Cyber attacks will continue to be the biggest threat to European companies in 2024

Commerzbank announced an increase in cyberattacks last week and is stepping up measures to ward off such attacks.

4 March 2024

Commerzbank announced an increase in cyberattacks last week and is stepping up measures to ward off such attacks. At the Handelsblatt conference on banking supervision, it was emphasized that banks must pay greater attention to the security of their systems, especially in view of increasing digital threats. But it’s not just banks that are affected, Allianz lists cyber attacks as the number 1 risk for the European economy in its Risk Barometer for 2024.

But how should a company react to the increasing threat situation? Even if there is no such thing as total security, there are ways and strategies to deal with the issue and significantly reduce the risk. The magic word in this context is risk management. Below we would like to introduce you to why good risk management can protect your company and is mandatory in 2024.

  1. Early detection of risks: Effective risk management enables companies to identify potential weak points in their systems and processes at an early stage. Through regular risk assessments and reviews, potential points of attack can be identified and appropriate measures taken to eliminate or minimize them.
  2. Minimize risk: By implementing robust security measures and policies, your organization can reduce the risk of cyberattacks. This may include adopting advanced encryption technologies, updating security software, training employees on cybersecurity, or setting up firewalls.
  3. Regulatory Compliance: Stricter compliance processes ensure companies adhere to relevant cybersecurity rules and regulations. This can include compliance with industry-specific standards such as the European Banking Authority (EBA) or international standards such as ISO 27001. By meeting these requirements, your company will not only minimize the risk of fines or legal consequences, but also improve its overall security level.
  4. Crisis management: Well-thought-out risk management also includes strategies and plans to deal with cyberattacks and other security incidents. By developing emergency plans and regularly conducting crisis drills, your organization can ensure that in the event of an attack, you can respond quickly and appropriately to limit the damage and minimize the impact on your business and objectives.

Overall, improved risk management and stricter compliance processes can help your organization better respond to cybersecurity challenges and better protect your systems and data.

If you are hearing about risk management for the first time, we would like to give you a short checklist on how to set up a functioning risk management system:

  • First you have to set up a risk management system that is closely linked to the company’s goals and situation.
  • Identify in detail all risks that could endanger the company as a whole or its goals. It is important to record both external and internal risks.
  • Evaluate the identified risks based on the probability of occurrence and what impact this would have on your company.
  • Develop a strategy for how to react to the possible occurrence of the risks.
  • On this basis you define which risk can be accepted, avoided or at least reduced.
  • Finally, ensure that the risk assessment is continuously analyzed and updated in a transparent and comprehensible manner.