Cyber exposure: Assessment and exposure management

Cyber threats are a significant concern for modern organizations, and it can sometimes feel as if danger lurks around every digital corner. Managing your organization’s total cyber exposure is key to protecting sensitive customer information and preventing devastating data breaches. Let’s take a look at how to assess and manage your cyber exposure so you can keep your systems safe.

What is cyber exposure?

Many risks and vulnerabilities fall under the cyber exposure umbrella and can be broken into two categories: third-party and first-party exposure. Third-party exposure leaves you vulnerable to external threat actors, like hackers and other malicious cybercriminals. First-party exposure leaves you vulnerable to internal security threats, such as accidental data exposure or disgruntled employees.

Understanding your cyber exposures is an essential part of any enterprise cybersecurity strategy. Larger systems create a greater possible attack surface and increase your cyber exposure. You’ll need to constantly monitor and update your systems to keep pace with new threats and eliminate vulnerabilities.

Cyber exposure vs. vulnerabilities vs. cyber risks

The terms “cyber exposure,” “vulnerabilities,” and “cyber risks” are often used when evaluating cybersecurity strategies. Let’s break down what these terms mean in this context.

• Cyber exposure: Exposure is the overall state of your systems relative to the current threat landscape. The more vulnerabilities and higher risk levels you have, the greater your cyber exposure is.
• Vulnerabilities: Vulnerabilities are specific weaknesses that could leave your system vulnerable to attack or exposure. For example, poor access management could make it easy for hackers to break in.
• Cyber risks: Risks are the potential for losses or damage that could result from vulnerabilities. This threat could include data exposure, system damage, or financial losses.

What are the key components of cyber exposure?

Cyber exposure is complex and multifaceted. When assessing your organization’s cyber exposure levels, consider the following key components.

Digital assets at risk

The first component of cyber threat exposure is the digital assets in your system that are vulnerable to cyber threats. These could include:

• Endpoints — any devices that connect to a network, such as laptops, smartphones, routers, and printers, as well as on-premise servers and other physical hardware.
• Applications — software programs designed for desktop and mobile devices.
• Cloud infrastructure — software and hardware necessary to store data remotely in the cloud.
• Personal data and credentials — sensitive information such as login credentials, financial details, and personally identifiable information (PII) that cybercriminals seek to exploit.

Over the past few decades, many enterprises have migrated their operations entirely online. With this shift, the number of digital assets necessary for normal operation has grown substantially. As organizations add new digital assets to their systems, the attack surface increases, with more possible vulnerabilities to be aware of.

Common vulnerabilities

Many organizations have vulnerabilities in their systems that increase their cyber exposure despite having a cybersecurity strategy in place. Some examples of common cybersecurity vulnerabilities include:

• Unpatched software. Hackers will exploit flaws in outdated software programs to launch cyberattacks. Installing software patches and updates as soon as they’re available is necessary to maintain security.
• Misconfigurations. When teams fail to configure the settings properly while installing new hardware or software, it makes the systems vulnerable.
• Code errors. Even a small mistake in your code could leave your system open to data breaches or attacks, which is why the pre-launch review is essential.
• Poor access controls. When organizations fail to implement password security or multi-factor authentication requirements, user accounts are vulnerable to compromise.
• Lack of privilege levels. Another common mistake is giving every user access to the entire system rather than designating privilege levels based on roles and responsibilities. This equal access leaves systems vulnerable to internal threats.
• Poor encryption. Data should be encrypted in transit and at rest to prevent exposure. However, organizations may fail to encrypt all data or use encryption protocols that aren’t strong enough to hold off external threat actors.
• Lack of system monitoring. Implementing 24/7 system monitoring and threat detection tools helps teams catch cyber threats as soon as they happen to prevent them from escalating. Failing to monitor systems puts teams on defense in the event of a cyberattack, making them struggle to recover lost data and get systems up and running again.

How does cyber exposure lead to risks?

The greater your cybersecurity exposure, the higher your risk of cyberattacks, data loss, and other adverse events. Threat actors focus on organizations with a high level of cyber exposure and look for vulnerabilities to exploit. Many hackers use new technologies and attack strategies to stay one step ahead of their targets.

More specifically, these threat actors will look for exposed assets they can access without authorization. For example, they might identify a misconfiguration in the company’s software and use that to gain access to secure systems. Then, they’ll select the most effective attack vectors for their goals.

Examples of common attack vectors include:

• Social engineering. Threat actors use emotional manipulation to trick targets into sharing valuable or sensitive information. The most common example is phishing when a hacker sends a message posing as a trusted organization and exploits this trust to trick their target into sharing secure login credentials or financial information.
• Malware. Hackers embed malicious software downloads into email attachments or decoy websites, often using infostealer malware to spy on targets. These programs can spy on you or even steal your files.
• DDoS attacks. Distributed denial-of-service (DDoS) attacks overwhelm target systems with requests and make them unable to function. These attacks are typically conducted using botnets.
• Man-in-the-middle attacks. Hackers intercept digital communication between two people, often by exploiting other users on public Wi-Fi networks. Cybercriminals use this strategy to steal data or even send false messages.
• SQL injections. Hackers inject malicious SQL code into web application forms, which allows them to steal or manipulate data.
• Brute-force attacks. Hackers use trial and error to guess passwords and other login credentials. Bots speed up this process by automatically testing character combinations or already leaked credentials until they find a match.
• Insider attacks. Employees or business partners target your systems from the inside. These attacks can happen when disgruntled employees partner with outside threat actors or by accident due to negligence.

This level of cyber exposure has real-world consequences. Some of the risks associated with extensive cyber exposure include:

• Downtime. If cybercriminals exploit active attack vectors, your systems could be offline for an extended period of time.
• Financial losses. Recovering from a cybersecurity incident is an expensive process. Between lost revenue, system repair costs, and fines, these security incidents can take a dent out of your budget. The average cost of a data breach in 2024 was $4.88 million.
• Lost or exposed data. When data is exposed, it puts your customers at risk of identity theft. Your intellectual property and other secure business data could also be stolen.
• Compliance concerns. Depending on your location and industry, data breaches could result in fines or even legal consequences.
• Damaged reputation. A cybersecurity event can make it difficult for both current and future customers to trust your business. It takes time to recover your reputation and rebuild that trust.

How to assess and measure cyber exposure

An honest, thorough assessment is the first step to reducing cyber exposure. Since cyber exposure is a multifaceted concept, you’ll need to review many aspects of your system and make changes accordingly.

Some organizations calculate and track a cyber exposure score, which is a numerical quantification of cybersecurity risks across your entire system. However, there isn’t a standard system for measuring cyber threat exposure, so if you take this approach, you’ll need to develop your own formula. Tracking a cyber exposure score helps organizations monitor security progress and changes over time.

If you’re unsure of your organization’s current cyber exposure levels, use the following strategies to assess them.

Attack surface mapping

Your attack surface is the total number of vulnerabilities or pathways an attacker could use to infiltrate your system. The more exposed assets you have, the larger your attack surface will be.

To better understand your current risk levels, you’ll need to map out your current attack surface. Your attack surface can be divided into three broad categories: digital, physical, and social.

• Digital attack surface — entry points in your digital systems or network, such as misconfigurations, outdated software, or poor access controls.
• Physical attack surface — entry points or vulnerabilities in your office or remote workspaces, such as lack of locks, cameras, or access protocols.
• Social engineering attack surface — entry points or vulnerabilities to phishing and other social engineering attacks. For example, attackers may set up a phishing domain that mimics a legitimate website to trick users into revealing sensitive information. Employees without cybersecurity training or awareness significantly increase this risk.

To map your attack surface, identify which assets are exposed and how they connect to each other. Start by listing all your digital assets and identifying possible vulnerabilities.

• Endpoints — computers, mobile devices, routers, printers, point-of-sale devices.
• Digital network assets — firewalls, gateways, domains, IP addresses.
• Software — operating systems, SaaS platforms, traditional hosted or on-premise platforms.
• Data storage — on-premise and cloud servers.
• IoT devices — smart appliances, security systems, industrial sensors, wearables.
• Teams — employees and contractors who use your systems.

Each of these assets could represent a potential attack vector if they aren’t properly secured. It’s also important to note that a vulnerability in one asset could affect your entire system. For example, if one software platform is out-of-date, it could give a tech-savvy cybercriminal access to your endpoints or even your entire network.

Vulnerability assessment and penetration testing

Once you’ve mapped your attack surface, the next step is conducting a thorough vulnerability assessment. This step will help you identify potential weaknesses that need to be addressed in your future cybersecurity strategy. The process uses automated scanning tools to find system vulnerabilities you might have overlooked in a manual assessment.

To ensure that no weaknesses are overlooked, you’ll need to conduct both internal and external vulnerability scanning. External vulnerability scans pinpoint ways that cybercriminals could get into your systems. Internal scans, on the other hand, focus on the vulnerabilities deeper in your system that cybercriminals could exploit once they get access.

Another essential strategy for measuring your cyber threat exposure is penetration testing. This is the process of simulating a cyberattack to test your system’s defenses and ensure you’re prepared for real-life threats.

Pen tests are typically conducted by third-party ethical hackers. Ideally, these contractors should have minimal prior knowledge of your systems because this test simulates real-life cyberattack conditions.

Ethical hackers will try various strategies throughout the pen testing process, such as social engineering, brute-force attacks, and SQL injections. However, they won’t cause damage once they’ve made it into your systems. Instead, they will document the vulnerabilities they find so you can improve your future cybersecurity strategies.

Threat intelligence and monitoring

External cybersecurity threats are always evolving because cybercriminals develop new strategies. You’ll need to collect threat intelligence and implement ongoing monitoring to stay one step ahead.

To do this, you’ll need to collect data from across your systems. You’ll also need to implement 24/7 system monitoring tools if you haven’t already. This approach will help you identify network activity patterns and vulnerabilities.

Then, compare data from your systems to information about current and emerging threats. One way to do this is by scanning dark web forums for possible threats. Identify which threats are most likely to impact your organization. This information will help you better assess your cyber exposure and adjust your cybersecurity strategy accordingly.

Compliance and regulatory considerations

An often-overlooked part of cyber threat exposure is compliance with cybersecurity frameworks, legal standards, and industry best practices. If you aren’t compliant with these systems, your cyber exposure will be higher than that of an organization that prioritizes compliance.

For example, organizations in the European Union will need to comply with the General Data Protection Regulation (GDPR), a law that standardizes consumer data protection. Additionally, certain sectors must adhere to NIS2 requirements. Many countries in other parts of the world have similar data protection requirements.

Adhering to compliance standards and regulations is necessary to avoid fines and legal action. However, it’s also a necessity to reduce your cyber threat exposure.

How to reduce cyber exposure

Reducing your cyber threat exposure helps you maintain a safe digital environment and protect your organization’s most valuable data. If your current cyber exposure levels are higher than you would like, here’s what you can do to reduce them.

1. Strengthen access and network security

Start by limiting who has access to your networks and systems. Implement stronger password and multi-factor authentication requirements. This step will reduce the chances of a hacker “guessing” employee login details using brute-force attacks.

On top of that, make sure to limit access for employees and contractors based on their responsibilities, rather than giving everyone access to the entire system. When employees or contractors leave, be sure to remove their credentials right away to limit your exposure.

In addition to implementing stronger access controls, monitor your network for suspicious activity. Investing in 24/7 monitoring and intrusion detection will help you identify and neutralize threats as soon as they happen. You should also supplement this with other network security protection tools, such as firewalls, antivirus software, and endpoint detection and response.

2. Protect data and maintain systems

Your systems and data are the backbone of your operations, and if they’re compromised, it can have serious consequences for both your customers and your business. To protect them, start by scheduling regular backups and implementing data loss prevention tools. Your data should always be backed up to a different system than the one you’re using.

You’ll also need to set up a schedule for system maintenance. Use patch management tools to determine when your software programs need to be updated. Additionally, take a full inventory of your digital assets on a regular basis and remove unused services and accounts. This is an easy way to reduce unwanted cyber exposure and keep your systems lean at the same time.

3. Strengthen resilience with policies and training

One component of cyber risk exposure that’s often overlooked is employee training. If your team isn’t up-to-date with cybersecurity best practices, they could accidentally expose data or fall victim to social engineering messages.

Conduct regular training sessions on cybersecurity best practices and implement policies that employees can reference. Additionally, make sure to develop a documented incident response plan and a business continuity plan to help your team spring into action if an attack happens.

4. Manage third-party vendor risks

Working with third-party vendors and contractors is necessary for many businesses but can increase your cyber exposure. Before working with a new third-party service provider, conduct a full cybersecurity assessment to ensure they are safe to work with. You may also want to sign a cybersecurity agreement with vendors before your partnership starts.

How to approach exposure management

Taking a structured approach to cyber threat exposure management is necessary to ensure that no vulnerabilities are overlooked. Evaluating and reducing your cyber exposure should become a routine and repeatable part of your security strategy. Let’s break down how to approach it.

Core principles of cyber exposure management

Cyber exposure management has a few core principles, many of which we’ve already touched on in this article. These include:

• Digital asset inventory. Take a full count of all digital assets, making adjustments as needed.
• Attack surface mapping. Build a visualization of your system’s entire attack surface, identifying possible vulnerabilities.
• Risk prioritization. Identify which risks are most dangerous and decide which vulnerabilities to address first.
• Mitigation strategies. Take steps to strengthen your security posture and prevent cyberattacks before they happen.
• Continuous monitoring. Monitor your systems for threats or unusual activity so you can respond right away.

The role of exposure management frameworks

An exposure management framework is a system that helps organizations track and control their cyber threat exposure levels.

Notable exposure management frameworks include Threat and Exposure Management (TEM) and Continuous Threat Exposure Management (CTEM). Both frameworks focus on identifying vulnerabilities and preventing cyberattacks before they happen. However, CTEM focuses on continuous, ongoing processes to keep exposure levels consistently low.

Leverage security automation to prevent cyber exposures

Reducing your cyber threat exposure is a complex process, but security automation tools can make it more efficient. Today, plenty of software programs on the market can help you scan your systems for vulnerabilities and identify areas to improve.

For example, NordStellar is a threat exposure management platform that helps to identify external vulnerabilities. By investing in your cybersecurity tech stack, you can automate essential tasks like system scanning and monitoring, reducing your cyber exposure thoroughly and efficiently.