Security | Threat Detection | Cyberattacks | DevSecOps | Compliance

The finance industry has the second highest average data breach costs at US$5.97 million per breach, according to IBM and Ponemon Institute’s 2022 Cost of a Data Breach report. While strict regulations force finance companies to invest heavily in protecting customer data, their third-party vendors don’t necessarily do the same. Finance security teams need a proactive approach to third-party risk management. Visibility into your vendor’s attack surface is critical.

Seeking to stay ahead of hackers, many researchers have asked themselves what drives cyber risk. And many cyber insurance carriers have wondered how to accurately underwrite and price the risk. According to preliminary results from SecurityScorecard’s joint work with our cyber insurance partners, the answer is clear but multi-faceted.

Convenience. This is the key reason that businesses rely on SaaS applications. Companies worldwide were using an average number of 110 SaaS applications. All those applications have become one of the most severe security challenges. A report states that 40% of SaaS assets are vulnerable to data leaks due to poor management. SaaS-based apps are prone to massive threats, including ransomware, phishing, and malware. Even minor security incidents have damaging effects on your enterprise.

Because information security has become increasingly important and businesses are heavily relying on worldwide connectivity, Cyber VRM solutions are necessary to protect against emerging cyber threats and secure data effectively. However, managing vendors, in addition to their cyber risks, can be a challenging and time-consuming effort that requires more efficient solutions.

From nation-state threat actors to cybercriminals, today’s businesses face many cybersecurity threats. At the same time, organizations struggle to maintain a strong security posture because they have not yet shifted to a holistic approach to risk – one that combines a 360º view of the attack surface with the ability to communicate risk meaningfully and respond effectively.

Using best practices for cyber vendor risk management (Cyber VRM), organizations can identify, assess, and remediate their third-party vendor risks specifically related to cybersecurity. Organizations can utilize information attained from security ratings, data leak detection, and security questionnaires to evaluate their third-party security postures using dedicated Cyber VRM solutions.

The government of a U.S. county announced on September 11 that a recent cyber incident had disrupted its online services. Subsequent coverage of the event has noted that it strongly resembles a ransomware attack. The disruption comes against a backdrop of frequent ransomware activity targeting state and local governments and the education sector.

Spoiler alert: The answer is yes. But not in the way you might expect. Unless you live in an enchanted land where mermaids feed you healthy beer for breakfast, your security budget has probably shrunk recently. The good news is that this can be good news because determining with ruthless clarity the effectiveness (or ineffectiveness) of your cybersecurity program will help you take deliberate steps to improve it with an efficient spend.

When you choose to work with a third party, there's always the risk that they will cause your business harm. The right tools can help you make better-informed decisions about the vendors you choose and spot problems before they occur. Third-party vendors are an important part of any business, but it's important for employers to understand what the risks are when working with these partners.

As cybercriminals discover new ways to expand the threat landscape, cyber security professionals need to be able to predict their next move and stay ahead of evolving cyber threats. But in order to do so, businesses must be aware of their vulnerabilities, have a clear view of their cybersecurity posture, and have an understanding of their associated risks.