Cybersecurity Risk Management - How to Manage Third-Party Risks

Every day we are informed of data breaches that have exposed private data of hundreds of thousands, or even millions of people. These breaches are usually caused by third-party partners, such as a vendor who experiences a system malfunction.

Information about your threat environment is essential in defining cyber-related threats. This allows you to prioritize which threats need your most urgent attention first.

State-Sponsored Attacks

If cyberattacks are carried out by the nation-state, they have the potential to cause more damage than other attacks. Attackers from nation-states are usually well-equipped and have sophisticated hacking techniques, which makes it difficult to recognize them or defend against them. They are able to steal sensitive information and disrupt business processes. They can also cause more harm through targeting the supply chain of the company and inflicting harm on third suppliers.

The cost of a national-state attack is estimated at $1.6 million. Nine in 10 organizations think they've been the victim of an attack by a nation-state. Cyberspionage is becoming increasingly popular among nation-state threat actors. Therefore, it is more crucial than ever to ensure that businesses have solid cybersecurity companies (try what she says) practices.

Cyberattacks carried out by nation-states can take place in a variety of forms. They range from ransomware to Distributed Denial of Service attacks (DDoS). They may be conducted by government agencies, members of a cybercriminal outfit that is a part of or contracted by the state, freelancers employed to carry out a specific nationalist campaign or even criminal hackers who target the general public at large.

Stuxnet was an innovative cyberattacks tool. It allowed states to weaponize malware against their enemies. Since then, cyberattacks have been employed by states to achieve political, military and economic goals.

In recent years, there has seen an increase in the number and sophistication of attacks sponsored by governments. Sandworm, a group backed by the Russian government has targeted both customers and businesses with DDoS attacks. This is different from traditional crime syndicates which are motivated by the desire to make money. They tend to target both consumers and businesses.

Therefore responding to a threat from a nation-state actor requires a significant coordination with several government agencies. This is a major difference from the "grandfather's cyberattack" when a company could submit an Internet Crime Complaint Center Report (IC3) to the FBI but not be required to coordinate a significant response with the FBI. In addition to the greater degree of coordination responding to a nation state attack requires coordination with foreign governments which can be difficult and time-consuming.

Smart Devices

As more devices are connected to the Internet, cyber attacks are becoming more frequent. This increased attack surface can create security risks for both consumers and businesses. Hackers, for instance, exploit smart devices to steal data or compromise networks. This is particularly true when devices aren't properly secured and secured.

Hackers are attracted to smart devices because they can be employed for a variety of purposes, including gaining information about individuals or businesses. Voice-controlled assistants, cybersecurity companies such as Alexa and Google Home, for example can discover a huge amount about their users based on the commands they receive. They can also collect data about the layout of their homes as well as other personal data. Furthermore they are frequently used as an interface to other types of IoT devices, such as smart lights, security cameras and refrigerators.

If hackers gain access to these devices, they can cause significant harm to people and businesses. They can make use of them to commit a variety of crimes, including fraud, identity theft, Denial-of-Service (DoS) attacks and malicious software attacks. They are also able to hack into vehicles to spoof GPS location or disable safety features and even cause physical injury to drivers and passengers.

There are ways to minimize the harm caused by these devices. Users can, for instance, change the factory default passwords on their devices to prevent attackers getting them easily. They can also turn on two-factor authentication. It is also essential to update the firmware of routers and IoT devices regularly. Local storage, rather than cloud storage, can lower the risk of a hacker when they transfer and storing data from or to these devices.

It is essential to understand the effects of these digital threats on our lives and the best methods to limit their impact. Research should be focused on finding solutions to technology that can help mitigate harms caused by IoT. Additionally, they should investigate other possible harms, such as those related to cyberstalking or increased power imbalances between household members.

Human Error

Human error is one of the most frequent factors that contribute to cyberattacks. This can range from downloading malware to leaving an organisation's network vulnerable to attack. Many of these errors can be avoided by setting up and enforcing strong security controls. For instance, an employee might click on a malicious link in a phishing attack or a storage configuration error could expose sensitive information.

A system administrator can turn off the security function without even realizing it. This is a frequent error that makes software vulnerable to attack by malware or ransomware. IBM claims that human error is the main reason behind security incidents. It's crucial to understand the types of mistakes that could lead to an attack on your computer and take steps in order to prevent them.

Cyberattacks are committed to a variety of reasons, including financial fraud, hacking activism or to collect personal data, deny service, or disrupt critical infrastructure and essential services of a state or an organisation. State-sponsored actors, vendors or hacker groups are typically the culprits.

The threat landscape is complicated and ever-changing. Organizations should therefore regularly examine their risk profiles and revise security strategies to keep up with the most recent threats. The good news is that advanced technologies can reduce the threat of cyberattacks and improve the security of an organization.

But, it's crucial to keep in mind that no technology can shield an organisation from every potential threat. This is the reason it's essential to create an effective cybersecurity plan that takes into account the various layers of risk in an organization's network ecosystem. It's also crucial to regularly perform risk assessments instead of relying on conventional point-in time assessments that are easily erroneous or inaccurate. A comprehensive assessment of the security risk of an organization will allow for an efficient mitigation of these risks and will ensure compliance with industry standard. This will help to prevent costly data breaches as well as other incidents that could adversely impact the company's finances, operations and image. A successful strategy for cybersecurity company should include the following components:

Third-Party Vendors

Every organization relies on third-party suppliers that is, companies outside of the company who offer services, products and/or software. These vendors typically have access to sensitive data such as client data, financials, or network resources. When these companies aren't secure, their vulnerability can become a gateway into the original business's system. It is for this reason that risk management teams for cybersecurity are going to extremes to ensure that third-party risks can be identified and managed.

As the use of cloud computing and remote work increases, this risk is becoming even more of a problem. In fact, a recent study by security analytics firm BlueVoyant found that 97% of top companies for cyber security they surveyed had been negatively impacted by supply chain vulnerabilities. A disruption by a vendor, even if it only impacts a small portion of the supply chain, can cause a ripple effect that could cause disruption to the entire company.

Many companies have taken to creating a process which accepts new vendors from third parties and requires them to sign to specific service level agreements that define the standards to which they are held in their relationship with the company. In addition, a good risk assessment should include documenting how the vendor is screened for weaknesses, then following up on the results and resolving the issues in a timely manner.

A privileged access management system that requires two-factor authentication to gain access to the system is an additional method to safeguard your business against third-party risks. This will prevent attackers from getting access to your network through the theft of credentials.

Last but not least, make sure that your third-party service providers are using the latest version of their software. This will ensure that they haven't created any unintentional security flaws in their source code. Often, these vulnerabilities are not discovered and could be used as a basis for more high-profile attacks.

Ultimately, third-party risk is an ever-present threat to any business. While the aforementioned strategies can assist in reducing certain threats, the best method to ensure your third-party risk is minimized is by performing continuous monitoring. This is the only way to understand the state of your third party's cybersecurity and to quickly identify any risks that may occur.