The Role of HR in Cyber Risk Management

The increasing prevalence of remote and hybrid word modes over the last few years has posed intense challenges for businesses and their owners on cyber risk management. Despite the nature of the issue being IT-related, it was believed that HR function has become integral.

Wonder what is the role and responsibility of HRs in a company when it comes to cyber risk management? This Pacific Prime article aims to demystify the intricacies of HR’s role in cybersecurity so that business owners and HR can work seamlessly in managing cyber risks and handling confidential data.

Most Cyber Risks Are Completely Manageable

IT setting up firewalls and data encryption are crucial in protecting an organization from breaches; but those are not enough to protect against the biggest vulnerabilities– people. That’s why recent trends in cybersecurity call for HR collaboration with IT to maximize effectiveness.

In fact, over 95 percent of all breaches resulted from human error. Cyber security teams, after thorough investigation, believed that remote or hybrid work mode has heightened the chances of cyber security risks, leaving the organization vulnerable to cyber attacks.

With cyber security risks being a people issue, it underscores the fact that these risks are absolutely preventable. Cyber criminals are more active amidst the current workplace landscape, and HR leaders should step up and be the strategic thinkers who can help mitigate the risk facing the organization.

The Role of HR in Cybersecurity

The role of HR is underestimated. Through managing employee data control and access, ensuring regulatory compliance, and conducting employee education, HR can play a centralized role in the development of solid cybersecurity defenses.

Employee Data Control and Access

HRs in the organization can decide “who can access what data” and “how to control that access”. By doing so, the company can avoid unnecessary risk of data leak and exposure. It can also be used to narrow down and trace potential “culprit” upon a cybersecurity incident.

Companies have been experiencing large rounds of layoffs and reduced perks, and so should watch for “bad leavers”. It is shocking to find out that more than insider-related incidents have risen more than 44 percent over two years, costing companies up to US $15.45 million a year.

HR, as the first group of people knowing whether the employee is staying or leaving, should retaliate to malicious attempts of data and security breach by minimizing opportunities for them to steal intellectual property, go-to-market plans, or client lists.

56 percent of these accidents are caused by negligence. Ensure employees do not have access to any of the systems by working with the IT team, such as deactivating their accounts or limiting their access to confidential files.

Regulatory Compliance

Responsibility for navigating privacy regulatory compliance is gradually becoming the co-responsibility of HR and IT. HR now is often tasked with conducting privacy regulation training for employees and third-party vendors engaging with the organization’s data.

HRs are responsible for managing employee compliance with organizational practices, so they are also best positioned to provide guidance on appropriate employee misconduct or errors, and to decide how the organization will respond to any regulatory data violation.

Employee Education

HRs are persons who communicate messages around internally. One way to raise awareness on cybersecurity is to organize relevant training programs to educate employees about best practices, potential threats, and sensitive information protection and incorporate them into a regular training schedule.

Training sessions can cover topics on common cyber threats and general data security knowledge such as phishing attacks, secure remote access, password hygiene, identifying phishing attempts, using secure Wi-Fi networks, and maintaining the security of their remote work environments.

The same series of training should also be executed on all recent hires as part of the onboarding process. Particularly for organizations that offer hybrid or remote work, it is of utmost importance to help employees navigate work policies, procedures, and expectations.

Cyber Risk Management: Execution Tips for HR

Policy Development and Enforcement

HR can work closely with IT and security teams to develop comprehensive cybersecurity policies and guidelines. These policies should cover remote work practices, use of personal devices, data handling procedures, password management, and incident reporting protocols.

When developing these protocols, think about: Is the worker on a hybrid or fully remote work mode? What types of work within their responsibility can be performed remotely and which must be done in the office?

Recruitment and Onboarding

HR can collaborate with IT and security teams to ensure that cybersecurity considerations are incorporated into the recruitment and onboarding processes. This includes conducting background checks, verifying references, and providing new employees with security awareness training.

Monitoring and Compliance

HR can assist in monitoring employee compliance with cybersecurity policies and procedures. This may involve periodic reviews of remote work setups, ensuring that employees and devices have necessary security measures in place, and addressing any non-compliance issues promptly.

Incident Response and Reporting

HR can establish clear reporting channels for cybersecurity incidents or suspicious activities. They can work with IT and security teams to develop an incident response plan, including communication protocols, data breach notification procedures, and support for affected employees.

Employee Engagement

HR can play a role in fostering a culture of cybersecurity awareness and engagement among employees. This can be achieved through ongoing communication, reminders, and recognition of individuals or teams that demonstrate exemplary cybersecurity practices.

Tier Up Your Cyber Risk Management Tactic with Cyber Insurance

From policy development and enforcement to incident response and reporting, HR is proven to play an important role through active engagement in cybersecurity-related issues. That said, cyber threats beyond control can still slip through even with the most powerful defense.

Any sort of data breaches or monetary loss are significant– it hurts an organization’s reputation, operation, and most importantly the long-established rapport with clients. And this is why every company should consider securing cyber insurance to protect against any Internet security threats. 

Cyber insurance provides coverage for:

Cover breach response costs: This includes expenses related to forensic investigations, customer notification, credit monitoring, PR management, legal advisors, and compliance with breach notification laws.
Pay for business interruption losses: If a cyber attack disables systems or access to data, coverage can help recoup profits lost during downtime needed for recovery.
Provide cyber extortion protection: For threats involving sensitive data theft and demands in exchange for not leaking or selling the information.
Offer crisis management services: Policies may include help from breach coaches, legal advisors, and PR consultants in the insurance company’s approved vendor list.

Pacific Prime is experienced in providing businesses of all sizes with innovative insurance solutions. Contact our team of expert advisors to get started with the process of protecting your company from cyberattacks and other business threats!

Eric is an experienced content writer specializing in writing creative copies of marketing materials including social media posts, advertisements, landing pages, and video scripts.

Since joining Pacific Prime, Eric was exposed to a new world of insurance. Having learned about insurance products extensively, he has taken joy and satisfaction in helping individuals and businesses manage risks and protect themselves against financial loss through the power of words.

Although born and raised in Hong Kong, he spent a quarter of his life living and studying in the UK. He believes his multicultural experience is a great asset in understanding the needs and wants of expats and globe-trotters.

Eric’s strengths lie in his strong research, analytical, and communication skills, obtained through his BA in Linguistics from the University of York and MSc in Teaching English to Speakers of Other Languages (TESOL) from the University of Bristol.

Outside of work, he enjoys some me-time gaming and reading on his own, occasionally going absolutely mental on a night out with friends.

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