to assess risk based on the external cyberthreat landscape. This capability, combined with RSM Australia’s consulting offerings, provides a complete, turnkey solution to help organisations accurately assess the financial risk they face in terms of cybersecurity.
Ashwin Pal, partner, RSM Australia, said broadly speaking, making boards responsible for cyberattacks and breaches will drive further action in this critical area.
“The recent spate of high profile cyberattacks demonstrates that boards, although becoming more aware, need to do more to understand and mitigate cyber risk. It’s important to ensure that any legislation that is developed drives right behaviours, rather than simply punishing those who fall victim to attacks.”
While larger enterprises tend to manage risk well, others are still struggling to understand the risk they face. Without that understanding, it can be challenging to allocate resources to cybersecurity. These organisations risk over-investing in cybersecurity measures or, alternatively, failing to protect their organisation sufficiently. Getting this equation right will help organisations manage costs while maintaining an acceptable cybersecurity posture.
RSM Australia will use X-Analytics financial exposure outputs to help clients understand their key risks based on the threats most likely to cause financial impact and develop risk mitigation plans accordingly. This will help clients understand which gaps are the most serious and how much risk they expose clients to in monetary terms. RSM Australia will then help clients understand whether the risk is too high and, if so, understand how to mitigate that risk or even transfer it via cyber insurance.
Ashwin Pal said, “Any effective risk management plan includes understanding which risks to accept, mitigate and transfer. Our new service offering takes clients through this journey with a keen eye towards prioritised risk migration planning and risk transfer optimisation.”
X-Analytics delivers financial cyber risk exposure analysis including comprehensive cybersecurity return on investment analysis. This can dramatically streamline and improve the process of gaining board approval for cybersecurity initiatives, since the correlation between investment and risk reduction is clear and indisputable.
“The current threat landscape and cyberattacks show that something needs to change as organisations are losing the fight against cyberattackers. Without clearly understanding the risk in monetary terms and getting boards and executives to act, Australian organisations will simply maintain the status quo. By delivering our new cyber risk service, RSM Australia will be able to help clients bring cyber risks down, reduce the impact of cyberattacks, and lower the cost of protecting the business.
“Boards will also benefit from the clearer understanding of cyber risk and costs. As this service from RSM Australia and X-Analytics helps drive the right behaviours, bringing cyber risk down, organisations may begin discussing their risk more openly, because it will become a competitive advantage and a differentiator.
“It will also help organisations demonstrate their viability as suppliers in a climate where organisations are more aware of the risk posed by their supply chain partners. Simply being able understand the financial exposure to those risk with accuracy and precision will change the game for Australian organisations in managing cyber risk effectively.”
