Are You Managing Third-Party Risk?

Even if you’re confident in your cybersecurity strategy, it’s not complete if you’re not managing third-party risk.

Good cybersecurity and robust risk management require that you consider the impact of your partners in your supply chain – the risk posed by these third parties is significant. Security questionnaires and third-party risk analysis services are ineffective, and you run the risk of having a data breach involving these third parties.

The problem with using third-party risk analysis services is what many organizations consider to be security posture indicators don’t fully represent their actual security posture. These services draw from information available on the internet, which don’t have much to do with the services the third party in the supply chain offers.

Security questionnaires tend to be somewhat general, and your supplier is unlikely to have much insight into the risk of the software or cloud services they use. The surveys also tend to focus on security technology and their settings without addressing the risk itself.

When managing third-party risk, it is critical that you evaluate each supplier individually because each one will expose you to a different level of risk depending on the product or service they provide. The most important things to do is assess how likely it is the supplier will become unavailable, and if sensitive information will be compromised as a result.

A more detailed approach is to review specific business processes that might be vulnerable and contribute to risk, which requires people on both sides who understand risk management and how it intersects data security. This review should result in a remediation plan that would be implemented in the wake of any incident involving the supplier.

Privacy legislation such as the EU General Data Protection Regulation (GDPR) can provide some inspiration as to what all parties should have in place to ensure an adequate security posture for any service provided.

It’s important that you establish internal processes and assessment criteria so you can comprehensively assess vendors in your supply chain as part of your risk management process. Security metrics to consider include frequency of security incidents when you compare potential vendors, as well as their response time to patch vulnerabilities.

A managed IT service provider knows all about evaluating third-party risk, so consider tapping into their expertise to help shore up risk management so you can protect against security threats that might emerge from the supply chain.

There are many ways artificial intelligence (AI) and machine learning already impact cybersecurity. You can expect that trend to continue in 2024 – both as tools for data protection as well as a threat.

Balancing Cybersecurity Innovation Amid Evolving Threat Landscapes

Even as you implement AI and machine learning into your cybersecurity strategy through the adoption of tools like Security Orchestration, Automation, and Response (SOAR), Security Information and Event Management (SIEM) and Managed Detection and Response (MDR), so are threat actors. They will continue to update and evolve their own methodologies and tools to compromise their targets by applying AI and machine learning to how they use ransomware, malware and deepfakes.

With small and medium-sized businesses just much at risk as their large enterprise counterparts, SMBs must take advantage of AI and machine learning as mush possible. AI-directed attacks are expected to rise in 2024 in the form of deepfake technologies that make phishing and impersonation more effective, as well as evolving ransomware and malware.

Deepfake social engineering techniques

Deepfake technologies that leverage AI are especially worrisome, as they can create fake content that spurs employees and organizations to work against their best interests. Hackers can use deepfakes to create massive changes with serious financial consequences, including altering stock prices.

Deepfake social engineering techniques will only improve with the use of AI, increasing the likelihood of data breaches through unauthorized access to systems and more authentic looking phishing messages that are more personalized, and hence, more effective.

Countering Cyber Threats and Harnessing Innovation in 2024

If hackers are keen on leveraging AI and machine learning to defeat your cybersecurity, you must be ready to combat them in equal measure – just as AI and machine learning will create new challenges in 2024, they can also help you bolster your cybersecurity. While regulations are being developed to foster ethical use of AI, threat actors are not likely to follow them.

AI will also affect your cyber insurance as your providers will use it to assess your resilience against cyberattacks and adjust your premium payments accordingly. AI presents an opportunity for you to improve your cybersecurity to keep those insurance costs under control.

Conclusion

There’s a lot of doom being predicted around the growing use of AI and machine learning. And while it does pose a risk to your organization and its sensitive data, you can use it to bolster your cybersecurity even as threat actors leverage AI to up the ante. A managed service provider with a focus on security can help you use AI and machine learning to protect your organization as we head into 2024.

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