Outsourcing is nothing new in the business world. There are certain jobs that are simply outside the scope of what a business might do, so they turn to specialized companies to get the job done for them. As companies learn to operate in the digital age, many of these companies are required to allow network access to these third-party companies to make full use of their services.
In a recent CyberRisk Alliance survey, Trava polled 301 IT and cybersecurity professionals who have worked with outside vendors to assess the volume of outsourced work and the frequency of cyber attacks as a result. The survey found that 95% of companies partner with IT software, platform, or service providers. Over 75% of them contract with up to 25 different outside vendors.
One of the core issues is the assumption that SaaS companies will come packaged with adequate security measures. This can cause businesses to overlook the necessary precautions in order to utilize the product or service as quickly as possible.
Security breaches and other cyber attacks rely on the lack of secure access points to a network. This is why every entity that has access to a given network needs to be adequately protected. If one vendor has poor security in place, then the entire network is at risk. A chain is only as strong as its weakest link, and this old cliche rings especially true when dealing with third-party cyber security. Small and mid-sized businesses are at an increased risk due to the lack of security resources they often have.
There has been an increase in concern about third-party cyber risk since 2020, according to industry reports. There are many organizations that have learned the hard way about third-party risk.
The following three approaches can help you protect your business against cybercrime:
1. Self-healing is the best medicine
The first step in cybersecurity is protecting your own data and that of your customers.
- Assessing the situation is the first step
- Identify and mitigate vulnerabilities
- Prioritize based on the severity of risk
- Assessing and mitigating needs to be done on a regular basis.
2. A rise must be followed by a fall
You are not the only one who practices safety…
- Your cybersecurity picture will be incomplete without a clear understanding of vulnerabilities and mitigation efforts.
- Obtain information about the protocols used by vendors.
- You should ask vendors the same questions you ask yourself.
3. Big Business Can Teach Us A Lot
Cyber due diligence is being performed by enterprise organizations to vet potential vendors.
- CyberRisk Alliance’s survey found that only 45% of respondents used the NIST Cybersecurity Framework.
- A SOC2 attestation or ISO 27001 compliance certificate may be requested. It is also possible to request proof that they meet these standards even without official documentation.
- You must ensure your prospective partners prioritize cyber safety and can prove it regardless of the option you choose.
- It is common for organizations to stipulate cybersecurity requirements in their contracts.
- Cyber risk is real and ever-changing, regardless of the size of your business.
- A long list of partners, contractors, vendors, service providers, suppliers, distributors, and agents contribute to your risk landscape.
- Your own cyber risk protocols should include regular check-ins with them.
- You should remember that cyber risks are business risks.
Are You Looking for Cyber Protection?
Trava can help you determine the right insurance policy and amount of coverage for your needs. Contact Trava today.