Ethical hackers are bound by a code of ethics and work within the legal framework, obtaining the necessary permissions and approvals before conducting any testing.
Because of this, ethical hackers are vital for businesses. They make it possible to find security flaws in an organization's systems and strengthen its defense capabilities. However, ethical hacking is not just about blindly exploiting weaknesses in a system. It is crucial to also carry out an extensive risk assessment before beginning an ethical hacking exercise.
Risk assessment analysis determines a cyber incident's likelihood, its impact, and the necessary strategies to mitigate it. Ethical hackers concentrate on the most impactful vulnerabilities by conducting a thorough risk analysis, which will assist organizations in making wise security expenditure decisions.
In this blog, we will explore the role of risk assessment in ethical hacking in 2023, why it is a critical component of any successful security program, and what it takes to do an analysis of this nature.
Our Story
Malicious hackers, also known as "black hat" hackers, use their skills to gain unauthorized access to systems and steal or destroy sensitive data.
As ethical or "white hat" hackers, we test all digital systems to find and report security vulnerabilities before malicious hackers can exploit them.
We do this by pentesting, and simulating a cyberattack on a computer system, network, web application, API, server, or other digital assets to identify and evaluate potential security weaknesses.
As we've seen previously, pentesting is part of an offensive security strategy and essential to risk analysis. It sets us apart from antivirus software and firewalls, among other defensive measures, which are mainly reactive and not preventive.
What is Risk Assessment?
Risk assessment is a crucial first step in developing a comprehensive security program, as it provides organizations with a clear understanding of the risks they face, helping them to prioritize the implementation of countermeasures. By regularly conducting risk assessments, organizations stay ahead of evolving threats to protect their assets.
This measure aims to identify and evaluate potential threats to an organization's assets, such as its systems, data, people, and to determine the likelihood and impact of these threats. The information obtained through risk assessment helps to prioritize the implementation of countermeasures to reduce the risk of a successful attack.
There are frameworks for conducting a cybersecurity risk assessment to ensure consistency and accuracy. These rules help protect sensitive information, meet legal requirements and help to promote accountability within organizations.
Change in place
ISO/IEC 27001, a widely recognized international standard for information security management systems (ISMS), is a significant reference for risk assessment procedures that systematically manage sensitive information to remain secure.
Also, NIST (National Institute of Standards and Technology) provides a comprehensive approach to managing cybersecurity risk, including guidelines for conducting a Cyber Risk Assessment.
Cybersecurity is a hot topic in the European Union (EU) agenda, with the institution taking impactful measures. As of January 16th 2023, the EU is implementing a new directive called NIS2, which replaces the NIS1 Directive in place since 2016. Countries and organizations have until October 2024 to fully implement it.
Some of the changes introduced in NIS2 compared to NIS1 include:
- Broader scope: Digital service providers, excluded from NIS1's coverage, are now included in NIS2's purview. This covers cloud computing services, search engines, and online markets.
- Cooperation and information sharing among member states and relevant stakeholders, such as cybersecurity agencies, regulatory agencies, and providers of essential services, is strengthened thanks to NIS2.
- Higher security standards: NIS2 introduces higher security standards, especially for providers of essential services. This covers the need for risk management, incident reporting, and cybersecurity precautions.
- Harmonization with other EU regulations: NIS2 is closely aligned with other EU regulations like the General Data Protection Regulation (GDPR) and the Cybersecurity Act to ensure consistency and prevent duplication.
Risk Assessment and the NIS2
Risk assessment is a critical component of the NIS2 Directive (Directive (EU) 2016/1148). By conducting a risk analysis to identify and evaluate the threats to the security of their network and information systems, operators of essential services and digital service providers are required under the Directive to take the necessary steps to manage and reduce those threats.
According to NIS2, regular risk assessments must be carried out and consider several factors, such as the services provided, the size and complexity of the network and information systems, and the potential impacts of a security incident. Risk evaluations must consider all relevant risks, including those brought on by internal and external causes like human mistakes, equipment malfunction, and external events like cyberattacks.
Operators of critical services and digital service providers must implement the proper organizational and technical controls to manage and reduce the identified risks based on the risk assessment findings. Access restrictions, encryption, backups, and incident response plans are a few examples of these precautions.
Operators must also disclose any severe occurrences to the appropriate national authorities, according to NIS2. This includes events that significantly compromise the security of networks and information systems, have a material adverse effect on the continuity of the essential service or digital service, or both.
Generally speaking, risk assessment is a crucial component of the NIS2 Directive and an instrument for guaranteeing the security and resilience of network and information systems throughout the European Union.Risk Assessment and the NIS2.
How to conduct a cybersecurity risk assessment?
Step 1
Define the scope of the assessment:
Identify the systems, networks, and data to include in the evaluation, as well as the objectives and desired outcomes.
Step 2
Identify assets and critical information:
Identify the systems, networks, and data to include in the evaluation, as well as the objectives and desired outcomes.
Step 3
Identify threats and vulnerabilities:
Identify the potential threats and vulnerabilities that could be used to compromise the assets and information.
Step 4
Evaluate risk:
Evaluate the likelihood and impact of each threat and vulnerability, considering existing controls and mitigation strategies.
Step 5
Prioritize mitigation strategies:
Prioritize the mitigation strategies based on the likelihood and impact on the business and the resources available to implement them.
Step 6
Develop a risk management plan:
Develop a plan that outlines the mitigation strategies and the responsibilities for implementation.
Step 7
Continuously monitor and updates:
Continuously monitor and update the risk management plan to address changing threats and vulnerabilities.
CONCLUSION
Risk assessment is part of a comprehensive security program and an essential component of a defensive track.
By regularly conducting ethical hacking assessments, organizations can stay ahead of evolving threats and better protect their systems and data.
By complying with the NIS2 Directive, businesses can enhance their cybersecurity posture, demonstrate their commitment to protecting their customers' data, and comply with regulatory requirements. Risk assessment analysis and compliance with the NIS2 Directive are crucial for building stakeholder trust, enhancing brand reputation, and avoiding costly data breaches and regulatory penalties.
Find out more about ethical hacking on our website.
