Mitigate Third-Party Cyber Risks

Today we are operating in a data-driven landscape where information is a prized asset. With the increasing reliance on third-party vendors for data management, organizations must ensure the security and privacy of customer data. According to the 2023 IBM Cost of a Data Breach report, 15% of organizations reported that an internal data breach originated with an attack on a service provider, making this one of the top four types of malicious attacks reported.

The potential risks are extensive, especially when considering that many companies rely on service providers who have access to their cloud systems for various applications and services. Any access granted to these third-party vendors can potentially be exploited by hackers. What's even more concerning is that this risk extends to "fourth party" vendors, whom you might not know much about, but may have indirect access to your data ecosystem.

So, what is the solution? How can organizations safeguard against such pervasive threats?

Effective vendor management is the key. By evaluating your vendors before and during your work with them, you can substantially reduce your organization's security risks. A comprehensive vendor management policy should be at the heart of your strategy, enabling you to tackle the challenges associated with third- and fourth-party vendors. Here are some specific strategies that organizations can implement:

Cybersecurity Attestation Reports: Request these from your vendors to gain a deep understanding of their security controls.

• These reports provide a clear picture of the measures in place to protect your data and give you peace of mind that your partners are as committed to cybersecurity as you are.

Cybersecurity Requirements in Contracts: Integrate stringent stipulations into your contracts. These should encompass critical aspects such as incident response procedures, data protection and privacy compliance, conditional access and authentication protocols, and third-party risk management strategies.

• This proactive approach ensures that your vendors are not only aware of your expectations but are contractually obliged to meet them.

Regular Monitoring: Continually review and audit your vendors' security practices. As technology evolves, so do cyber threats.

• Regular assessments of your vendor's security measures help to ensure that they are adapting to the ever-changing landscape of cybersecurity.

A robust vendor management policy not only ensures compliance with data protection standards but also minimizes the substantial risks associated with outsourcing services. The specific cybersecurity requirements outlined in a given policy will naturally depend on the nature of the vendor's services and the sensitivity of the data they handle.

Center efforts around these best practices to take control of third-party network access security. A proactive approach will not only protect customer data but also bolster an organization's reputation and trustworthiness in an age where data privacy and security are of paramount concern.

Understand the Cyberthreats Confronting Your Business

In the realm of cybersecurity, vigilance is no longer an option. The disruptive nature of the cybersecurity landscape calls for understanding the latest threats and proactively countering them to stay one step ahead of cybercriminals and safeguard an organization's digital assets.

Recent trends in cyberattacks, based on insights from the Verizon Data Breach Incident Report (DBIR) and the FBI Cyber Incident Report, coupled with real-life experiences within our own client and prospect base, provide a stark depiction of the severity of these threats and the urgency of robust defense strategies.

Here are some of the specific cyberthreats that pose significant risks to SMBs:

• Business Email Compromise (BEC): According to the FBI Cyber Incident Report, BEC attacks represent a growing concern. Cybercriminals adeptly impersonate businesses to trick employees into compromising security. This results in significant financial losses through fraudulent wire transfers, leading to staggering losses of $10.3 billion in 2022 alone. These attacks are not just theoretical; they hit the core of an organization's financial stability.
  
  
• Phishing Emails: Phishing remains the primary entry point for cyberattacks. These deceptive emails are designed to trick users into clicking malicious links or downloading harmful attachments. And now, cybercriminals have upped their game by using AI to make phishing attempts more convincing, targeting employees, who are historically an organization’s weakest link.
  
  
• Spoofing: Cybercriminals use fake phone numbers or email links that seem legitimate but lead victims to malicious destinations. Cybercriminals have high ingenuity that knows no bounds, so vigilance is the ultimate defense.
  
  
• Social Engineering: Cybercriminals are using sophisticated schemes, including fake job offers and celebrity impersonations, to manipulate individuals. Falling victim to these schemes can compromise an organization's reputation and data integrity.
  
  
• Fake Tech Support: Unexpected calls from purported tech support teams are a tactic employed by cybercriminals to gain unauthorized access to systems. In this technique, vigilance is required not only in the digital realm but also in the physical world.

The cyberattack landscape has evolved with the rise of cryptocurrency exchanges, which facilitate the theft and transaction of stolen assets, adding another layer of complexity to the cybersecurity challenge.

Considering these threats, security measures need to encompass ongoing vigilance, comprehensive security awareness training, fake phishing campaigns to educate and prepare employees, and round-the-clock security monitoring to detect and respond to threats in real-time.

Vigilance is an organization's best defense against these evolving threats. By recognizing the gravity of these risks and taking proactive steps to mitigate them, organizations can enjoy a future where digital assets remain secure and data remains intact, standing resilient in the face of ever-adapting cyberthreats.

Unlock the Value of Your Data

In today's Digital Age, the importance of robust data management is increasingly recognized. Leadership plays a pivotal role in influencing a structured approach to data management that is crucial for maintaining a competitive edge. The challenge encountered by many organizations lies in navigating the dynamic nature of data, distributed across disparate locations, and determining the optimal path to strategically centralize that data for security and management. Below is a look at how to transform data from a potential liability into a strategic asset.

Data Management

This evolving challenge has taken on new dimensions in the Digital Age. Rapid access to data from various locations, not just the office, is critical for productivity. The questions to consider involve:

• Where does your data live, and is it strategically centralized for security, version control, and management?
• If data is scattered across multiple locations, how do you eliminate the risks of shadow IT?

A best practice is to converge data into a singular location, such as cloud solutions like Microsoft Azure and SharePoint. Leadership must ensure data management has a structured approach within their organization to maintain productivity, data security, and a competitive edge.

Data-Driven Decisions

Companies are sitting on vast troves of data, often distributed across diverse locations and silos, with untapped insight potential. The challenge is to harness this data for informed decision-making. Questions to consider surrounding your data insights include:

• How effectively are you using your data to drive business decisions?
• Are your teams equipped to consume and use the data for strategic purposes, including integration with third-party applications?

Successful navigation of this trend involves the ability to visualize data on demand. Tools like PowerBI, facilitate secure data sharing, integrate data through API technology, and employ dashboards and reporting for various functions, from financial modeling to asset management. The effective utilization of data-driven decision-making can contribute to competitive positioning, operational efficiency, and risk management, which is vital for steering the organization toward sustained success in a data-centric business environment 

Process Automation

For common and repeatable manual processes, workflow automation can be put in place to streamline operations, creating efficiency and precision. The aim is to eliminate data duplication, human errors, and wasted time. Organizations can automate these manual processes through predefined milestones and hand-offs and eliminate paper-based processes and disparate Excel spreadsheets that slow productivity.

Consider how tools like the Microsoft PowerApps suite can be used to build custom workflows, whether it's for employee onboarding, client acquisition, or internal office management. Automation drives operational excellence and boosts productivity.

Collaboration

Effective collaboration tools are instrumental in achieving strategic alignment, optimizing operations, ensuring transparency and accountability, fostering a positive organizational culture, and adapting to modern work practices. Organizations can foster collective contribution when they put away the old habit of emailing documents and encourage real-time collaboration. By enabling co-authoring, you can keep track of version history for greater transparency and accountability. Tools like Microsoft Teams, WebEx, and Slack have become essential in the workplace, while specialized solutions like Viva Engage, are being used to enhance cultural interactions within organizations. Microsoft's AI suite, labeled Copilot, is gradually becoming available in products like the Edge browser and Windows 11, with plans for integration into Microsoft 365 Copilot for Teams and the Office suite this year. Once available, access to Copilot will require Microsoft 365 licensing and an additional Copilot licensing cost. A collaborative environment ensures that every department is on the same page, working seamlessly toward shared goals. A collaborative environment is a linchpin for organizational success, driving innovation, efficiency, and cohesiveness across all levels of the organization.

Data is one of the most valuable assets in the Digital Age. Good data hygiene, including centralized storage and effective data utilization, is a crucial step in embracing digital transformation. Many organizations likely already have the tools necessary to unleash the full potential of their data. As you consider these trends, ask whether your organization is leveraging data as a strategic asset or simply carrying it along as a potentially expensive liability?

Cyber Frameworks: Improve Your Cyber Maturity

Aligning your organization with a framework promotes a cycle of continuous improvement through regular assessments, audits, and updates based on the evolving threat landscape. This coordinated model helps organizations stay ahead of emerging risks and vulnerabilities.

How do you know if you are doing the right things?

• Identify what you should be doing: Compose and maintain an inventory of assets, users, and business processes driven by IT based on your industry or region’s specific cybersecurity compliance requirements.
  
  
• Prioritize the criticality of each risk: By following a structured approach, organizations can better understand their threat landscape and allocate resources based on budgets and core risks.
  
  
• Evaluate, document, and follow a framework (NIST CSF, HIPAA, NCUA, GLBA, etc...): Frameworks are adopted to help provide a standardized and consistent approach to cybersecurity while ensuring time and money are used efficiently and effectively. When security measures are applied uniformly across an organization, the likelihood of oversight or gaps in protection is reduced.
  
  
• Know where you stand: The first step toward organizational cyber maturity is to measure your current state. This can be done with high-level directional guidance on your organization's overall cybersecurity maturity to identify any gaps, resulting in a phased plan to strengthen your security posture.

At Systems Engineering, we find adhering to a recognized cybersecurity framework helps organizations stay proactive and adapt quickly to new cyberthreats. It also demonstrates a commitment to security which enhances stakeholder trust and confidence.  If you are not following a framework, commit to advancing your cyber maturity in 2024.