Digital risk protection (DRP) is the practice of protecting organizations from cyber threats during digital transformation.
Rather than reacting to cyber threats after they're discovered, cybersecurity strategies must shift to a proactive approach to protection. This is the key to supporting ecosystem expansion while mitigating risk.
Digital Risk Protection was developed to fill meet this desperate requirement, starting from social media channels and extending to all digital assets exposed to potential threats,
What is Digital Risk?
Digital risk refers to all unwanted consequences that stem from an organization's adoption of new technology and expansion onto the public digital landscape.
It is an overarching concept that goes far beyond a simple breach, encompassing negative outcomes across five key domains: cybersecurity, operational, compliance, financial, and reputational consequences.
The negative outcomes of adopting new technology are difficult to predict. New solutions may introduce undetected vulnerabilities that cyber attackers may eventually exploit. Certain data processing conditions may also trigger new unpredictable data breach vulnerabilities. Digital risk protection aims to mitigate these undesired outcomes, allowing organizations to embrace the digital transformation necessary to scale in this fast-paced era fearlessly.
Key components of digital risk
Effective DRP requires a holistic view of the entire digital ecosystem. This perspective allows security teams to identify, prioritize, and mitigate risks that surface in the following domains:
- Reputational Risk: Damage to brand integrity and customer trust. For example, an attacker creates a brand impersonation account on social media or a fraudulent phishing website, leading customers to lose money and trust in the legitimate brand.
- Operational Risk: Consequences that disrupt business processes or inhibit growth objectives. For example, a system downtime caused by an unpatched vulnerability or an outage at a third-party vendor, results in halted customer service or production.
- Regulatory/Compliance Risk: Non-adherence to laws, regulations, and industry standards. For example, a compliance violation occurs when customer data is left exposed in an unmanaged cloud asset, resulting in potential fines under regulations like GDPR.
- Third-Party Risk (Vendor Risk): All risks introduced by service providers and third-party vendors. For example, a customer data breach that originates not from your network, but from a trusted vendor who has accidentally leaked your sensitive information, opening you up to legal liability.
Types of digital risk
To simplify the application of digital risk protection, all digital risks must first be categorized.
Every category of digital risk has an impact on cybersecurity, and because these risks occur along the digital landscape, disturbances within a single risk category could have ripple effects across all other categories.
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There are 9 types of digital risk:
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Cybersecurity
Refers to all risks of cyberattacks upon an expanding attack surface. The aim of most of these attacks is to access and exfiltrate sensitive data.
Data leaks
Though a subset to cybersecurity risks, data leaks should be a separate risk category because they're a prevalent by-product of digital transformation.
A data leak is the unintentional exposure of sensitive data that could develop into a data breach. During digital transformation, sensitive data often slips through the interface of the expanding digital landscape. This occurs because the digital landscape often expands faster than threat monitoring solutions can.
Organizations are at heightened risk of a data breach when they leak their own data and also when their vendors leak data. A data leak security solution should, therefore, be capable of monitoring data leaks both internally and throughout the vendor network.
Staff
Labor-related risks that could inhibit the growth objectives of a business. This could be include skills shortage, high employee turnover, payment disputes.
Third-party risk
All risks introduced by service providers and third-party vendors. This could include, data breaches, intellectual property theft, financial data theft.
Technology
Any risks that arise from cloud architectural amendments, the deployment of new platforms (such as IoT devices), or the implementation of new IT systems.
Compliance
Any risks associated with regulatory requirement non-compliance. Such risks are usually introduced with the adoption of new technology or the onboarding of vendors operating in highly regulated industries.
Process automation
Risks that arise when automation processes are modified, such as compatibility issues.
Process automation risks could arise from customer service improvement efforts, or the introduction of new business models.
Resilience
Any risks related to service availability after a disruption, such as damage caused by new technology or cyberattacks.
Data privacy
Refers to any risk affecting the protection of sensitive data. Such as personally identifiable information, financial information, etc.
Each risk results from a specific digital transformation initiative. The three primary expansion initiative and their corresponding risks are outlined below:
1) Increased operational efficiencies
Associated risks:
- Cybersecurity
- Staff
2) New business models
Associated risks:
- Third-party risk
- Cloud technology
- Compliance
- Process automation
3) Customer service improvements
Associated risks
- Resiliency
- Data privacy
For a more structured, in-depth approach to identifying, prioritizing, and mitigating these threats, refer to our comprehensive guide on the Digital Risk Management Framework.
How to mitigate digital risk
The scope of digital protection options is vast, but modern DRP shifts the focus from reactive incident cleanup to proactive, continuous mitigation. Accelerating these efforts involves implementing security solutions that provide visibility into vulnerabilities both internally and across the vendor network.
Proactive mitigation strategies and supporting tools
To implement these strategies effectively and achieve comprehensive, real-time threat monitoring, explore how a dedicated Digital Risk Protection Service can help.
Mitigating specific risk categories
- Mitigating cyber attack risks: These risks can be mitigated with an attack surface monitoring solution that identifies vulnerabilities both internally and throughout the vendor network. The implementation of a Zero Trust Architecture (ZTA) can also guard all sensitive data housing resources from unauthorized access.
- Mitigating third-party risks: To mitigate the considerable security risks introduced by third parties, each vendor should undergo a thorough risk assessment and be evaluated using a security scoring system prior to onboarding. A vendor data leak solution should be implemented to surface vulnerabilities that could be exploited in a supply chain attack.
- Mitigating cloud technology risks: Attack surface management solutions also monitor networked cloud solutions for security vulnerabilities. To further mitigate risks, cloud platforms should also be continuously monitored for data leaks that could develop into data breaches.
- Mitigating compliance risks: An organization in a heavily regulated industry should utilize an attack surface management platform to identify and address security issues that could compromise regulatory requirements. The compliance of vendors can be ensured with a third-party risk management solution that is capable of producing risk assessments for all relevant compliance categories, such as GDPR compliance.
- Mitigating process automation risks: Process automation risk assessments will evaluate the efficiency and resilience of all automation strategies to ensure optimal performance and mitigate associated risks. They should evaluate operational efficiency, compatibility, human labor requirements, and the positive and negative effects on overall business productivity and customer service.
- Mitigating business resilience risk: Having a clear and regularly updated business Response Plan on hand maximizes service availability, even after a data breach.
- Mitigating data privacy risks: To mitigate data privacy risks, all resources housing sensitive data need to be secured through methods like implementing honeytokens, securing privileged access management, or using a Zero Trust Architecture.
UpGuard supports all these strategies through its real-time monitoring capabilities. By providing continuous visibility into the internal and external attack surface, as well as the vendor network, UpGuard can detect data leaks and vulnerabilities and ensure they are remediated before they develop into data breaches.
Digital Risk Management Framework
A formal digital risk management framework is essential for breaking down the requirements of each mitigation initiative and identifying the most suitable risk solutions. By processing all categories of digital risk through a structured approach, organizations can determine the best course of action required to mitigate each identified threat.
5-Step DRP framework
This lifecycle approach ensures that DRP is a continuous, evolving program, not a one-time audit.
To demonstrate the application of this framework, consider an example of a law firm concerned about the security of their vendors.
To discover the best course of risk mitigation action, the problem is fed through the digital risk management framework and broken down in the following way:
- Type of risk: Third-party risk
- Goal: Seamlessly deliver legal services with the support of a third-party vendor network while mitigating security risk from third-party relationships. This secure workflow can be achieved without the need for a dedicated internal resource for cybersecurity efforts.
- Visibility and insights: Achieving this goal requires visibility into each vendor's security posture to evaluate the risk of third-party breaches. Since law is a heavily regulated industry, each vendor's level of regulatory compliance needs to be assessed.
- Action: Improve third-party risk management by implementing an attack surface monitoring solution for both the internal and external network. This solution should prioritize remediation efforts for vulnerabilities most exposed to external access and, therefore, at the highest risk of exploitation. Because legal services are a heavily regulated industry, a digital risk protection solution should be capable of mitigating non-compliance resulting from poor vendor security practices.
- Result: Entrust cybersecurity experts with the complete scope of vendor security through the integration of a Third-Party Risk Management service. This will expedite data breach resilience and compliance throughout the third-party network without affecting internal resource distribution.
How to manage digital risks
Digital risk protection efforts should prioritize cybersecurity and data leak risk categories, as these are generally the most detrimental when exploited. Managing these risks is an ongoing process best achieved through automation, integration, and continuous optimization.
For organizations with complex digital landscapes, investing in a Digital Risk Protection Service (DRPS) can often achieve greater financial efficiency than relying solely on dedicated internal resources.
Executing a digital risk protection program
Effective DRP is a cycle of detection, response, and refinement.
Continuous Monitoring through AI and Automation
Modern DRP relies on technology to keep up with the expanding digital attack surface.
- Continuous asset monitoring: To keep vulnerable assets protected, they must be continuously monitored for potential breach attempts. This includes monitoring for unauthorized access attempts across social media channels, Git repositories, and the dark web.
- Layered defense: Implement a threat intelligence solution and a data leak monitoring solution in parallel.
- Data leaks are detected and remediated before they develop into data breaches.
- Vulnerabilities are continuously strengthened to protect critical assets in the event of a breach attempt.
- Attack surface reduction: The attack surface should always be kept as minimal as possible. Perform an audit of internal assets exposed to the external landscape and remove all unnecessary cloud solutions.
Integrating Response Workflows
Continuous monitoring is only useful if findings lead to immediate action.
- Response workflows integrated with SOCs: DRP alerts must be fed directly into your Security Operations Center (SOC) for immediate triage and action. This integration allows teams to quickly prioritize and execute remediation efforts for vulnerabilities.
- GRC System Alignment: Risk data and compliance reports from DRP should be fed into Governance, Risk, and Compliance (GRC) systems to inform policy updates and track adherence to regulatory requirements, such as GDPR.
Ongoing Optimization
Optimization ensures the DRP program keeps pace with digital change.
- Asset inventory updates: Regularly audit the internal and third-party landscapes to identify current and historical vendor relationships and maintain an up-to-date asset inventory.
- Breach simulation: Conduct internal testing or breach simulations to test the effectiveness of existing controls and the readiness of the Business Response Plan after suffering a data breach.
DRP in the real world
DRP solutions provide the visibility needed to move from theoretical risk to actionable mitigation, preventing major financial and reputational incidents.
Case 1: Preventing a major brand impersonation
A financial services company was struggling to manually track hundreds of social media accounts and lookalike domains. Their DRP solution automatically detected a fraudulent website using the company’s branding and a lookalike domain name, allowing the legal team to issue a takedown notice immediately before any customer data was compromised through phishing or fraud. This saved the company from potential liability and severe reputational damage.
Case 2: Mitigating third-party exposure
A technology firm was preparing to integrate a key software component from a new vendor. A real-time vendor risk assessment, conducted as part of the DRP process, identified an exposed Git repository belonging to the vendor. The repository contained hard-coded API keys that, if exploited, could have granted an attacker access to the tech firm’s production environment. The firm delayed integration until the vendor remediated the vulnerability, effectively preventing a catastrophic supply chain attack.
Future trends in digital risk protection
As technology evolves, so too do the risks. DRP is rapidly changing to address new AI-driven threats and regulatory demands.
- The rise of AI-powered impersonation: Generative AI is increasingly used to create sophisticated, highly convincing deepfake voices and videos. These deepfakes can be used for targeted social engineering attacks on employees or to create fraudulent ads for brand impersonation. DRP solutions must evolve to use AI-driven anomaly detection to identify and flag this type of highly realistic digital fraud.
- Increasing overlap with cyber insurance: Cyber insurance is moving from an optional business expense to a regulatory necessity. Insurance providers are demanding higher security standards and proof of proactive DRP practices—such as continuous attack surface and vendor monitoring—before they will underwrite policies or pay claims. DRP serves as a quantifiable and demonstrable record of proactive risk mitigation, often making it a prerequisite for obtaining comprehensive coverage.
- Automation in digital risk detection and response: The future of DRP is focused on fully automated workflows. This involves the further evolution of security orchestration, automation, and response (SOAR) platforms to handle the entire lifecycle of external risks, from the automated detection of an exposed cloud asset to the automatic creation of a remediation ticket in the IT system, and finally, the automated verification of the fix. This shift enables security teams to focus on strategy rather than manually chasing alerts.
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