In today’s digital era, managing cybersecurity risks is more crucial than ever, with businesses increasingly relying on outsourced IT services. We sat down with Simon Glairy, an expert in risk management and AI-driven risk assessment, to explore the complexities of cybersecurity, the implications of global events, and the intricacies of choosing the right IT providers to safeguard your business.
What is the primary reason for the increase in cyberattacks over the past year?
There are a few driving factors behind the rise in cyberattacks. The increasing sophistication of cybercriminals and their ability to exploit technological vulnerabilities play a major role. Additionally, as businesses become more digital, they expand their attack surface, giving malicious actors more opportunities to infiltrate their systems. This trend is likely to continue as organizations grow more reliant on digital infrastructures without adequately fortifying their defenses.
How has the geopolitical situation, like the war in Ukraine, impacted cyber incidents in Europe and North America?
Geopolitical tensions, such as the conflict in Ukraine, have undoubtedly heightened the cyber threat landscape. These situations often lead to state-sponsored cyberattacks, which can escalate the severity and frequency of incidents. In Europe and North America, this has led to a significant increase in the number of cyberattacks, as various entities test and exploit vulnerabilities for strategic advantages. The implications are profound as they not only disrupt businesses but also threaten national security.
What percentage of businesses with 100 to 2,000 employees experienced a cyberattack in the past year?
Remarkably, 52% of businesses within that size range reported experiencing a cyberattack last year. This figure highlights the pressing need for robust cybersecurity measures and awareness across organizations, regardless of their size. It also underscores the challenge many businesses face in defending against increasingly sophisticated cyber threats.
Can you explain what constitutes a “strategically disruptive cyberattack,” and why has the number of such attacks doubled between 2020 and 2024?
Strategically disruptive cyberattacks are those intended to cause significant disruption to critical operations or infrastructure. They go beyond financial theft and aim for large-scale impact. The doubling of such attacks can be attributed to both technological advancements and the increased integration of online systems in vital services, making these attacks more appealing and impactful for those seeking to achieve broader strategic goals.
Why might businesses choose to outsource their IT services rather than keep them in-house?
Outsourcing IT services often provides access to specialized expertise and technologies that might be too costly to maintain internally. It allows businesses to focus on their core activities without the need to develop and manage an in-house IT infrastructure. Additionally, outsourcing can often offer scalable solutions and immediate access to the latest technological advancements, which are critical for maintaining competitive advantage.
What challenges do businesses face when selecting the right IT Service Provider (ITSP) or Managed Service Provider (MSP)?
Selecting an ITSP or MSP can be challenging due to the crowded and competitive marketplace. Businesses must evaluate if the provider truly understands their specific needs and risk profile. The key challenges include assessing their capability to manage crises effectively, their responsiveness, and ensuring they align with the strategic direction and goals of the business. Without thorough evaluation, businesses might end up with a provider that lacks the necessary capability or compatibility.
How can businesses ensure they’re getting value for money with their ITSP?
Assessing value for money involves a comprehensive evaluation of the services provided, including their quality, security measures, and response times. Businesses should compare these against costs to ensure they are proportionate. Regular performance reviews, clear communication of expectations, and periodic audits of the service provider’s performance are essential to maintaining transparency and value.
What risks do third-party ITSPs and MSPs pose to an organization’s security?
Third-party providers can introduce significant risks, primarily because they often require access to sensitive data and IT infrastructures. This access can be exploited by malicious actors if the third-party’s own security measures are inadequate. Moreover, insider threats from within these providers can lead to security breaches. This necessitates a rigorous vetting and monitoring process for any external service provider.
Why is it important for organizations to assess the capabilities of their IT suppliers before signing a contract?
A thorough assessment ensures that the IT supplier can meet the organization’s security and operational requirements. Once a contract is signed, you’re essentially locked in, and any inadequacies can result in significant financial and operational risks. Assessing capabilities beforehand helps prevent future issues and ensures that the supplier can adequately protect and support the business.
What methods can businesses use to evaluate potential or existing IT service providers?
Effective evaluation methods include using tailored supplier questionnaires to assess capability and compliance. Additionally, businesses should conduct site visits, review historical performance, demand transparency in security practices, and request evidence of past successes. These steps help ensure that the provider can genuinely deliver the promised services and security.
How does selecting a service provider on price rather than ability increase financial risk for a business?
Choosing based solely on price often leads to compromises in service quality and security, which can result in vulnerabilities that might be exploited, leading to financial damages far exceeding any initial savings. Therefore, focusing on the provider’s ability to deliver secure, robust, and effective solutions is crucial to avoiding such risks.
Why do businesses remain accountable for IT and security failures, even when services are contracted out to a third-party provider?
The responsibility for data breaches and IT failures ultimately lies with the business because they are the data controllers. They are accountable to their clients and stakeholders for any incidents that occur, regardless of whether they used third-party services. This accountability underscores the importance of choosing capable providers and maintaining oversight and control over the outsourced functions.
Can you share some examples of real-life cyber incidents involving IT service providers, and what lessons can be learned from them?
Certainly. Consider Company A, where the absence of multifactor authentication led to significant financial fraud. Another instance is Company B, which suffered a ransomware attack due to outdated software on servers. These cases highlight the necessity of not just implementing security measures but also ensuring providers keep them updated and relevant. Ultimately, these examples show the importance of detailed communication and regular review of security policies with providers.
What role do effective contractual agreements play in ensuring protection from IT service failures?
Contracts are pivotal in defining expectations and responsibilities, including response times to incidents and security standards. They serve as a formal agreement to guide the provider’s actions and protect the client’s interests. Regular contract reviews ensure expectations evolve with the client’s needs and technological changes, keeping both parties aligned and accountable.
What criteria should businesses use to conduct a critical supplier review?
Criteria should include an assessment of the supplier’s financial stability, compliance with industry standards, the effectiveness of their security measures, and the quality of their customer support. Additionally, businesses should review any incidents or changes in service that occurred during the contract period. A comprehensive review ensures that the supplier remains effective and aligned with the organization’s evolving objectives.
How often should organizations review their contracts and relationships with IT service providers?
An annual review is recommended, as it allows businesses to evaluate changes in requirements and service performance over the past year, ensuring they continue to meet organizational needs. Additionally, significant changes in technology or business goals might necessitate more frequent reviews.
What steps should businesses take if their IT provider is not meeting basic requirements or fails to communicate effectively?
Initially, businesses should address concerns directly with the provider, requesting specific improvements or solutions. If issues persist, a formal reassessment and renegotiation of the contract might be necessary. In some cases, it may be prudent to look for alternative providers who can better meet the organization’s needs.
How can transparent communication between a business and its IT provider help in mitigating potential risks?
Transparent communication ensures both parties are aware of expectations, emerging threats, and any service issues. It facilitates timely collaboration on risk mitigation strategies and enables proactive management of any potential threats. Ultimately, this transparency builds a strong, trustworthy relationship that enhances the overall security posture.
Do you have any advice for our readers?
In today’s interconnected world, ensuring cybersecurity is not simply about technology; it involves robust partnerships and informed decision-making. Regularly evaluate your service providers, maintain open lines of communication, and prioritize capabilities over cost when selecting partners. Always be proactive rather than reactive in your cybersecurity strategy.
