What is cyber risk and why your company cannot ignore it

Nowadays, organizations operate in a highly interconnected digital environment. Every technological decision (from the adoption of cloud systems to the implementation of industrial IoT) expands the exposure surface and, therefore, the cyber risk. This term is not limited to the occurrence of isolated incidents, but refers to the probability and the impact of adverse events related to digital threats on critical assets, operations, regulatory compliance, and corporate reputation.

Cyber risk is particularly relevant in critical sectors such as energy, manufacturing industry, healthcare, and public administration, where an incident can have multilevel consequences: operational interruptions that affect the supply chain, significant economic losses, and regulatory sanctions derived from regulations such as NIS2, ENS, or GDPR. According to the most recent data from INCIBE, during 2024 a total of 97,348 cybersecurity incidents were managed in Spain, an increase of 16.6% compared to 2023, which reflects a growing trend in the sophistication and frequency of attacks.

This article offers a technical and exhaustive approach to:
• What cyber risk is and its dimensions.
• Main types and vectors of risk.
• Impact on business continuity and the supply chain.
• Evaluation, mitigation, and monitoring strategies.
• How comprehensive solutions can reduce cyber risk in a measurable way.

What is cyber risk?

Cyber risk is a multidimensional concept that combines the probability of occurrence and the potential impact of security incidents. Technically, it is evaluated considering the exposure of critical systems, the available attack surface, known and emerging vectors, organizational resilience, and the company’s response capacity to adverse events.

Unlike isolated incidents, the management of cyber risk requires a proactive approach, based on quantitative and qualitative models that allow the anticipation of impacts on strategic assets, including IT, OT, critical applications, privileged credentials, and essential suppliers. Its correct evaluation allows companies to:
• Prioritize mitigation resources and efforts.
• Prevent severe operational interruptions.
• Reduce economic and reputational exposure.
• Comply with regulations such as NIS2, ENS, and GDPR, which demand evidence of control, traceability, and risk management.

Main types of cyber risk

Cyber risk is not homogeneous: different vectors affect the confidentiality, integrity, and availability of information and systems in different ways. Understanding it requires sector-based and technical analysis, considering internal and external vectors as well as technological and regulatory risks.

1. External cyberattacks

External attacks are the most visible and documented threat. They include:

• Malware and ransomware: malicious software designed to encrypt, exfiltrate, or alter critical data.
• Mass or targeted phishing: social engineering techniques that compromise credentials and system access.
• APT (Advanced Persistent Threats): targeted, sophisticated, and prolonged attacks against strategic objectives.

Technical impact:
• Interruption of SCADA, PLC, and ERP systems.
• Exfiltration of regulated data (PII, intellectual property, financial records).
• Possible lateral propagation within IT and OT networks.

References: ENISA and DBIR confirm that ransomware continues to be one of the vectors with the greatest operational impact in the EU.

2. Insider threats (Insider Threats)

Not all risks come from the outside. Employees, contractors, or partners can generate incidents accidentally or maliciously. These include:

• Human errors: incorrect configurations, accidental deletion of critical data.
• Privilege abuse: improper access to critical systems, privilege escalation.
• Internal sabotage: deliberate alteration of processes or data.

Technical impact:

• Interruption of critical processes.
• Exposure of sensitive or operation-critical information.
• Difficult tracking of incidents if there is no robust traceability.

Studies indicate that the human element is present in a significant percentage of incidents, although it varies depending on sector and methodology.

3. Technological risks

They include software failures, unpatched vulnerabilities, insecure architectures, legacy systems, and non-segregated OT/IT environments. The convergence between industrial systems and IT increases the attack surface and the complexity of mitigation.

Technical impact:

• Exploitation of critical vulnerabilities: enables unauthorized access, execution of malicious code, or privilege escalation.
• Availability failures and data corruption: can paralyze industrial processes and affect physical and operational safety.
• Lateral propagation: in connected OT/IT environments, an IT failure can compromise critical industrial systems.
• Economic cost: according to IBM Cost of a Data Breach 2024, an average industrial breach amounts to USD 5.56 million.

Trends: increase in attacks targeting OT, use of AI for exploitation of vulnerabilities, and need for cyber-resilience strategies such as network segmentation, continuous monitoring, and privileged access management.

4. Compliance and regulatory risk

Non-compliance with regulations such as ENS, NIS2, or GDPR generates legal, financial, and operational risks, especially for operators of essential services and critical infrastructure providers. Maintaining governance, traceability, and incident control is key to reducing exposure and complying with the law.

Technical impact:

• Governance and traceability: complete logging of access, operations, and changes in critical systems. Without evidence of control, it is interpreted as negligence.
• Mandatory incident notification: NIS2 and ENS require reporting failures that affect essential services within defined deadlines; delays increase legal and continuity risks.
• Economic sanctions and civil liability: significant fines, mandatory audits, and immediate corrective measures if non-compliance is detected.
• Reputational and contractual risk: loss of trust from customers, suppliers, and regulators, affecting contracts, licenses, and future operations.

Technical example: a breach in an operator without segregation of OT/IT environments and without access control logs can lead to fines, additional audits, and regulatory requirements.

Proactive mitigation:

• Implementation of PAM and VDI to control privileged access and secure critical environments.
• Automation of logging and generation of compliance evidence.
• Cyber-resilience strategies combining prevention, early detection, and rapid incident response.

5. Emerging cyber risks

The threat landscape evolves rapidly, driven by technological innovation and system interconnection. Emerging cyber risks not only increase the attack surface, but also introduce vectors that are difficult to detect and mitigate using traditional strategies.

Main vectors:

• Generative AI: advanced automation enables more sophisticated phishing campaigns, creation of deepfakes for information manipulation, and highly personalized large-scale attacks. Additionally, AI facilitates automated vulnerability exploration and the generation of adaptable malware, increasing the speed and effectiveness of attacks.

• IoT and IT/OT convergence: the proliferation of connected industrial devices, smart sensors, and vulnerable actuators introduces critical risks in OT environments. The lack of segmentation and control over these devices can allow lateral movement, manipulation of industrial processes, and unauthorized access to corporate systems.

• Legacy protocols: services such as FTP, Telnet, SNMPv1, and other systems without encryption or traceability remain present in many infrastructures. These protocols are not only easy to compromise but also hinder auditing and regulatory compliance.

• Cloud-based systems and remote services: massive adoption of cloud environments and VDI introduces risks of incorrect configuration, credential exposure, and escalation attacks on multi-tenant platforms.

Strategic impact:
These vectors significantly expand the attack surface and demand advanced defense strategies, including:
• Continuous monitoring: early detection of anomalous patterns in access and network traffic.
• Segmentation and adaptive control: separation of critical environments, granular access control, and dynamic risk-based policies.
• Automated response: integration of orchestration and response systems (SOAR) to contain incidents in real time.
• Auditing and traceability: detailed logging of events, changes, and accesses to comply with regulatory standards and facilitate post-incident analysis.

Comprehensive cyber risk assessment

Effective cyber risk management requires a holistic approach that integrates assets, threats, impact, mitigation, and monitoring, allowing organizations to anticipate, contain, and recover from incidents efficiently.

1. Identification of critical assets

Not limited to servers or applications, but covering all infrastructure that supports operations:
• IT: corporate systems, databases, critical applications, and endpoints.
• OT: industrial controllers, sensors, actuators, and connected devices.
• Privileged credentials: administrator access, service accounts, tokens, and cryptographic keys.
• Essential suppliers and third parties: technology partners, cloud services, and critical APIs that, if compromised, can directly impact business continuity.

2. Detection of threats and vulnerabilities

Proactive identification of risks is key:

• Threat hunting and red teaming: attack simulations to discover weaknesses before real attackers exploit them.
• Continuous vulnerability scanning: prioritization based on criticality, exposure, and business context.
• Prioritized patch management: integration of known vulnerabilities into the remediation cycle, minimizing the exposure window.

3. Quantification of impact

Measuring risk quantitatively enables informed decisions:

• Economic modeling: calculation of Annual Loss Expectancy (ALE), scenario analysis with Monte Carlo, and assessment of interruption and recovery costs.
• Continuity metrics: RTO (Recovery Time Objective) and RPO (Recovery Point Objective) to evaluate operational impact.
• Reputational and legal assessment: possible regulatory penalties, loss of customer trust, and media exposure.

4. Risk prioritization

Performed using matrices combining probability and impact, including:

• Residual risk: assessment of which vulnerabilities remain after applying existing controls.
• Organizational tolerance: alignment with business strategy and the organization’s risk appetite.

5. Mitigation plan

It must include technical and organizational controls:

• Technical: EDR/XDR, network segregation, PAM, isolated sessions, data encryption at rest and in transit, multi-factor authentication, and least-privilege policies.
• Organizational: clear definition of roles and responsibilities, separation of duties (SOD), escalation procedures, and incident response protocols.

6. Monitoring and continuous improvement

Cyber risk is dynamic, making constant vigilance critical:

• SIEM/SOAR: event correlation, automated analysis, and orchestrated response.
• Response exercises and simulations: resilience tests, tabletop exercises, and periodic audits.
• Maturity KPIs: measurement of control effectiveness, detection and mitigation time, and alignment with international standards (ISO 27001, NIST CSF, IEC 62443).

A comprehensive cyber risk assessment not only identifies and measures threats, but also allows prioritization of efforts, implementation of effective controls, and maintenance of an adaptable cyber-resilience posture amid constantly evolving threats.

Advanced strategies to mitigate cyber risk

Effectively mitigating cyber risk requires a combination of technical controls, organizational processes, and continuous vigilance. Advanced strategies focus on ensuring traceability, controlling access, maintaining operational resilience, and ensuring proactive regulatory compliance.

1. Immutable traceability and logging

• Complete event auditing: capture and correlation of all actions in critical systems, including access, modifications, and privileged operations.
• WORM logs (Write Once, Read Many): ensures that records cannot be altered, protecting the integrity of evidence.
• Digital signature and distributed telemetry: authenticates events and provides a verifiable history, useful for regulatory audits and forensic analysis.
• Integration with SIEM/SOAR: centralizes logs, enables real-time analysis, and automates incident response.

2. Segmentation and Zero Trust

• IT/OT microsegmentation: isolation of critical networks to prevent lateral movement by attackers, protecting industrial and corporate systems.
• Dynamic access policies: based on risk, location, type of device, and user behavior.
• Flow control: granular management of protocols and applications, limiting the exposure of legacy or vulnerable services.

3. Incident response plans

• Predefined playbooks: detailed guides to respond to different attack scenarios, from ransomware to data exfiltration.
• Clear roles and responsibilities: assignment of tasks to security teams, IT, and management, ensuring speed and coordination.
• Tabletop simulations and recovery tests: regular exercises that verify plan effectiveness and adjust procedures to new attack vectors.

4. Continuous regulatory compliance

• Integration of ENS, NIS2, and GDPR: ensures that security processes continuously incorporate regulatory requirements.
• Audit evidence: verifiable logs and reports that support compliance during inspections and regulatory reviews.
• Compliance automation: systems that generate automatic alerts and reports for policy deviations.

5. Periodic risk updating

• Adaptation to emerging threats: constant monitoring of vectors such as generative AI, industrial IoT, and legacy protocols, enabling rapid control adjustments and mitigation.
• Continuous vulnerability assessment: integration with threat intelligence and exposure analysis to prioritize efforts based on criticality.
• Feedback from previous incidents: learning from attacks and simulations to improve policies, segmentation, and future response.

These advanced strategies combine technical control, governance, and adaptability in the face of a dynamic threat landscape. Implementing immutable traceability, Zero Trust, solid response plans, and continuous risk updating allows organizations not only to protect themselves, but also to anticipate and contain threats proactively, reducing financial, operational, and reputational impact.

How Endurance helps manage cyber risk

• Automated traceability: centralized, signed, and verifiable logging, facilitating auditing and notification.
• IT/OT visibility: sensors, event correlation, and continuous monitoring.
• Privileged access control: mitigation of exfiltration and internal abuse, PAM integration, and secure sessions.
• Support for operational continuity: automated containment, recovery playbooks, and segregation of critical services.
• Protection of legacy protocols: encryption, encapsulation, segmentation, and traceability of FTP, Telnet, and legacy services (Cosmikal).

Technical table of cyber risk vectors and Endurance capabilities:

Cyber Risk Vector	Risk Description	Cosmikal Capabilities	Impact on Risk Management
Compromised Privileged Access	Theft or misuse of credentials, privilege escalation	Centralized privilege management, encrypted vault, least-role access, audited and isolated sessions	Reduces attack surface, prevents exfiltration and internal misuse; full traceability
Internal Errors or Sabotage	Accidental or malicious activities affecting data and operations	Session and privilege control, continuous monitoring, auditing of critical activities	Minimizes impact of errors/sabotage, early detection, and evidence for audits
External Attacks	System infection, data encryption, operational disruption	Isolated and shielded environments, IT/OT segmentation, activity filtering and dynamic controls	Reduces malware propagation, protects operational continuity, and limits financial impact
Technological Failures	Unpatched software, insecure architectures, non-segregated OT/IT environments	Microsegmentation and traffic control	Prevents exploitation of critical vulnerabilities and limits technical and operational risk
Compliance and Regulatory Risks	Non-compliance with NIS2, ENS, GDPR; economic and reputational penalties	Verifiable event logging, centralized auditing, security policies integrated with regulations	Enables compliance evidence, reduces sanction risk, and improves audit response
Emerging Cyber Risks	Attack automation, insecure IoT, IT/OT convergence	Asset visibility, monitoring, segmentation, and adaptive access control	Early detection, control of critical surfaces, and mitigation of advanced threats

Conclusion

Cyber risk is a strategic variable that no organization can ignore. Empirical evidence from INCIBE, ENISA, IBM, and DBIR confirms:

• Increase in incidents and persistent vectors such as phishing and compromised credentials.
• High economic costs, especially in industrial sectors.
• Need for comprehensive management combining asset identification, impact quantification, technical controls, and regulatory compliance.

Cyber risk ceases to be a diffuse threat when addressed in a structured and measurable manner. Cosmikal solutions drastically reduce the real attack surface, allow anticipation, detection, and containment of incidents before they cause significant damage, ensure traceability, and facilitate regulatory compliance in critical environments. Thus, digital security ceases to be an abstract concept and becomes a controllable, operational process aligned with business continuity, transforming the way organizations protect their assets and operations.

Cyber risk is particularly relevant in critical sectors such as energy, manufacturing industry, healthcare, and public administration.