Cyber Risk Management – Technical and Business Impact

When assessing the impact of events, systems, or decisions, it is crucial to evaluate both technical and business impacts, as they collectively determine an organisation's overall effect. These two domains intersect significantly, with technical failures often cascading into broader business consequences.

Technical impacts revolve around the Confidentiality, Integrity, and Availability (CIA) of systems, data, and operations, forming the core pillars of information security and key metrics for assessing risks and vulnerabilities. Confidentiality focuses on safeguarding sensitive data from unauthorised access; breaches, such as leaked customer information, can lead to data theft and significant privacy violations. Integrity ensures that data remains accurate, consistent, and unaltered; any compromise, whether through malicious tampering or system errors, can severely impact decision-making and operational processes that rely on reliable data. Availability ensures that systems and data are accessible when needed; disruptions caused by cyberattacks or technical failures can result in halted operations, delays, and customer dissatisfaction. Although these impacts may appear limited to IT systems, their consequences extend far beyond, influencing broader business dynamics and organisational performance.



Business impacts reflect the broader organisational consequences of technical failures or external disruptions, typically categorised into Financial, Reputation, and Non-compliance impacts. Financial impacts involve direct costs such as revenue loss, fines, or repair expenses; for instance, a data breach might require substantial investment in recovery efforts and customer compensation. Reputation impacts occur when incidents erode stakeholder trust, with breaches of confidentiality or prolonged service outages damaging brand credibility, driving customer attrition, and reducing market share. Non-compliance impacts arise from regulatory requirements like GDPR, SOX, or HIPAA violations, exposing organisations to legal penalties, operational restrictions, or even license suspension.

The interdependence between technical and business impacts underscores their combined significance; for example, a ransomware attack can simultaneously disrupt system availability (technical impact), harm reputation, incur financial losses, and lead to compliance breaches. To effectively mitigate these risks and ensure long-term sustainability, organisations must take a holistic approach that addresses both technical and business dimensions.