IT Risk Management: Best Practices to Mitigate Security Risks

Effective IT risk management is crucial for any business that relies on technology for its daily operations. Every IT asset, whether a server application, cloud service, or IoT device, is always at the forefront of threats ranging from human error and software failures to cyberattacks. A single security incident can prove to be very costly; for example, Morgan Lewis reports that the average data breach in the U.S. now costs nearly $9.48 million. Therefore, it is vital that organizations proactively identify and mitigate their information risks.

This blog will explain what information risk and IT risk management are, outline risk assessment and management processes, and highlight best practices. We’ll also show how Atlas Systems’ solutions (such as the ComplyScore® platform) help automate risk monitoring and vendor risk management to keep enterprises secure.

What is Information Risk?

Information risk refers to the potential for damage or financial loss resulting from the handling, processing, storage, and transfer of data, including digital and physical assets, as well as intellectual property. These risks can stem from accidental incidents or be deliberately created by threat actors.

Information risk is typically analyzed using the 'CIA triad' framework:

Confidentiality: Unauthorized access to sensitive information.

Integrity: The improper modification or deletion of data.

Availability: The unavailability of systems or data, such as due to outages or ransomware attacks.

Types of IT Risks

There are several key types of IT risks that organizations face, and understanding them is essential for developing targeted mitigation strategies. These risks typically include:

Cybersecurity Risks: These involve malicious actors attempting to breach systems and steal data, including ransomware, phishing attacks, malware, DDoS attacks, and credential theft.

Operational Risks: Risks arising from issues such as system failures, software bugs, or incorrect configurations that can cause downtime or errors in business processes.

Compliance Risks: These relate to the violation of data protection laws, such as the GDPR, HIPAA, or CCPA, resulting in fines and reputational damage.

Strategic Risks: Poor technology decisions, such as relying too heavily on a single vendor or selecting unsupported software, can have long-term negative consequences for the business.

Human Factor Risks: Mistakes, negligence, or malicious behavior within the organization, such as improper system configurations or weak password practices.

Environmental Risks: These include natural disasters like floods, fires, or earthquakes that can destroy physical infrastructure and data.

By clearly defining these risks, businesses can proactively plan for and mitigate potential threats that could jeopardize their operations.

What is IT Risk Management?

IT risk management is the process of identifying, assessing, and mitigating risks that threaten an organization’s IT assets and information systems. This includes not just cybersecurity threats but also operational issues (like software failures), compliance risks, and third-party/vendor risks.

In practice, IT risk management involves:

• Inventorying IT assets (hardware, software, and data repositories) and assessing their value or sensitivity.
• Identifying threats and vulnerabilities, including both external (cyberattacks, natural disasters) and internal risks (human error, system flaws).
• Evaluating risk levels based on the likelihood and potential impact on critical assets.
• Implementing security controls (firewalls, encryption, vendor oversight) to mitigate risks.
• Continuous monitoring of systems and updating the risk plan as new threats emerge.

By systematically covering these areas, IT risk management ensures an organization can withstand cyber threats, operational disruptions, and compliance breaches while maintaining a secure and resilient IT infrastructure.

How IT Risk Management Protects Your Business

IT risk management is not just about protecting against specific threats, but also ensuring the long-term security and continuity of your business. In a world where cyberattacks, data breaches, and system failures are increasingly common, a proactive IT risk management strategy is essential for safeguarding both operations and reputation.

A well-defined IT risk management strategy helps your organization by:

• Detecting issues early, preventing small problems from becoming major disruptions.
• Minimizing downtime by ensuring business continuity plans are in place, even in the face of unexpected incidents.
• Maintaining compliance with ever-evolving regulations (GDPR, HIPAA) to avoid fines and reputational damage.
• Building trust with customers, employees, and partners by demonstrating a commitment to security and operational integrity.
• Prioritizing resource allocation to areas that matter most, like multi-factor authentication, employee training, or cloud security, based on identified risks.

IT risk management also fosters a culture of resilience and adaptability, helping organizations safely embrace innovation (like cloud platforms or AI) while minimizing new risks.

This discipline is crucial because by identifying and analyzing potential vulnerabilities within an enterprise IT network, organizations can better prepare for cyberattacks and minimize their impact should such events occur. The procedures and policies implemented through an IT risk management program can guide future decision-making regarding risk control while aligning with company goals.

For example, a well-maintained risk register functions like an encyclopedia of potential IT problems ranging from cyberattacks and outages to system failures. It helps security teams track these risks over time, identify patterns, and make smarter, data-driven decisions about where to focus their efforts.

What the Data Tells Us

According to IBM’s Cost of a Data Breach Report 2024:

• The global average cost of a breach reached $4.88 million
• In the U.S., that figure is $9.36 million.
• In healthcare, it climbs to $9.77 million - the highest across all sectors.

These numbers are more than just stats, they’re reminders of how expensive preventable risks can be. Often, the root causes are basic: unpatched servers, weak access controls, or outdated software.

But there’s good news. Companies that adopted AI-powered tools and automated response systems saved an average of $2.2 million per breach and resolved incidents much faster.

What Happens When You Don’t Prioritize IT Risk

Real-world examples remind us how serious this can get:

• In July 2024, a global IT outage caused by a software update error disrupted major industries. Delta Air Lines alone reported over $500 million in losses due to cancelled flights and delays.
• Earlier that year, engineering firm Arup lost £25 million to a deep fake voice scam. Attackers used AI to mimic a senior executive and trick internal teams highlighting just how sophisticated cyberthreats have become.

These incidents show that even the most prepared companies can be vulnerable and that ignoring IT risk can lead to high-stakes consequences.

Without a clear approach to IT risk management, organizations are left in a reactive mode, fighting fires instead of preventing them. But with the right strategy, you can reduce risk, meet compliance goals, and safeguard your operations from unexpected setbacks.

IT risk management is your foundation for doing business safely in an unpredictable digital world..

Cost of Poor IT Risk Management

Failing to manage IT risk has real consequences both financial and operational. Here’s what’s at stake:

What is Risk Assessment in IT Security?  

IT risk assessment is a critical step in the broader IT risk management process. It’s all about identifying and evaluating risks to your organization’s information systems, so you can understand where potential threats and vulnerabilities lie and gauge how much damage they could cause. In short, it’s about being proactive in safeguarding your business.

Here’s how a typical IT risk assessment is carried out:

1. Inventorying assets and data  

The first step is to catalogue all the critical hardware, software, cloud services, and sensitive data your organization uses or stores. This includes everything from servers and workstations to customer data and financial records.

2. Identifying threats and vulnerabilities  

For each asset, you need to list potential threats (like cyberattacks, insider errors, or natural disasters) and vulnerabilities (such as missing patches, weak passwords, or misconfigurations). This helps you get a full picture of what could go wrong.

3. Analysing likelihood and impact  

Once threats and vulnerabilities are identified, the next step is to estimate how likely each threat is to occur and what the potential damage would be. You can imagine this as calculating a risk score, where you multiply likelihood by impact.This helps you prioritize which risks need your attention first.

4. Prioritizing risks  

After analysing the threats, it’s time to rank risks by their severity. Focus on high-risk areas, things like critical customer data that’s at risk of being breached will need immediate action.

5. Documenting results  

All findings need to be documented in a risk register or report. This includes your risk ratings, identified vulnerabilities, and proposed mitigation plans. Think of this as a reference guide for action moving forward.

6. Planning mitigations  

For each risk, you’ll decide how to handle it. Should you mitigate it (e.g., patch a vulnerability or buy cyber insurance)? Or accept it because the risk is low? This is the part of the process where you decide how best to treat each identified risk.

7. Continuous monitoring  

Risk assessment isn’t a one-time event. IT environments change constantly, so you need to monitor risks regularly to identify new vulnerabilities and update mitigation plans as necessary.

The Role of Risk Assessment in IT Risk Management  

In the world of IT risk management, risk assessment is the cornerstone. As SolarWinds explains, “IT risk assessment is simply a step in the risk management process. Performing regular assessments helps you identify areas of risk you can mitigate.” This is where the groundwork for risk management starts—helping you understand where you’re most vulnerable so you can make better decisions about how to protect your organization.

According to AuditBoard, risk assessments offer a comprehensive view of an organization’s security risk posture, helping businesses identify their weaknesses and take necessary steps to mitigate risks.

When conducting IT risk assessments, organizations can choose between qualitative, quantitative, or hybrid approaches. Let’s take a quick look at each one:

Qualitative Risk Assessment  

This method assesses the likelihood and impact of risks using non-numerical categories such as high, medium, and low. It provides a straightforward approach, particularly when dealing with human factors or situations where precise numbers are difficult to determine.

Quantitative Risk Assessment  

This method uses a numerical approach to assess risk, employing percentages and financial data to estimate the likelihood and potential financial impact of each risk. For instance, you might quantify the cost of a breach or a downtime event in monetary terms. This provides a clear financial perspective, which can be valuable when justifying security investments to management.

Hybrid Risk Assessment  

A hybrid approach combines both qualitative and quantitative methods, leveraging the strengths of each. This gives you a well-rounded view of the risks, combining the human and operational insights of qualitative assessments with the financial clarity of quantitative ones.

While quantitative risk assessments provide concrete numbers, they come with challenges. IT risks are often complex, and it can be difficult to assign exact monetary values to every potential risk. For example, reputational damage or the loss of customer trust is tough to measure in dollars.

As a result, many organizations prefer qualitative methods. However, quantitative data plays a crucial role in justifying security investments and calculating ROI. This highlights the growing demand for standardized quantitative risk assessment tools, which enable clearer and more consistent measurement and reporting of IT risks.

IT Risk Management Best Practices for a Safer, Smarter Business

Effective IT risk management goes beyond merely ticking boxes. It’s about cultivating a culture of security, resilience, and ongoing improvement. Whether you're developing your strategy from scratch or refining an existing one, these best practices will keep you ahead of emerging threats.

1. Monitor everything, all the time

Set up real-time monitoring across your systems, networks, devices, cloud storage, and endpoints. Misconfigurations, especially in tools like AWS S3, can expose sensitive data quickly. Tools like SIEMs and vulnerability scanners are your first line of defense. As SecurityScorecard puts it, constant visibility helps catch threats before they become disasters.

2. Don’t Ignore vendor and supply chain risks

Your partners’ security posture is critical, a breach on their end can have a direct impact on your organization. Leverage vendor assessments and tools like ComplyScore® to evaluate risks and enforce cybersecurity standards in contracts. Treat your supply chain as an integral part of your security ecosystem.

3. Plan for the worst before it happens

A strong incident response plan outlines who does what during a crisis. Run drills, test your processes, and make sure everyone knows how to act. The faster your team responds, the less damage you’ll face.

4. Train people, not just systems

Human error is still a leading cause of cyber incidents. Train employees regularly on phishing, safe practices, and reporting suspicious activity. A security-aware team is one of your most cost-effective defenses.

5. Strengthen with managed services

Not every business can cover 24/7 monitoring in-house. Managed security services can fill those gaps, patching systems, responding to alerts, and enforcing compliance while your internal team stays focused.

6. Improve, always

Threats evolve. So should your strategy. Review your risk management approach regularly, learn from incidents, and adapt based on new tools, standards (like NIST RMF or ISO 27005), and business changes.

By combining solid processes with ongoing improvement, your IT risk management program can protect what matters most, your data, your people, and your reputation.

How Atlas Systems Enhances IT Risk Management  

At Atlas Systems, we understand the complexities that organizations face in effectively managing IT risks. Our comprehensive solutions simplify the IT risk management process, offering the necessary tools and insights to maintain a strong security posture and ensure continuous compliance. We adopt a structured three-step approach to cybersecurity: Assess, Enable, and Manage.

Assess: Building a strong security foundation  

In partnership with Tenable, Atlas Systems provides a range of evaluations to assess a company's cybersecurity posture. By identifying vulnerabilities in applications, websites, and storage, we tailor a security program that best fits your organization. Our Risk Assessment solution helps safeguard IT assets and establishes the foundation for custom, data-driven security strategies.

Enable: Proactive cyber protection  

To enhance protection, Atlas deploys advanced threat detection tools and refines incident response protocols. This ensures your organization is equipped to handle potential security incidents swiftly, minimizing risk and damage. By leveraging AI-powered cybersecurity tools, we use real-time threat intelligence to detect vulnerabilities before they can cause harm.

Manage: Continuous risk monitoring  

Atlas offers a 24/7 Security Operations Center (SOC) to continuously monitor and manage your IT environment. We provide real-time monitoring, regular security reporting, and adherence to industry standards, ensuring that your defenses remain robust and adaptable. Our Risk Monitoring and Mitigation solution offers ongoing vigilance to protect your business from emerging threats.

ComplyScore® by Atlas Systems: Your Partner in IT Risk Management  

Atlas Systems' flagship platform, ComplyScore®, is designed to meet the diverse needs of IT risk management, enabling organizations to:

• Automate risk assessments: ComplyScore® automates the risk assessment lifecycle from asset identification to vulnerability management, reducing manual effort and human error.
• Centralize risk data: Gain real-time visibility of your organization’s risk posture through a unified dashboard that aggregates risk data and mitigation strategies.
• Streamline compliance: ComplyScore® seamlessly integrates with frameworks like GDPR, HIPAA, and ISO 27001, making regulatory compliance easier to manage.
• Enhance incident management: By linking risks to potential incidents, ComplyScore® helps organizations react promptly to security breaches or system failures.
• Vendor risk management: Extend risk management to your supply chain by assessing and mitigating third-party vendor risks.
• Ongoing monitoring: ComplyScore® offers continuous monitoring, alerts, and reporting to help organizations maintain an adaptive IT risk management strategy.

Atlas Systems also offers a suite of cybersecurity solutions to help mitigate IT risks:

• Managed Detection and Response (MDR): Our MDR service ensures continuous monitoring and rapid threat detection using AI-powered tools.
• Cloud and API security: Protects cloud environments and API endpoints from unauthorized access, data breaches, and other cyber threats.
• Application security: Delivers robust application security services designed to protect your software from common vulnerabilities such as SQL injection, cross-site scripting (XSS), and other web-based attacks, ensuring the integrity and safety of your applications throughout their lifecycle.
• Identity and Access Management (IAM): Establishes strong access control measures and real-time monitoring to protect sensitive data.
• Penetration testing: We simulate cyberattacks to evaluate your security defences and uncover vulnerabilities before they are exploited.

By leveraging ComplyScore® and Atlas Systems' extensive suite of cybersecurity services, organizations can transition from reactive to proactive IT risk management, effectively reducing vulnerabilities, ensuring compliance, and strengthening their overall digital resilience.

FAQs

What are the major IT risks faced by companies today?

IT risks encompass a broad range of threats, including cybersecurity vulnerabilities (such as ransomware and phishing), operational weaknesses (like software bugs and hardware failures), non-compliance with regulations (such as breaches of GDPR and HIPAA), human errors (like employee mistakes and insider threats), and external environmental threats (such as natural disasters). These risks can lead to system outages, unauthorized data access, legal consequences, and damage to the organization’s operational effectiveness and corporate reputation.

How does IT risk management differ from cybersecurity?

Cybersecurity focuses on protecting digital infrastructure from cyberattacks, while IT risk management takes a broader approach, addressing all types of risks, including cybersecurity, operational, regulatory, supplier, and environmental risks. Cybersecurity is a vital component of a comprehensive IT risk management framework.

Why is vendor IT risk important?

Vendor IT risk is critical because unsecured third-party suppliers can act as entry points for cyber threats. A data breach at a vendor can jeopardize sensitive information, disrupt business operations, and harm your reputation. Assessing vendor security is essential for mitigating these risks.

What tools are used in IT risk assessments?

IT risk assessments typically rely on specialized tools such as RiskWatch and RiskLens, alongside tools like Nessus for vulnerability scanning, Splunk for SIEM (Security Information and Event Management), Kali Linux for penetration testing, and ComplyScore for vendor risk management. These tools help detect, assess, and reduce potential threats.