If your organization does not understand the data security risks that can cause vulnerabilities to your technology operations, you may not recognize cyberattacks until it’s too late. Vulnerabilities in data security can result in data breaches and cyberattacks, which often lead to sensitive data being compromised.
If customer or patient data is compromised by malicious actors, it can result in serious consequences for your business.
These consequences include damaged business reputations, lost customers and revenue, and legal ramifications when industry compliance requirements aren’t met.
These consequences are often extremely detrimental, resulting in fines and lost business that organizations may never recover from.
It is important to understand the types of data security risks and how to prevent them so you can avoid data breaches and cyberattacks, and the consequences that follow.
COEO understands how important reliable data security is and has helped secure the data for thousands of organizations to protect them from data breaches and cyberattacks.
By the end of this article, you will understand the types of data security risks that exist, how data risk management can help you avoid these risks, and whether data risk management would be beneficial for your organization.
The various types of data security risks
Data security risks of any kind can cause massive damage. However, there are three main types of data security risks your organization must watch out for.
Each risk presents a unique challenge, damages an organization's reputation, causes financial loss, and results in legal penalties. The three key types of data security risks and the way they play out include:
Theft
Data theft includes any action that results in unapproved access to sensitive data. Data theft can be broken down into three primary categories, including:
Hacking
Hacking is a type of data theft that takes place when a hacker gains unauthorized access to view, steal, or alter data.
Malware
Malicious software or malware penetrates an organization’s security to install and run on a network to facilitate unauthorized access to data. Malware is typically installed by employees accidentally when they click on malicious links that appear on websites or in emails.
Human error
Another form of theft occurs when a malicious actor exploits a security vulnerability resulting from an employee's action or inaction.
A misconfigured data storage system, data security, or network gear can result in exposed data, enabling unauthorized access to sensitive data.
Misuse of data
Misuse of data occurs when data is used or shared in unintended ways by employees and falls into the hands of malicious actors, resulting in stolen data. Some of the ways that data can be misused include:
Data leakage
Data leakage can be a result of sensitive data shared with unauthorized parties, such as outside partners or vendors, without knowing the sensitivity of the data enclosed.
Third-party access to data
Some organizations also provide data to third parties, such as data processing companies, to help with data management and storage.
However, these third parties’ can also struggle with data theft, loss, and misuse, which can result in high risk for your data.
Technical failures
While today’s network is so complex, so is the infrastructure handling the data. The infrastructure usually consists of a combination of hardware devices and software components; all interconnected through detailed configurations.
However, any technical failures can lead to vulnerabilities that pose a risk to data security and accessibility. Some common risks that lead to technical failures include:
Poor configuration
Data vulnerabilities can exist if elements within your data security operation are not properly configured to operate with each other.
An example of this might be leaving the network security with a default administrative password that malicious actors can use to access data.
Unpatched software
If your software requires a security patch and your team fails to patch it, it can create vulnerabilities that put your data at risk. Most required patches are needed as a result of well-known vulnerabilities that attract attackers.
System failure
Another risk that can result in technical failure exposing data is a system failure. Crashed servers, hardware faults, and failed storage devices are all examples of system failures that can happen when security risks exist.
Sensitive data requires resilient infrastructure such as redundant servers and storage devices capable of surviving hardware failures.
If you would like to speak with our team to learn more about data security risks or data risk management, or ask any questions you may have, you can schedule an appointment.
How data risk management can help prevent security risks
By now, you understand that there are many types of data security challenges that can put your data at risk. It is also important to understand how a solution like data risk management will help prevent these risks from happening.
Data risk management is the set of processes and workflows used to identify and mitigate risks and vulnerabilities within data security.
Data risk management consists of different elements such as risk assessment, data governance, risk mitigation strategies, and monitoring and reporting tools to protect data from the security risks discussed previously.
Is data risk management beneficial for your organization?
Now you understand the types of data security risks that cause vulnerabilities as well as what data risk management is and how it can help prevent these risks. However, it is also important to understand whether data risk management is something that should be set up and practiced in your organization.
If your organization houses sensitive patient or customer data, you may benefit from incorporating data risk management to avoid vulnerabilities that lead to data breaches and the ramifications that come with them.
Additionally, if your organization is concerned about data vulnerabilities or has identified vulnerabilities within your network or data, using data risk management policies may be beneficial to mitigate these vulnerabilities and prevent them in the future.
Data risk management may also be an appropriate process to help maintain compliance in industries with strict data compliance and regulations.
Determining whether data risk management is beneficial for your organization
Now you understand the data security risks that can leave your data vulnerable, what data risk management is, how it can help address these vulnerabilities, and whether data risk management is beneficial for your organization.
This will help you determine whether your organization should implement data risk management policies.
No organization can afford to have sensitive data accessible to malicious actors. Sensitive data being compromised can result in detrimental consequences including damaged business reputation, lost customers, and revenue.
To avoid these consequences, it is important to understand the types of data security risks that can occur and how to prevent them with data risk management.
COEO understands how important data security is and has helped thousands of organizations secure their data to prevent the data risks discussed in this article.
If you would like to speak with our team to learn more about data security risks or data risk management, or ask any questions you may have, you can schedule an appointment.
Now that you understand the data security risks and how data risk management can help prevent these risks, read this article to learn more about data risk management:
