How due diligence and due care help manage cyber risk
Establishing sustainable trust in cybersecurity
Imagine this: A small business wakes up to discover its systems locked by ransomware. The hackers demand thousands in Bitcoin, and the company faces a choice - pay or lose access to everything. How did it get to this point? The answer is simple: they failed to manage their cyber risk effectively.
Two powerful strategies, due diligence and due care, can significantly reduce your exposure to cyber threats. They’re not just concepts; they’re essential steps in building a solid cybersecurity foundation.
Due Diligence: This is your discovery phase. It’s about identifying vulnerabilities and potential threats to your systems. Regular audits, risk assessments, and reviewing industry-specific attack trends all fall under this umbrella. Think of it as uncovering the weaknesses before attackers do.
Due Care: This is the action phase. Once risks are identified, due care involves implementing protective measures to address them. Updating software, securing networks, and training employees to recognize phishing scams are practical examples of due care in action.
Let’s look at a real-world scenario. A retail company handling sensitive credit card data decided to get serious about cybersecurity.
They started with a thorough risk assessment (due diligence) and discovered outdated software and employees using weak passwords.
Based on these findings, they introduced a range of protections, including stronger password policies, two-factor authentication, and company-wide training sessions (due care).
When a phishing scam targeted their industry months later, this company was unaffected, while others were scrambling to recover from stolen data and financial losses.
Compare this to organizations that neglect these practices - where breaches can cost millions of dollars, lead to regulatory fines, and destroy customer trust. The lesson is clear: managing your cyber risk with due diligence and due care is non-negotiable.
To safeguard your business, start integrating cybersecurity best practices today:
Conduct risk assessments regularly to identify potential vulnerabilities.
Monitor emerging threats specific to your industry and adjust your defenses accordingly.
Train your employees to recognize phishing emails and social engineering tactics.
Implement robust security measures, including firewalls, encryption, and secure password protocols.
Every step you take to address cyber risk strengthens your organization’s ability to withstand cyberattacks. By combining due diligence with due care, you’ll not only protect your business but also build trust with your customers and partners.
Take the first step now.
Your company’s cybersecurity depends on it.