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Cyber risk management: How to mitigate risks in 2025

By Academy Xi

February 13, 2025

What if a hacker got into your system right now? Would your data be safe, or would they steal customer info, lock your files, or shut everything down? A data breach can cost you money and a 5-9% drop in your brand value. In this article, we will show you how to use cyber risk management to prevent financial losses, reputational damage, and even legal penalties.

You don’t want to wait until it’s too late. In this guide, we will show you how to spot security risks, protect your business, and keep hackers out. Whether you run a small store or manage IT for a big company, these simple steps will help you stay safe and avoid cyber threats.

Let’s get started.

What is cybersecurity risk management?

Cybersecurity risk management is a process in which you protect your business from hackers, data breaches, and online threats before they happen. A cyberattack can steal customer data, shut down your systems, or cost you thousands in legal fines.

So, you proactively look for the security weaknesses in your system, evaluate how dangerous they are, and take action to fix them before attackers take advantage.

If you don’t have a plan to manage your cyber risks, hackers can:

Steal customer data, causing lawsuits and lost trust.
Lock your files with ransomware, forcing you to pay to get them back.
Drain your bank account through financial fraud.
Shut down your systems, stopping your business from running.

A great example of a security measure in action is Medical Alert Buyer’s Guide, which uses reCAPTCHA v3 to block spam and stop bots from abusing its forms. This means that only real users can submit information, keeping the site safe from automated attacks.

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The cybersecurity risk management process: 4-step guide

If you run a business, handle customer data, or rely on digital tools, you need a clear process to manage cybersecurity risks. Let’s break it down so you know what to do, why it matters, and how to apply it to your business.

Step 1: Identify cyber risks that could result in a data breach

Make a list of everything connected to your network, so you know which digital assets are at risk. This includes:

Computers, servers, and mobile devices used by employees.
Websites, apps, and online payment systems you manage.
Cloud storage services where you keep important files.
Customer databases and sensitive information your business handles.
Third-party tools or vendors that have access to your systems.

Now that you have a full list of assets, check where cybercriminals could break in. Use these key questions to gauge common weaknesses, so you can proactively protect your assets.

Are employees using easy passwords like “123456” ?
Do you have programs that have not been updated in months?
Could employees be tricked into clicking harmful links that steal their login info?
Does everyone in your company have access to all files, even when they don’t need them?
Are employees working from coffee shops or remote locations without a VPN?

The next step is to analyse past security incidents (if any). Past incidents show you what’s already been exploited and what needs to be fixed first. If your business has ever had a cybersecurity issue, what happened:

Did an employee click a phishing email?
Was there a data breach?
Did hackers attempt to access your systems?
Were any accounts compromised?

Look for patterns, if similar mistakes keep happening, you know where to focus your security improvements.

An easy way out is to onboard a cybersecurity manager to check your systems, networks, and devices for weak spots. They will look for outdated software, missing security updates, and poorly configured settings. They will also make sure your firewalls, antivirus, and security tools are working properly.

Lastly, these threats change constantly, so keep up with new scams, malware, and attack methods. Follow cybersecurity news, set up alerts, and train your employees through platforms like Academy Xi to recognise phishing emails.

Step 2: Assess the risks & prioritise the biggest threats

Now that you found the risks, you need to figure out which ones are the most dangerous. Not every threat is urgent. Some are minor annoyances, while others could shut down your entire business. To assess cyber risks, you need to answer the key questions:

How likely is this to happen?
How bad would it be if it happened?
Could it result in stolen customer data?
Would it cost you money or damage your reputation?
Do you already have security in place to prevent it?

Conduct a security test to get to know about risks and hidden vulnerabilities that were not obvious in your initial assessment. Run:

Try a penetration test: Hire ethical hackers to act like real attackers and see if they can get in. If they can, you’ll know exactly what to fix.
Run a vulnerability scan: Use security tools to find weak spots like outdated software or open access points.
Send fake phishing emails: See if employees fall for scams. If they do, train them before a real hacker tricks them.

The next step is to prioritise and take action.

2.1 Create a risk matrix to access & tackle cyber threats

Make sure to use a risk matrix in your cybersecurity risk management plan to quickly decide which threats need immediate action and which ones can wait for a while.

Risk Level	Example	Action Needed?
High	An outdated plugin on your website	Fix this immediately
Medium	An outdated plugin on your website	Fix it soon
Low	A minor bug in a tool that doesn’t store sensitive info	Monitor it

Once you determine the risks, check if your current security measures are strong enough to handle them. Ask yourself:

Do I have strong access controls (passwords, MFA, role-based permissions)?
Are my firewalls, antivirus, and encryption tools up to date?
Have my employees received security training to avoid phishing scams?

For example, if employees often fall for phishing emails, mark it as a high-risk issue that needs urgent attention. The solutions include training your employees and having stronger email security filters.

Additionally, if your industry has legal and regulatory requirements for cybersecurity like GDPR, HIPAA, or PCI-DSS. Ask:

Does my business meet all security compliance requirements?
Are there any gaps that could lead to legal trouble or fines?
Do I need to update security policies or complete security audits?

Make sure you do not Ignore compliance as it can result in penalties, lawsuits, and data breaches.

Step 3: Strengthen your defences with good control

Think of it like locking the doors and windows in your house, you want to make sure cybercriminals can’t easily break in.

Use these eight steps to improve your security measures and get more control over your data:

Keep strong passwords (having 12 characters with a mix of numbers, letters, and symbols). Use multi-factor authentication (MFA) for added security.
Update software & systems. Set updates to install automatically so you don’t have to worry about missing a security fix that could protect your business.
Install firewalls & security software to block harmful traffic. A firewall acts like a security guard, blocking dangerous activity before it reaches your network. Pair it with good antivirus software to catch malware and keep your systems safe from cyber threats.
Encrypt sensitive data like your customer information, important documents, and emails. If your data gets stolen but is encrypted, hackers can’t sell or leak it.
Train employees to spot phishing emails and avoid weak security practices. Teach your team how to recognise scams and test them with fake phishing emails so they know what to watch for.
Limit data access. Not everyone needs access to all company information. Give employees permission to see only what they need for their job, so if an account gets hacked, the damage is limited. Also, make sure to remove old employee accounts immediately when someone leaves the company.
Automate backups so they happen daily, store them and on a separate, and secure server. If ransomware hits and locks up your files, backups will save you to pay hackers to get your own data back.
Use SSL encryption for secure transactions. Secure Sockets Layer SSL prevents hackers from intercepting sensitive data, making transactions safer.

A great example is Pergola Kits USA. It protects customer data using SSL encryption but more importantly, it also communicates these security measures to users clearly. On their “Safe & Secure Shopping” page, they inform customers that their personal and credit card information is protected through the use of a firewall and SSL encryption.

Step 4: Review controls in cybersecurity risk management initiative

Collect data from past security events, failed login attempts, and unusual network activity to understand where breaches might occur. If one department experiences frequent phishing attempts, it may need extra security training or stronger email filters.

For example, if an audit shows multiple failed login attempts from a foreign location, you may need to block access from unapproved regions.

Similarly, more security tools don’t always mean better security. Review your cybersecurity stack to eliminate outdated, redundant, or underused tools that may slow down systems or create compatibility issues.

Most security breaches happen because of human mistakes, not just weak technology. 38% of experienced professionals who have been in the workforce for a long time face difficulties adapting to rapidly evolving workplace technology.

Without proper support, these challenges can cause security gaps. That is why regular training and ongoing reinforcement are essential to minimise risks. Check if employees follow security rules, like protecting customer data, avoiding phishing scams, and using secure file-sharing. If mistakes happen, train them and fix weak spots before hackers take advantage.

For example, send a fake phishing email to employees and track how many click the link or report it—then adjust training based on the results.

If less than 10% of employees click the link, your training is effective, but ongoing reinforcement is still needed.
If 10-20% fall for the scam, some employees are still at risk, and additional training is necessary.
If more than 20% of employees click the link, it’s alarming and they need immediate security awareness training.

5 key cyber risk management frameworks

If you handle customer data, process payments, or run a cloud-based service, the right cyber risk management framework will protect you from legal fines, financial losses. Read through and find the right framework for your business needs.

i . NIST Cybersecurity Framework (CSF)

NIST Cybersecurity Framework (CSF) is a great choice if you are a beginner in managing cybersecurity and want a solid plan without strict rules.

What it does:

It helps you build a cybersecurity plan using five key steps:

Identify: Find your security risks and weak spots.
Protect: Put safeguards in place (firewalls, MFA, encryption).
Detect: Set up monitoring to catch threats early.
Respond: Have a plan in place for cyberattacks.
Recover: Ensure your business can quickly bounce back after an attack.

Who should use it?

Businesses of any size that need a flexible cybersecurity plan.
Companies that don’t have strict compliance requirements but want better security.
IT teams that need a framework that works alongside other security standards.

ii. ISO/IEC 27001

ISO 27001 is ideal if you want recognition for your cybersecurity efforts. Use this framework to secure customer data, manage risks, and get an official certification that proves you take customer security very seriously.

What it does:

Guides you in setting up an Information Security Management System (ISMS).
Helps organisations manage cybersecurity risks proactively.
Provides a structured way to handle data security and compliance.

Who should use it?

Companies that handle sensitive customer data (finance, healthcare, IT).
Businesses that need to prove their security practices to clients.
Organisations that want ISO certification to meet industry requirements.

iii. CIS Controls (Center for Internet Security Controls)

CIS Controls is perfect if you want easy-to-follow cybersecurity best practices. It gives businesses a list of 18 security measures that reduce cyber risks fast.

What it does:

Helps you apply basic cybersecurity protections quickly.
Covers password management, MFA, software updates, and firewalls.
Prioritises security measures based on what stops most attacks.

Who should use it?

Small businesses that don’t have a full cybersecurity team.
Companies that want quick, practical security improvements.

iv. PCI-DSS (Payment Card Industry Data Security Standard)

If your business accepts, processes, or stores credit card payments, you must comply with PCI-DSS to protect customer payment data. This security standard reduces the risk of credit card fraud and data breaches.

What it does:

Helps you encrypt and securely store customer payment details.
Reduces credit card fraud with strong security controls.

Who should use it?

eCommerce stores, banks, and any business processing card payments.
Companies that store or transmit payment details online.
Organisations needing secure online checkout and transaction processing.

v. SOC 2 (System and Organisation Controls 2)

SOC 2 is a must if your business sells cloud services, SaaS products, or handles sensitive client data. It proves to your customers and business partners that your security practices meet high standards.

What it does:

Helps you build trust by showing strong security.
Prioritises security measures like data privacy and risk management.
You undergo a third-party security audit.

Who should use it?

Cloud-based businesses and SaaS companies.
IT vendors and service providers handling customer data.

Conclusion

Think about it: If an employee clicked on a phishing email right now, would your security stop the attack, or would hackers get into your system? The best way to protect yourself is to stay ahead of the threats, train your employees, and build strong security defenses.

If you’re not sure, head towards Academy Xi. Our expert-led cybersecurity training including our Cybersecurity Fundamentals Workshop and Cybersecurity for Leaders Workshop will help you spot cyber risks, prevent attacks, and secure your system before it’s too late. You’ll learn how to identify threats, stop phishing scams, and implement strong security policies that actually work. Book your call now to learn how to prevent attacks and secure your data.

FAQs

I. How to get cyber risk management certification?

Choose the cyber risk management certification based on your profession. If you work in IT risk, go for CRISC. If you manage security teams, take CISSP or choose ISO 27001 if you work in compliance and data protection. Then, take a training course through ISACA, (ISC)², or an accredited provider like Academy Xi. When you’re ready, pass the exam to get certified.

II. What are the roles of internal compliance and audit teams in risk management?

Internal compliance and audit teams make sure your company follows security policies and legal requirements. They check systems, train employees, and monitor security controls to prevent mistakes and cyber threats.

III. What are the critical capabilities for managing IT risk?

To effectively manage IT risk, you need strong tools, processes, and strategies to protect systems and data. Implement firewalls, encryption, and endpoint security to defend against cyberattacks. Lastly, have a clear response plan for cyber incidents. This includes detecting attacks, containing damage, recovering lost data, and preventing future breaches.

Academy Xi Blog

Cyber risk management: How to mitigate risks in 2025

By Academy Xi

What is cybersecurity risk management?

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Related posts

The cybersecurity risk management process: 4-step guide

Step 1: Identify cyber risks that could result in a data breach

Step 2: Assess the risks & prioritise the biggest threats

2.1 Create a risk matrix to access & tackle cyber threats

Step 3: Strengthen your defences with good control

Step 4: Review controls in cybersecurity risk management initiative

5 key cyber risk management frameworks

i . NIST Cybersecurity Framework (CSF)

What it does:

Who should use it?

ii. ISO/IEC 27001

What it does:

Who should use it?

iii. CIS Controls (Center for Internet Security Controls)

What it does:

Who should use it?

iv. PCI-DSS (Payment Card Industry Data Security Standard)

What it does:

Who should use it?

v. SOC 2 (System and Organisation Controls 2)

What it does:

Who should use it?

Conclusion

FAQs

I. How to get cyber risk management certification?

II. What are the roles of internal compliance and audit teams in risk management?

III. What are the critical capabilities for managing IT risk?

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