As of late 2021, cyber security threats are at an all-time high, and their number is increasing. In fact, reports from cyber insurance carriers say that incident-related claims have increased by 486% since 2018. Most of these claims are related to ransomware, while the average cost of a data breach in the USA has risen to $8.6 million.
However, the numbers are not looking to drop in the following years too, unless companies start to apply modern solutions to improve their cyber security. One of the most successful ways to manage cyber risks is by risk modeling.
Cyber security risk modeling is a process of creating an array of possible scenarios while quantifying the outcome of each scenario in case it ever occurs. When playing out these scenarios, it is important to assess the severity of each one of them and quantify them in a way that they apply specifically to your organization. The idea of risk modeling is to gain insight on which risks are the most severe and most likely to be realized. This information can later be very useful for the decision-making process and help you focus your investments wisely.
How is Cyber Security Modeling Changing Risk Management?
Just like almost all business activities nowadays, security modeling can be drastically improved by making use of artificial intelligence. AI has a great impact on every aspect of many businesses, including marketing, customer service, and security. Cyber security risk modeling heavily relies on AI to recognize patterns and learn from past experiences. Moreover, with the help of machine learning, incident response times can be minimized and minutest behaviors of malware or ransomware attacks can be detected before they even enter the system.
AI has a great impact on risk management, as it allows you to identify new and hidden risks, as well as assess them more accurately. The approach can also provide you with a whole new way of managing risks and offer you a better way of monitoring them. By utilizing AI security modeling tools, the efficiency of risk management in your organization can be significantly improved. With the help of these tools, you can simplify the business processes and use your company’s resources more effectively.
The Benefits and Challenges of Using an AI-Powered Risk Management Platform
Your organization could gain a lot by using an AI-powered risk management platform. Some of the main benefits you can expect to see include:
- Threat intelligence evaluation.
- Management of security events.
- Detection of fraud.
- Employee workforce risk reduction.
- Data classification and monitoring.
However, besides the useful features, AI risk management platforms come with some challenges too. The main one is the financial aspect. Processing large amounts of data can be very costly, even with cloud-native services. Furthermore, the privacy aspect needs to be considered too.
When using AI and machine intelligence, you need to take data protection measures like encryption, transit security, tokenization, and obfuscation. Even though most cloud storage services provide data controls, specialized AI and other services like Kovrr.com can give you a much larger array of options.
The Future of AI in Risk Management
According to many experts in the field, AI is considered to be a game-changer in risk management. With the continuous improvement of compliance and risk management processes and systems, cloud-based AI, and machine learning services become more prevalent.
This will alleviate all of the restrictions manual risk management and analysis had in the past. By using the ability to analyze a large amount of data through machine learning, we can now make analysis deeper than ever before. This will result in better analytical capabilities in risk management and compliance and help analysts make more informed decisions.
Artificial intelligence and machine learning are on the rise, and it is time to start utilizing them for your benefit. These are quite powerful tools and useful technologies that can define our future, so it is best to get to know them and understand the business opportunities they offer. With their help, you can greatly improve the decision-making processes in your organization. By understanding the impact they can have on your risk management, you can assess the risks and contribute valuable information to your business.