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XSS occurs when an attacker injects malicious scripts into a web page that is viewed by other users. These scripts are typically executed in the victim’s browser, potentially leading to unauthorized actions, data theft, and further compromises.

In cyber risk management, XSS is particularly concerning because it exploits trust relationships within a web application. For example, an attacker might inject a script into a comment section of a webpage. When another user views the page, the script executes, potentially stealing session cookies, redirecting the user to malicious sites, or altering the content of the webpage.

There are three primary types of XSS: Stored, Reflected, and DOM-based. Stored XSS
involves injecting malicious scripts into a web application that stores them in a database, leading to the script being executed whenever the stored data is retrieved. Reflected XSS occurs when the malicious script is reflected off a web server, often via URL parameters, and executed immediately in the victim’s browser. DOM-based XSS exploits vulnerabilities in the Document Object Model (DOM) on the client side, altering the structure of the webpage to execute the script.

Managing the risk of XSS involves a combination of secure coding practices, input validation, and output encoding. Input validation ensures that any data entered into a web application is thoroughly checked before being processed. Output encoding transforms potentially dangerous characters into a safe format before they are displayed on a webpage, preventing the execution of injected scripts.

From a broader risk management perspective, regular security testing, including penetration testing and code reviews, is essential to identify and mitigate XSS vulnerabilities. Employing Content Security Policies (CSPs) can also significantly reduce the risk by restricting the sources from which scripts can be executed.

XSS represents a critical concern in cyber risk management, necessitating a comprehensive approach that includes secure coding, vigilant monitoring, and proactive vulnerability management to protect web applications and their users from the potentially severe consequences of such attacks.

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