The mounting cybersecurity threats within the public sector have prompted a parallel rise in the role of audits to counteract these risks. Given the dynamic range of attacks and the consequent evolution of threat actors, the strategies to counter them must also adapt. In this scenario, your public sector audit team emerges as an indispensable shield against cyber crimes.
Diligent, a UK-based governance company, recently delved into what public sector should know about cyber risk assessments.
Between March 2022 and March 2023, a concerning trend emerged. The IBM Cost of a Data Breach Report 2023 highlighted that public sector organisations bore the brunt of data breaches with an average cost of $2.6m. The education sector experienced an even more significant blow with costs soaring to a staggering $3.6m.
Cybersecurity isn’t merely the prerogative of your security or IT division. The ripple effects span across all departments within an organisation. A consolidated risk language understood by all can equip auditors to evaluate the robustness of your cybersecurity initiatives more effectively, offering a clear snapshot of your organisation’s stance.
Cyber risk assessments prove pivotal to determine a baseline for risks, compliance, and data integrity. But, why are they vital for the public sector? The answer lies in several key reasons:
- The wave of digital transformation has swept government agencies into its current, making them more dependent on technology to facilitate services, safeguard sensitive data, and maintain critical infrastructures. This transition has expanded their vulnerability to a myriad of cyber threats.
- Data sensitivity: Public sector organisations are custodians of a plethora of sensitive citizen data. Compromising such data can unleash a chain of repercussions like identity theft, fraud, and massive privacy issues.
- The pillars of national security rest upon government agencies. Any cyber-attack on these entities could destabilise critical infrastructures, compromise defence mechanisms, and even hinder law enforcement operations.
- The aftermath of cyber incidents can be devastating. Service disruptions can sever citizens’ access to vital services and erode public trust.
- Regulatory compliance mandates cybersecurity measures for public sector entities. Non-compliance can invite legal ramifications and tarnish their reputation.
- Economic aftershocks of cyber incidents can exhaust public coffers with escalating remediation costs and legal expenses.
- To retain public trust, it’s imperative for government entities to bolster cybersecurity measures.
- With the increasing financial ramifications of cyber incidents, public sector organisations are veering towards cyber insurance. Apt risk assessments are key to decide on coverage needs and premium rates.
- Accountability and transparency are non-negotiable for government entities. Displaying a proactive approach in pinpointing and mitigating cyber risks can help them meet these standards.
The public sector’s escalating reliance on technology, data sensitivity, the dire consequences of cyber incidents, and the ever-evolving threat landscape spotlight the dire need for rigorous cyber risk assessments.
The role of audit teams in identifying and mitigating cyber risks
A public sector audit team shoulders a multifaceted responsibility to protect government organisations and their citizens. Their scope extends beyond financial audits to encompass comprehensive cybersecurity evaluations. Their invaluable contributions include:
- Risk assessment and prioritisation: Audit teams dissect the cyber risk terrain, spotlight vulnerabilities, and detect potential threats.
- Technical evaluation in collaboration with IT mavens ensures a holistic understanding of weak links.
- Compliance verification confirms adherence to data protection and system security norms.
- Security control assessments evaluate the efficiency of protection measures.
- Preparedness against cyber threats is gauged through incident response plan assessments.
- Collaborations with third-party vendors are scrutinised for cybersecurity compliance.
- Rigorous analysis of data protection measures ensures minimal data breach risks.
- Based on their insights, audit teams propose actionable recommendations to reinforce cybersecurity stances.
- Training initiatives amplify cybersecurity awareness, empowering staff to recognise and neutralise threats.
- Regular surveillance ensures the consistent implementation of recommended security strategies.
- Transparent audit reports foster accountability within the public sector.
- Audit teams perpetually refine their methodologies to stay ahead of evolving cyber threats.
In essence, the public sector audit team functions as the bulwark against cyber threats, delivering an unbiased evaluation of an organisation’s cybersecurity strategies.
Their unrelenting efforts to pinpoint vulnerabilities, suggest enhancements, and champion the adoption of security measures fortify the resilience of government entities against looming cyber threats.
By embracing a risk-based approach, audit teams can align with executive leadership expectations and spotlight gaping holes in cybersecurity governance. Solutions like the Diligent Audit Management Solution and ACL Analytics optimise control testing and streamline workflows, letting teams prioritise identifying vulnerabilities and curbing cyber risks.
Read the full report here.
Keep up with all the latest FinTech news here.
Copyright © 2023 FinTech Global
Copyright © 2018 RegTech Analyst
