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Securing business continuity
The nature of risk is ever-changing – we all know this. Whether it’s the growing sophistication of cyber threats, the increasing complexity of fraud and compliance requirements, or the pressure from regulators to stay compliant, businesses face a unique set of challenges. Questions like "What are the emerging threats we should be prepared for?" or "How connected are these risks?” are challenging perceived assumptions about resilience.
Yet, with this shifting landscape comes opportunity—the opportunity to turn risk into a strategic advantage. The key is staying ahead of emerging threats and building proactive risk management strategies to protect both operations and reputation.
In a recent Nomentia webinar, SEB's Kristoffer Sjöström and Brian Hopkins from Nomentia explored the new landscape of threats, the challenges of shifting from reactive to proactive risk management, and the importance of resilience, technology, and compliance in securing your organization’s future.
The evolving risk landscape
Cyber threats are evolving at a pace that outstrips most organizations' ability to react. From phishing and ransomware to more sophisticated Distributed Denial of Service (DDoS) attacks and insider threats, the landscape is filled with dangers. These threats have become more targeted, often involving complex, multi-layered attacks designed to exploit vulnerabilities in systems, software, and human behavior. “We are seeing a dramatic rise in phishing and ransomware attacks, where cybercriminals are leveraging artificial intelligence to execute highly targeted attacks," says Brian Hopkins. “As these attacks increase in frequency and complexity, businesses must bolster their defenses, staying ahead of potential attackers.”
Fraud—both internal and external—is another key threat that businesses must address. Internal actors, like employees or contractors, may exploit their access to sensitive information, while external fraudsters are increasingly using digital platforms to conduct scams. Simultaneously, compliance risks continue to grow. With regulations like the General Data Protection Regulation (GDPR), the Network and Information Security Directive (NIS2), and the Digital Operational Resilience Act (DORA) tightening, companies must stay vigilant. “Governments and regulators are becoming stricter on resilience,” notes Kristoffer Sjöström. “Non-compliance not only leads to regulatory fines but also to reputation damage and operational disruption. The pressure to adapt and remain compliant is mounting.”
Transitioning from reactive to proactive risk management
The tragedy of the reactive approach to risk management
Traditionally, many organizations have responded to risks only after they have manifested. This reactive approach can be costly, both financially and reputationally. In today's digital business landscape, reacting too late can mean facing catastrophic disruptions. When a security breach occurs, it’s often a result of months, if not years, of accumulated vulnerabilities. “In a reactive environment, it’s almost impossible to stay ahead of the ever-evolving threat landscape,” Brian Hopkins explains. “The ability to recover after a breach is vital, but true resilience comes from identifying risks before they materialize.”
Mapping out proactive risk mitigation strategies
The most successful organizations today are those that have shifted to a proactive risk management model, anticipating threats before they escalate. This involves regularly assessing potential risks, implementing management systems that track vulnerabilities, and ensuring that risk protocols are in place. Businesses should consider certifications like ISO 27001, for example, to ensure they are prepared. “Being proactive doesn’t just mean having a plan in place—it means fostering a culture where risk management is part of daily operations,” says Kristoffer Sjöström. “By focusing on risk visibility and early detection, businesses can significantly reduce the chances of a devastating breach.”
The role of technology in risk mitigation
Technology is a key enabler in risk mitigation: As technology continues to advance, it plays a crucial role in improving risk visibility and management. AI-driven tools are increasingly used for threat detection and response, enabling businesses to identify potential risks earlier. AI, machine learning, and other advanced technologies can analyze vast amounts of data in real time to detect anomalies and predict emerging threats. "AI has the potential to transform risk identification and response,” says Brian Hopkins. “These technologies allow businesses to stay one step ahead of potential cyber threats, making them a key part of modern risk management strategies.”
Legacy assets and outdated components are risky, but technology isn't just about the latest innovations—it's also about managing what you already have. Legacy systems and outdated technology are significant risks, especially when they aren't regularly updated or maintained. "Outdated technology can leave gaping holes in your security posture," warns Kristoffer Sjöström. “Organizations must prioritize lifecycle management to ensure their systems remain secure and up-to-date.”
The toil and trouble of managing third-party risks: Third-party risks also represent a growing concern. As organizations increasingly rely on external vendors and service providers, the risk of breaches stemming from third parties rises. Ensuring that third-party contracts include proper security measures and that regular audits are performed is vital to mitigating this risk. “It’s crucial to control third-party components to mitigate risks effectively,” notes Brian Hopkins.
Human factors in risk management
Training and awareness: Even the best technologies and systems can fail if the human factor is not accounted for. Employees must be well-trained to spot and respond to security risks. Phishing attacks, for instance, remain one of the most common methods used to breach systems. A comprehensive training program that includes regular threat scenario simulations can significantly reduce the likelihood of successful attacks. “Security is not just an IT issue; it’s an organizational one,” says Kristoffer Sjöström. Ensuring that everyone—from entry-level staff to top management—is aware of security protocols is critical.
Collaboration across teams is critical: Effective risk management goes beyond the IT department. A siloed approach to security can lead to gaps in coverage. Collaboration between departments like IT, security, treasury, and even HR is key to ensuring comprehensive risk management. Kristoffer Sjöström explains, “Cross-functional teams improve communication and response, making the organization more resilient to threats.” Security is everyone’s responsibility, and fostering this mindset is essential to maintaining a strong security posture.
The growing importance of business continuity and resilience
Building resilience into business operations: There’s no escaping the fact that today’s organizations must plan for disruptions—whether from cyberattacks, economic crises, or natural disasters. Business continuity and resilience strategies are essential to maintaining operational stability. Ensuring the confidentiality, integrity, and availability (CIA) of information during crises is crucial to preventing long-term damage. “Resilience is not just about security; it’s about having systems in place to maintain operations even in the face of adversity,” says Brian Hopkins.
Collaborative risk sharing: In an interconnected world, sharing information about emerging risks is essential. By collaborating with other companies, especially within the same industry or region, businesses can create a stronger, more resilient risk management network. Kristoffer Sjöström emphasizes, “Building communities of trust with stakeholders strengthens overall resilience.” Collaboration isn’t just about sharing resources; it’s about sharing insights to stay ahead of threats.
Regulatory compliance and evolving risks
Evolving regulations in a sophisticated environment: As regulations become more complex, businesses must stay ahead of the curve to ensure compliance. New regulations bring stricter requirements for operational resilience and security, and non-compliance can lead to significant penalties. “Regulatory frameworks are evolving rapidly,” says Kristoffer Sjöström, “and staying compliant is no longer optional—it’s a requirement.” Understanding and adapting to these changes is critical for businesses to remain competitive and avoid legal trouble.
Consequences of non-compliance: Failing to comply with evolving regulations can result in hefty fines and reputational damage. Companies must ensure that they are constantly auditing their compliance status and aligning their practices with current laws. “Non-compliance isn’t just a financial risk—it’s a risk to your business’s long-term viability,” adds Brian Hopkins.
Summary: Mitigating cyber threats and risks
The evolving risk landscape presents complex challenges for businesses, but it also offers opportunities for growth and improvement. By proactively managing cybersecurity threats, fraud, and compliance risks, companies can not only mitigate potential damage but also build a more resilient and agile organization.
Whether through investing in the right technologies, fostering a culture of awareness, or staying ahead of regulatory changes, businesses must make risk management a core part of their strategy. The threats are evolving, and so must your approach. It’s time to shift from a reactive to a proactive risk management mindset—and the sooner, the better.
