Cyber Security: Are Third-Party Vendors Increasing Your Risk?

Are Third-Party Vendors Increasing Your Risk

Cyber Security: Are Third-Party Vendors Increasing Your Risk?

Small businesses that handle financial data are particularly susceptible to cyber security breaches. As part of the insurance community, you most certainly have extensive measures in place to make sure customer data is secure within your organization. But have you taken the further step to verify that all your third-party vendors have plans in place to secure their systems?

Common sense says that the more connected we are, sharing data through cloud computing, the more vulnerable the complete ecosystem of business has become. Yet, a survey of executives and small business owners by Ponemon Institute, a research center dedicated to privacy, data protection and information security policy, found that while 49% had experienced a data breach caused by a third-party vendor, 49% also had no plan in place to assess risk management of their vendors.

And in a separate survey by Ponemon Institute, 60% of the respondents said their businesses tend to focus on response to threats because they believe prevention is too hard to accomplish. At NetRate, we believe that’s simply not enough. In a world with ever-growing cyber security threats, we have both proactive and reactive plans in place to ensure the protection against the vulnerabilities of electronic data.

Following the guidelines laid out in the New York State Department of Financial Services (NYDFS) cyber security requirements, NetRate has a robust cyber security program that the Company follows internally to protect the confidentiality, availability and integrity of its data and its customers’ data.

We encourage insurance businesses to review cyber security risks regularly. Use this checklist to focus on your business partners. Do your vendors:

  • Protect access to production data both by physically securing the environment and logically securing access to servers, software and networks.
  • Have an incident response plan in place to report, respond to and recover from a cybersecurity incident.
  • Have a business continuity plan to ensure operations continue despite disaster (such as hurricane, security breach)

NetRate values the relationships we build with our customers and believes a strong security program fosters trust. If you have any questions about our Cyber Security or Business Continuity policies and programs, please give us a call at (877) 790-1114 or contact us here and ask to speak with our Security Project Manager.

LINKS:

49% experienced breach by third party vendor:
60% say focus is on response:

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