Insider

Risk
E-BOOK

NEVEN

Zitek
CYBER SECURITY BUSINESS
SOLUTIONS DIRECTOR

January 2025
Insider risk

Insider risk is a threat or harm that comes from individuals within an organisation who
have authorised access to its systems, networks, or data. These individuals - referred to
as "insiders" - can either intentionally or unintentionally cause damage, data breaches,
fraud, or other harmful activities impacting confidentiality, integrity, or even the
availability of information and/or information systems.

Types of insider risk

Insider risk can be categorised into several types, depending on the nature of the threat.

Malicious Insider Threats:

Stealing sensitive or proprietary information, such as intellectual property,
customer data, or financial records, often for resale, personal use, or to
benefit a competitor. Deliberately causing damage to the organisation’s
systems, data, or infrastructure, such as deleting critical files, introducing
malware, or disrupting services to hurt operations. Engaging in fraudulent
activities like financial fraud, manipulation of records, or misappropriating
company funds for personal gain.

Unintentional Insider Threats (Accidental Risk):

Unintentional mistakes such as sending sensitive information to the wrong
recipient, misconfiguring security settings, or accidentally disclosing
confidential data. Insiders losing company-issued devices like laptops,
smartphones, or USB drives that contain sensitive data without proper data
protection mechanisms such as encryption, which may then fall into
unauthorised hands.

Negligent Insider Threats:

Using weak passwords, failing to update software, or neglecting to follow
proper access controls, making it easier for malicious actors to exploit
vulnerabilities. Failing to adhere to organisational security policies, like
sharing passwords, leaving devices unattended, or bypassing security
protocols in favour of convenience - such as “shadow IT” file sync services
that enable users to sync business documents with computers and mobile
devices accessible anywhere and anytime. When such unmanaged devices
are compromised attackers gain access to sensitive corporate data without
any knowledge of the impacted organisation. Not properly managing or
disposing of sensitive information, such as leaving documents containing
confidential data in public areas or failing to shred sensitive paper records.

Privilege Misuse:
An employee who has more access rights or privileges than necessary for
their job, allowing them to access, modify, or delete sensitive data. An
insider who uses their access to perform unauthorised actions, such as
accessing data outside their role or circumventing security measures.
 Social Engineering by Insiders:
An insider unintentionally sharing login credentials or other sensitive
information after falling victim to a phishing attack, which is then exploited
by an external attacker. Insiders who, due to a lack of training or awareness,
are manipulated by attackers to provide unauthorised access to critical
systems or data.

Compromised Insiders:
Attackers stealing or guessing an insider’s login credentials, thereby using
them to access sensitive data or systems. Insiders who are coerced or
blackmailed by external parties into providing access to organisational
resources or engaging in malicious activities.

Departing Employee Risks:

Departing employees taking sensitive data, intellectual property, or trade
secrets when leaving the organisation, often to use in a new job or to
benefit a competitor. Former employees may sabotage systems or data
during their exit process, for example, by introducing malware or deleting
crucial files. Employees who leave may still have access to company
systems if proper offboarding processes aren’t followed, posing a risk of
unauthorised access or data leakage.

Consequence of insider risk

Insider risks can have significant consequences for

organisations, especially if not managed
properly. Here are main impacts:

Financial Losses Damage to Reputation

Insider threats can lead to direct Incidents can harm an
financial losses through theft or fraud, organisation's reputation,
and indirect costs related to resolving affecting customer trust and
data breaches. business relationships.

Business Disruption Loss of Competitive Advantage

Critical operations can be interrupted, Sensitive information, such as
leading to downtime and loss of trade secrets, can be leaked,
productivity. giving competitors an edge.

Regulatory Non-Compliance Employee Morale

Failing to manage insider risks can Security incidents can create a
result in non-compliance with stressful work environment,
regulations, leading to fines and legal affecting overall employee morale
penalties. and productivity.
How to manage insider risk

Managing insider risk is a critical aspect of maintaining organisational security, ensuring

data protection, and safeguarding intellectual property. Given the wide range of potential
consequences of insider threats, effective management involves a combination of
proactive strategies, technological tools, policies, and a strong organisational culture.

Here are best practices to help manage insider risk:

1. Establish Clear Policies and Procedures

Information Asset inventory is a crucial step in insider risk management. It
helps in understanding the importance and impact of information on
business processes. Policies and technical measures should be designed to
protect information in proportion to their value and impact on business
processes.

Risk Assessment: Regularly assess the risks associated with each

information asset. This includes identifying potential insider threats and
vulnerabilities. Please remember that risks will change over time and that
risk assessment is an ongoing activity.

Access Controls: Implement strict access controls based on the principle

of least privilege. Ensure that employees only have access to the
information necessary for their roles. Note that data classification provides
the foundation for implementing effective access controls, ensuring that
data is protected according to its value and sensitivity.

Code of Conduct: Create clear policies regarding acceptable behaviour,

confidentiality, and security standards. Ensure that employees understand
their responsibilities concerning data and information security.

Insider Threat Policy: Develop a specific policy for managing insider threats,
detailing the procedures for detecting, reporting, and responding to
suspicious behaviour or incidents.

2. Employee Awareness and Training In

Span Cyber Security Centre
Ongoing Security Training: Regularly educate employees about cybersecurity
risks, social engineering tactics, and how to recognise and report suspicious
activity. This should include specific training on insider threats and how
they can be detected early.

Behavioural Training: Teach employees about the importance of ethical

behaviour, company values, and the potential consequences of engaging in
or overlooking insider threats.

Phishing and Social Engineering Simulations: Conduct regular phishing tests

and simulations to teach employees how to spot phishing emails and other
common social engineering tactics used to exploit insiders.
3. Implement Strong Access Controls
Least Privilege: Limit access to sensitive systems, data, and information to
those who need it for their role, and ensure access is reviewed regularly.

Multi-Factor Authentication (MFA): Require MFA for accessing critical

systems to add an additional layer of security beyond just passwords.

Separation of Duties: Ensure that critical tasks require multiple individuals

to complete, reducing the risk of one insider having too much control over a
process.

Regular Access Audits: Conduct periodic reviews of who has access to what
and remove access for employees who no longer require it.

4. Monitor and Analyse User Activity

User Behaviour Analytics (UBA): Use UBA tools to monitor and analyse user
behaviour for signs of unusual or risky activity. These tools can help detect
potential insider threats by identifying deviations from normal patterns.

Logging and Auditing: Implement robust logging to track activities, such as

access to sensitive data and systems. Regularly audit logs to detect any
suspicious or unauthorised actions.

Real-Time Monitoring with Span Security Operations Centre: Use real-time

monitoring systems that can immediately alert security teams about any
anomalies or suspicious activities, such as accessing unauthorised files or
data transfers.

5. Create a Strong Incident Response Plan

Rapid Detection and Response: Develop a response plan that ensures quick
detection, containment, and mitigation of insider threats. The plan should
clearly outline steps for investigating incidents and handling legal,
regulatory, and PR ramifications.

Reporting Mechanisms: Encourage employees to report suspicious activity

anonymously. Establish a clear and confidential reporting process for
employees to alert management about potential insider threats.

Incident Simulations: Regularly run security incident drills to ensure the

team is prepared for real-world scenarios. Practice responding to insider
threats, data breaches, and other security incidents.
 6. Leverage Technology Solutions
Data Loss Prevention (DLP): Implement DLP tools to monitor and restrict
the movement of sensitive information across networks and endpoints. This
can help prevent unauthorised data transfers by insiders.
Endpoint Detection and Response (EDR): Use EDR tools to monitor and
respond to suspicious activity on devices, such as laptops, smartphones, or
workstations, that could be exploited by insiders.
Encryption: Encrypt sensitive data both at rest and in transit to ensure that
even if data is accessed or stolen, it remains protected.

Digital Rights Management (DRM): Use DRM tools to prevent the

unauthorised distribution of sensitive content, such as intellectual property
or trade secrets.

7. Monitor and Control External Access

Third-Party Risk Management: Assess the security practices of third-party
vendors or contractors who have access to your systems and sensitive
data. Make sure they adhere to the same security standards as your
internal teams.

Privileged Access Management (PAM): Control and monitor external

contractors and third-party users with privileged access to critical systems.
Ensure that access is temporary and limited to specific tasks.

By combining these practices into a cohesive insider risk management program,

organisations can significantly reduce the likelihood and impact of insider threats,
helping safeguard their assets, reputation, and long-term success.

How Span can help with establishing

insider risk management?
Starting to manage insider risk is essential to protect your organisation from
potential threats like data theft, fraud, or unintentional leaks. We can help by
conducting a comprehensive risk assessment to identify vulnerabilities, developing
clear policies for data handling and acceptable use, and ensuring these policies
align with industry standards. We also provide customised employee training to
raise awareness about insider threats and their role in prevention.

Additionally, we can assist with implementing strong access controls, provide

real-time monitoring, and build an effective incident response plan to quickly
address any security breaches.

Partnering with us will help you create a robust insider risk management strategy
and improve your overall security. Encourage a culture where employees feel
comfortable reporting suspicious behaviour without fear of retaliation. Finally,
continuously assess and update your insider risk management strategies to adapt
to new threats and changes in your organisation.

Contact us at: info@[Link]