Question

Highlight the correct answer(s) below:

Scenario: You are the risk management officer for a large financial services company. One of the
company's major clients, a multinational corporation, has just suffered a cyber attack that has
compromised their sensitive financial data. As a result, the company is concerned about the security of
their own data, and they have requested that your company take steps to mitigate the risk of similar
attacks.
Identify the potential risks that your company may face as a result of this cyber attack on the client.

Develop a risk management plan that addresses these risks and outlines the steps that your company
will take to mitigate them.
Implement the risk management plan, including measures such as increased network security, employee
training, and incident response procedures.

Monitor the effectiveness of the risk management plan and make adjustments as necessary to ensure
continued protection against cyber attacks.
Communicate regularly with the client to provide updates on the risk management efforts and any
changes in the risk profile.
Conduct regular reviews of the risk management plan to ensure that it remains up-to-date and effective
against emerging threats in the cybersecurity landscape.
Identify potential risk transfer options such as cyber insurance, and work with the client to evaluate the
feasibility of such options.

Answer 1

By implementing these risk management measures, your company can proactively mitigate the potential risks associated with the cyber attack on the client and enhance its overall cybersecurity posture.

Step-by-step explanation:

In response to the cyber attack on your client, your company may face several potential risks. These risks could include:

1. Reputation and brand damage: The cyber attack on your client may negatively impact your company's reputation and brand image if it is perceived as a failure to protect sensitive data.

2. Financial losses: Your company may incur financial losses due to legal liabilities, lawsuits, and potential loss of clients or business opportunities.

3. Data breach and loss: The cyber attack could expose your company's own sensitive financial data, leading to unauthorized access, data breaches, and potential loss of confidential information.

4. Operational disruptions: The attack may disrupt your company's operations, causing downtime, loss of productivity, and delays in delivering services to clients.

To mitigate these risks and protect against similar cyber attacks, your company should develop a comprehensive risk management plan. This plan should include the following steps:

1. Increased network security: Enhance the security measures in place to safeguard your company's IT infrastructure. This may involve implementing firewalls, intrusion detection systems, encryption protocols, and regular security updates.

2. Employee training: Provide cybersecurity awareness and training programs for all employees to educate them about potential threats, safe online practices, and how to identify and report suspicious activities.

3. Incident response procedures: Establish clear and well-defined procedures for detecting, responding to, and recovering from cyber incidents. This includes creating an incident response team, defining roles and responsibilities, and conducting regular drills and simulations to test the effectiveness of the response plan.

4. Continuous monitoring and adjustment: Regularly monitor the effectiveness of the risk management plan and make adjustments as necessary to address emerging threats and vulnerabilities. Stay up-to-date with the latest cybersecurity trends, technologies, and best practices to ensure ongoing protection.

5. Communication with the client: Maintain regular communication with the client to provide updates on the risk management efforts and any changes in the risk profile. This helps build trust, reassures the client of your commitment to cybersecurity, and allows for collaboration in addressing shared risks.

6. Review and updates: Conduct periodic reviews of the risk management plan to ensure its effectiveness against evolving cyber threats. Stay proactive by reviewing and updating security policies, procedures, and controls to align with industry standards and emerging risks.

7. Risk transfer options: Explore potential risk transfer options, such as cyber insurance, to mitigate the financial impact of a cyber attack. Work with the client to evaluate the feasibility and benefits of such options.