Businesses and consumers are adopting digital solutions at a rapid pace. This has resulted in the term digital transformation becoming common in the business world. Digital transformation is the process of utilizing new technologies to build new or unique business models, processes, and ways of interacting with employees and customer experience. It encompasses everything, from artificial intelligence, machine learning, supply chain, and automating manual processes to improving user experiences. While digital transformation has generated new opportunities, it has created new risks and threats.
The digital space is full of cybersecurity risks, including data breaches, ransomware, and phishing, just to mention a few. So, as part of your digital transformation strategy, you must consider how you will manage and mitigate cybersecurity threats. Join us as we assess the cybersecurity risks of digital transformation and strategies for managing and mitigating threats.
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Security Risks of Digital Transformation
Here are some top security risks of digital transformation:
Digital Transformation Increases Exposure to Cyberattacks
Digital transformation involves moving more business data and processes online. Doing so exposes these assets to new risks. For instance, a digital transformation initiative may involve moving to the cloud, using AI tools, the Internet of Things (IoT), and big data analytics.
These technological solutions expose your digital assets to a new threat landscape. As a result, it increases exposure to cyber attackers who leverage the connections of these programs to access the network infrastructure and exploit any weaknesses they find.
Increase Reliance on Third-Party Service Providers
Digital transformation involves adopting new tools and technologies to help you conduct your business operations. This means that you depend more on third-party providers to execute your business functions. For instance, employees will start depending on cloud vendors and other software-as-a-service (SaaS) providers to perform their jobs.
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Any vulnerabilities in third-party systems make your digital products vulnerable. For example, a breach or denial-of-service attack on third-party systems can have consequences on your business aspects that depend on those systems and services.
According to a survey by Ponemon Institute, 55% of the respondents who adopted digital transformation indicated that at least of the breaches they experienced originated from a third party. This introduces new concerns regarding how to manage cybersecurity risks in the supply chain.
Rushed Digital Transformation Initiatives May Not Secure What Matters Most
During the digital transformation journey, a company introduces numerous unique tools for employees to collaborate and share information with each other and customers. Unfortunately, online collaboration tools are often challenging to manage, which may increase the risk of costly human errors. This may increase the probability of a security breach or exposure of sensitive data.
Rushed digital transformation initiatives may lead to inadequate security budgets, leaving your digital systems vulnerable. Therefore, while digital transformation may significantly improve efficiency, it must be done carefully. All loopholes must be fixed and the security of every digital asset considered.
Difficulties in Ensuring Cloud Security
Securing the cloud environment where you will store your data and application is crucial. Unlike traditional data centers, the cloud is often accessible to many people. This attracts hackers and other individuals with malicious intentions.
However, securing the cloud environment is often challenging. Also, while cloud security tools are constantly improving, they often require regular updates and monitoring. This means that you will need to invest more in IT.
Strategies for Managing and Mitigating Digital Transformation Threats
Here are some strategies to consider to effectively manage digital transformation threats:
1. Build A Comprehensive Cybersecurity Strategy
Start by developing a clear and detailed cybersecurity strategy that aligns with your company’s digital transformation goals. This strategy should outline various issues related to cybersecurity, including the following:
- Potential vulnerabilities and threats,
- Risk management processes, and
- Incident response procedures.
Creating a cybersecurity strategy will provide a blueprint for protecting your digital assets throughout the digital transformation journey.
2. Perform Thorough Risk Assessment
Before you embark on digital transformation, it is crucial to perform a thorough risk assessment. This will help you identify the potential cybersecurity risks and determine the best measures to mitigate them.
Classify the identified risks based on their severity and the likelihood of occurring. This assessment and classification will help you prioritize your mitigation efforts.
3. Implement a Robust Security Framework
A security framework outlines the policies and procedures for securing your digital assets. Build a robust cybersecurity framework following the best practices outlined by various standards such as NIST and ISO 27001.
Your security framework should cover all aspects of the digital transformation, including user access controls, data, applications, and infrastructure. This will help protect these systems from potential attacks.
4. Prioritize Employee Training and Awareness
Digital transformation involves the intensive use of technology to perform business functions. If employees are unaware of the security risks, policies, and procedures, they can perform actions that can trigger attacks on various digital systems.
Therefore, you should educate your employees about cybersecurity risks and best practices. This will prevent them from making mistakes that may trigger cyberattacks.
What’s more, you should make security training and awareness a part of your digital transformation strategy. Consider covering cybersecurity topics, such as data handling, phishing, and strong password policies. This will encourage a security-first culture and empower employees with the necessary tools to detect and report potential security incidents.
Monitor and Detect Security Threats
Deploy a robust cybersecurity monitoring system to help you detect and respond to potential security threats in real-time. Consider implementing monitoring systems such as:
- Threat intelligence platforms,
- Intrusion detection and prevention systems, and
- Security information and event management or SIEM solutions.
These systems help you gain insights into your digital environment, enabling you to detect suspicious activities.
Engage Third-Party Experts
What if you don’t have an experienced in-house team to assess cybersecurity risks and devise possible mitigation solutions? That’s where an expert third-party digital transformation service provider like Indium Software can save the day.
Third-party experts have the expertise and qualified professionals to perform regular audits, penetration testing, and vulnerability assessments. These experts can offer an unbiased perspective on your security posture. Also, they can recommend improvements to effectively mitigate cybersecurity risks.
Final Thoughts
Digital transformation involves moving more assets online, including data and applications. While it opens up businesses to numerous opportunities, it exposes them to a new landscape of cybersecurity risks. Adopting the discussed strategies can help you effectively manage and mitigate risks related to digital transformation. But remember, cybersecurity is an ongoing process – so, proactive measures are crucial to safeguarding your digital assets throughout the digital transformation journey.
Are struggling to achieve your digital transformation goals? Indium Software is here to help! With over 33 years of experience in delivering digital solutions, we can help you critically assess the cyber security risks of digital transformation. Contact us for more information.
