Are you Safe from Cyber Risk?

Many companies outsource their business activities. Like distribution, service provider, contracting, agents, etc. All these outsourcing make your business more prone to cyberattack or risks. The cyber risks increase. As anybody from the outsourced activity can have access to your data. It is harmful to the authenticity and business image.
According to the survey conducted in January 2022 by CyberRisk Alliance of 301 companies in IT and cyber security, 95% of companies outsource their business activities. Moreover, three-quarters or more of the surveyed sample have a contract with approximately 25 different companies.

Cyber Security

Before, people used to assume that the companies have set cyber Security software like SAAS as these companies came into being in the digital age. Moreover, it is still easy to ignore the cyber risk to avoid any costly delays and go directly to marketing to take the returns. More people are prone to not take the detailed security check seriously for their business.

It is said that a company’s cyber security is as good as its supplier or vendors’ cyber security. In case anybody has access to your company data, internet connection, or network. It means that a major threat exists. And it makes your company vulnerable to loss. Moreover, if anyone breaches the data then you can suffer the loss of thousands. And it can go to hundreds of thousands. As you have to go through shutdowns, lawsuits, and damaged goodwill or reputation.

Moreover, it is said that there are lesser chances for small or medium-sized businesses to have a cybersecurity plan for them. They are not even sure about their vendors’ security plan as well. Thus, these potential costs can lead to major losses and the ultimate closure of business.

Third-party Cyber Risk

Third-party cyber risk has increased since the year 2020. This was known from the industry report. It shows that many organizations learned and experienced the third-party cyber risk a hard way as they had to go through a complete process.

A prevalence study shows how 83% of respondents said that the organization was more focused on the third-party cyber risk in the times of a pandemic. There were many problems with suppliers and vendors.
CENTRL indicates that the damage caused to infrastructure was due to the ineffective vendor risk management. That is called third-party risk management. This problem received much attention now as it helps to eradicate the potential cyber risk.

Cyber risk alliance shared in 3 in 5 of their surveys. That they have faced a cyber-risk situation where a third party vendor had access to the data. They misused it and stole sensitive information that disrupted our businesses.

Tips or Ways of Cyber Risk Management

A cyber risk management plan pushes the organization to keep keen attention on third-party cyber risks. Following are some tips that help you. To better manage your cyber risk management plan:

  • Stay active for healing

Firstly, make your organization’s and your customer’s data secure by using the assessment process. It enables you to keep track of your data. It helps you to identify issues and then focus on them. To work for its solutions as hackers are trying their best to get into your data. So work daily for assessment and elimination of cyber risks.

  • Ask the same questions from your vendors

The cyber security process is not completed. Until you ask the same questions from your vendors that you ask yourself. It enables you to get a complete picture of both sides. And you are well equipped with the knowledge. What are the loose ends? And what do you have to improve? It enables you to work well toward the elimination of cyber risks. Hence, it covers the whole supply chain as well. More transparency will result in more safety. It enhances the chances of sustainability in the market.

  • Learn from other big businesses

Businesses and organizations of big sizes, commonly, enterprises have started the cyber security due diligence. It enables them to keep a track of the conditions and the situation of its vendors.

Cyber risk alliance survey, almost half of the respondents conveyed. That they are using the cyber security framework named NIST framework. It enables them to assess your third-party vendor.

Moreover, one can also request SOC2 attestation or the other option can be to request proof of compliance with ISO 27001. So whatever option or alternative of assessment you choose. You have to ensure that your vendors are also prioritizing cyber security. Moreover, they should be able to prove it.

You can also go for populating the terms and conditions of the cyber security management plan in your contract. No matter what your business size is, cyber risk is quite real regardless of the size. Moreover, cyber risk is changing over time.

If the partner list is long even then all these third-party vendors, partners, distributors, and agents. Come under the radar of the cyber risk landscape.

As cyber risk is one of the main business risks. Then you have to keep a regular risk assessment check-in with all these third-party vendors or partners.

Thus, it shows how important a cyber-risk management plan is for businesses, regardless of the size of the business. Hence, keep on working towards the elimination of cyber risk. The more consistent the cyber risk management plan application. The more increased the safety of the businesses. It ensures the long-term standing of the business and its profitability.