Key Points

• An insider risk management policy safeguards against internal threats by defining clear procedures to identify, monitor, and address suspicious behaviors.
• Without an insider risk management policy, businesses face severe threats, including data leaks, non-compliance penalties, fraud, sabotage, and espionage.
• Metomic enhances data security through automated data classification, access control, real-time alerts, and compliance support, offering organisations the tools to prevent and respond to insider threats effectively.

With 83% of organisations reporting at least one insider attack in 2024, the threat of sensitive data being leaked is overwhelmingly high.

An insider risk management policy can help an organisation establish the risks they should be monitoring, and the teams involved in resolving any insider risks detected.

In this article, we look at what an insider risk management policy is, and how it can benefit organisations seeking to protect their sensitive data.

What is an insider risk management policy?

An insider risk management policy protects your business from malicious or accidental internal threats.

Whether the risk is posed by employees, partners, or third party contractors, data can be exposed in a number of ways. For example, a negligent employee may share customer information with a colleague in a Slack channel to expedite a query, while a contractor with malicious intent may download files to blackmail a company in the future.

Creating a policy establishes guidelines for individuals to identify insider threats, and ensure they are continuously monitored, minimising the financial and reputational risk to the organisation. It should give clear procedures for staff to follow so that an insider risk can be identified effectively, and should outline how suspicious behaviour should be investigated, so that legal duties are fulfilled, and the business remains aligned with compliance requirements.

Who is responsible for creating it?

The creation of an insider risk management policy should be led by a CISO (Chief Information Security Officer) with input from other departments such as Legal, Compliance, and HR.

It may also be worthwhile getting investment from individuals in the Senior Leadership Team, to ensure alignment with business goals, and highlight that security is a priority within the business as a whole.

The insider risk management policy should be an ever-evolving document that reflects the business’ priorities, the teams involved, and the legal requirements the organisation should be complying with.

What is the goal of an insider risk management policy?

An insider risk management policy aims to identify insider threats, mitigate the risks to the business, and prevent future incidents. It should encompass employees, contractors, and business partners, to ensure sensitive data is appropriately safeguarded and critical systems aren’t accessed by unauthorised users.

This type of policy should not only consider malicious entities, but should also account for negligent employees who account for 62% of insider risk incidents.

What are the dangers/risks?

Without a management policy in place, the organisation is put at serious risk of insider threats exposing sensitive customer or business data.

Significant risks can include:

1. Data leaks: Sensitive data can be stolen and sold on the dark web by malicious individuals, or exposed by negligent employees who are trying to work at speed.
2. Non-compliance with industry regulations: If sensitive information is mishandled by employees, it can put the entire organisation at risk of legal action and financial penalties.
3. Internal sabotage: As insiders have access to internal systems, they are capable of disrupting business processes, leading to a downtime in business proceedings and financial losses as a result.
4. Fraud: An insider threat could manipulate company records, or embezzle funds which can put the company at risk of legal and financial implications.
5. Damage to company reputation: A leak of confidential information can harm customer trust, and lead to a loss in revenue as customers seek out an alternative company they can trust.
6. Espionage: Disgruntled employees or contractors may be spying on the organisation for competitors so having access to sensitive data can be very beneficial for the individual, but hugely damaging to the company.

How can security teams get buy-in?

Getting buy-in from the rest of the business can be a big feat for security teams, who must ensure they can convey the importance of preventing insider threats effectively. Here are some ways security teams can ensure they have buy-in from the wider team:

1. Highlight the risks

The biggest way to make an impact when attempting to get support from other teams is to show exactly how compromised the business will be, if no action is taken. This can be done via real-world examples that demonstrate the financial, reputational, and operational impact of insider threats within your industry.

2. Stay aligned with overall business strategy

If this project can be aligned with existing business goals, it can show that this is already a priority for the team. Whether it’s maintaining customer trust, ensuring regulatory compliance, or protecting company assets, an insider risk management policy can move the company closer towards these targets by mitigating the threat from malicious or negligent individuals.

3. Give an estimated ROI

With senior members of the business focusing on budgets, quantifying ROI can make a big difference to whether security teams can achieve buy-in or not. Demonstrating the financial impact of putting a proactive insider risk strategy in place can be helpful, particularly when it comes to avoiding breaches or compliance fines.

4. Use clear language

Although it may be tempting to use technical jargon, this can lead to misunderstandings. Using clear, concise language that non-technical stakeholders understand is key to explaining the financial and operational risks of not having an insider risk management policy in place.

5. Offer scalable solutions

Propose scalable, phased implementations that can grow with the organisation, allowing the team to manage costs and show incremental success, rather than demanding significant upfront investments, and big changes within the team.

10 crucial steps for creating an insider risk management policy

Here are 10 steps to follow to create a comprehensive insider risk management policy:

1. Define insider risks

Identify the types of insider threats you need to cater for in your policy, such as malicious insiders (those with intent to harm) and negligent insiders (unintentional risks). Common risks your organisation might face could include data theft, intellectual property leaks, fraud, or policy violations.

2. Establish clear objectives

Set your goals for the policy, such as preventing unauthorised data access, detecting suspicious behavior, or minimising damage from insider threats. Make it clear that the policy aims to protect both the organisation and its employees while promoting trust.

3. Identify your most critical assets

Data classification can help you label your most important data based on sensitivity (e.g. public, confidential, highly confidential) so the appropriate safeguards can be put in place. This can help to determine which assets are most valuable or vulnerable, such as intellectual property, financial data, customer information, or strategic plans.

4. Set access controls

Using Role-Based Access Control (RBAC) and Multi-factor Authentication (MFA) to manage and restrict data access can help keep unauthorised users away from the most sensitive data, minimising the risk of data being leaked.

5. Deploy continuous monitoring

Utilise monitoring tools to detect unusual or suspicious behavior, such as excessive downloading, access to restricted files, or data transfers outside of normal working hours. Automated alerts can be beneficial for security teams to detect unauthorised access attempts or high-risk activities, such as copying sensitive files to external devices or cloud storage.

6. Define reporting procedures

Create clear processes for reporting suspected insider threats, with channels that allow employees to report incidents confidentially or anonymously. The role of specific teams such as security, IT, and HR, should be outlined in handling reports of insider risks.

7. Implement employee training

Specify how employees will be trained on security best practices, acceptable use policies, and insider threat awareness. Ensure employees understand their roles in protecting the organisation's data and the consequences of policy violations.

8. Establish a remediation plan

Put together a clear response plan for handling insider incidents, including identifying the threat, containing the damage, and conducting an investigation. Include legal, IT, HR, and management teams in your response planning, and outline steps for disciplining or terminating malicious insiders, if necessary.

9. Define a regular review schedule

Conduct periodic audits and reviews of access logs, security controls, and insider risk management policies. Regularly update the policy to reflect new risks, technologies, or changes in the organisation's structure or compliance requirements.

10. Consider legal and compliance requirements

Ensure the policy aligns with legal requirements and industry standards, such as GDPR, HIPAA, or PCI DSS. Consult with your Legal department to ensure that monitoring activities comply with privacy laws and regulations in your region.

Once you’ve followed all of these steps, you should document the policy, outlining all aspects of the insider risk management policy, including definitions, access control mechanisms, monitoring tools, and response procedures. Make the policy accessible to all employees, and require their acknowledgement to ensure understanding and compliance.

How can Metomic help?

Metomic can help organisations manage insider risks and enhance data security through several key capabilities:

1. Automated Data Classification: Metomic automates the classification of sensitive data across SaaS platforms like Google Drive, Slack, and others. By identifying and labelling confidential information in real-time, Metomic helps enforce access controls and security policies, ensuring that sensitive data is protected from insider threats.
2. Access Control and Monitoring: Metomic helps security teams monitor and control who has access to sensitive data, preventing unauthorised access and sharing. This is critical for minimising insider risks, particularly in collaborative environments where data sharing is frequent.
3. Real-Time Alerts and Incident Response: Real-time alerts can help security teams identify when sensitive data is mishandled or shared improperly, allowing them to respond quickly to potential insider risks. This reduces the window of vulnerability and helps mitigate damage.
4. Compliance Support: Metomic helps organisations meet regulatory requirements (like GDPR, HIPAA) by ensuring sensitive data is classified, monitored, and protected in line with compliance standards. This reduces the risk of penalties related to insider data breaches.

To find out more about how Metomic can protect your sensitive data, get in touch with one of our data security experts, or request a free risk assessment for your SaaS applications.