Cybersecurity Risk Management - How to Manage Third-Party RisksEvery day, we are informed of breaches of data that have exposed the private information of hundreds of thousands perhaps millions. These data breaches are typically caused by third party partners such as a vendor that suffers a system malfunction.Information about your threat environment is vital in defining cyber-related risks. This information helps you identify threats that require your immediate attention.State-sponsored attacsCyberattacks from nation-states can cause more damage than other type of attack. Attackers from nations are usually well-equipped and possess sophisticated hacking techniques, making it difficult to recognize them or defend against them. As such, they are often able to steal more sensitive information and disrupt crucial business services. They may also cause damage by focusing on the supply chain of the company and inflicting harm on third suppliers.This means that the average nation-state attack costs an estimated $1.6 million. Nine out of 10 companies believe they have been a victim of an attack by a nation-state. With cyberespionage gaining popularity among threat actors from nations-states and cybercriminals, it's more critical than ever before for businesses to have a solid security program in place.Cyberattacks against states can take a variety of forms, ranging from theft of intellectual property to ransomware or a Distributed Denial of Service (DDoS) attack. They may be conducted by government agencies, employees of a cybercrime outfit that is a part of or contracted by an entity of the state, freelancers who are employed for a specific nationalist operation or even hackers who attack the public in general.Stuxnet was a game changer for cyberattacks. It allowed states to use malware against their enemies. Since then states have been using cyberattacks to achieve their political goals, economic and military.In recent years, there has been an increase in both the amount and sophistication of attacks backed by governments. For example, the Russian government-sponsored group Sandworm has been targeting businesses and consumers with DDoS attacks and ransomware. This is distinct from traditional crime syndicates, which are motivated by the desire to make money. They tend to target both consumers and businesses.As a result the response to a threat from a state-sponsored actor requires extensive coordination with multiple government agencies. This is a big difference from "your grandfather's cyberattack" when a company might submit an Internet Crime Complaint Center (IC3) Report to the FBI however, it would not routinely need to engage in significant coordination with the FBI as part of its incident response process. In addition to the higher degree of coordination responding to a nation state attack requires coordination with foreign governments which can be difficult and time-consuming.Smart DevicesCyberattacks are growing in frequency as more devices connect to the Internet. This increased attack surface could pose security risks to both businesses and consumers. Hackers could, for instance attack smart devices in order to steal data or compromise networks. This is especially true when these devices aren't properly protected and secured.Smart devices are especially attracted to hackers since they can be used to gather a wealth of information about individuals or businesses. For instance, voice controlled assistants like Alexa and Google Home can learn a number of information about users via the commands they receive. They can also collect data about the layout of their homes and other personal information. In addition they are often used as a gateway to other types of IoT devices, including smart lights, security cameras and refrigerators.If hackers gain access to these kinds of devices, they could cause serious harm to individuals and businesses. They could use these devices to carry out a wide range of crimes, including identity theft, fraud and Denial-of-Service attacks (DoS). They are also able to hack into vehicles to spoof GPS location or disable safety features and even cause physical injuries to passengers and drivers.There are ways to reduce the harm caused by these devices. For example users can change the default passwords that are used on their devices to prevent hackers from gaining access to them and enable two-factor authentication. It is also essential to upgrade the firmware on routers and IoT devices frequently. Furthermore using local storage instead of cloud can minimize the risk of a cyberattack when transferring or storing data to and from these devices.Research is still needed to better understand the impact of these digital threats on our lives, as well as the best ways to reduce the impact. Particularly, studies should concentrate on identifying and developing technology solutions that can help reduce the harms caused by IoT devices. They should also look into other possible harms, such as cyberstalking and exacerbated power imbalances between household members.Human ErrorHuman error is a typical factor that causes cyberattacks and data breaches. This could range from downloading malware to leaving a network vulnerable to attack. Many of these mistakes can be avoided by setting up and enforcing security measures. For example, a worker could click on an attachment that is malicious in a phishing scam or a storage misconfiguration could expose sensitive data.Moreover, an employee might disable a security function in their system without even realizing they're doing so. This is a common mistake that makes software vulnerable to attack by malware and ransomware. According to IBM the majority of security breaches result from human error. This is why it's important to understand the types of mistakes that can lead to a cybersecurity breach and take steps to mitigate them.Cyberattacks can be committed for many reasons, including hacking, financial fraud or to steal personal data and disrupt the critical infrastructure or essential services of any organization or government. They are usually perpetrated by state-sponsored actors, third-party vendors, or hacker collectives.The threat landscape is constantly changing and complex. Organisations must therefore constantly review their risk profiles and revise strategies for protection to keep pace with the latest threats. The positive side is that modern technologies can reduce the overall risk of a cyberattack and enhance the security of an organization.It is important to keep in mind that no technology will protect an organization from every threat. This is why it's crucial to devise a comprehensive cybersecurity strategy that takes into account the different layers of risk within an organisation's network ecosystem. It is also important to perform regular risk assessments instead of using only point-in-time assessments, which are often in error or missed. A thorough assessment of the security risks of an organization will permit an efficient mitigation of these risks, and also ensure the compliance of industry standards. This can ultimately prevent costly data breaches and other security incidents from negatively impacting the reputation of a company's operations, and financials. A successful cybersecurity plan should incorporate the following elements:Third-Party VendorsEvery organization relies on third-party vendors which are businesses outside of the company who offer products, services and/or software. These vendors have access to sensitive information such as client information, financials or network resources. Their vulnerability could be used to access the original business system when they're not secured. This is the reason why cybersecurity risk management teams have started to go to extreme lengths to ensure that the risks of third parties are vetted and controlled.This risk is increasing as cloud computing and remote working become more popular. A recent study conducted by security analytics firm BlueVoyant found that 97% of the companies which were surveyed suffered from supply chain weaknesses. A vendor's disruption even if it only affects a small portion of the supply chain, could have a ripple effect that threatens to cause disruption to the entire company.Many organizations have created an approach to accept new third-party suppliers and require that they sign service level agreements that define the standards they will be bound to in their relationships with the company. A good risk assessment should document how the vendor is evaluated for weaknesses, analyzing the results on the results and resolving them in a timely manner.A privileged access management system that requires two-factor authentication to gain entry to the system is a different method to safeguard your business against third-party risks. This will prevent attackers from getting access to your network by stealing an employee's credentials.The last thing to do is ensure that your third party providers are using the most recent version of their software. This will ensure that they have not introduced any security flaws unintentionally in their source code. These vulnerabilities can go unnoticed and used to launch further prominent attacks.Third-party risk is a constant risk to any company. The strategies discussed above can help mitigate these risks. However, cybersecurity company to reduce your third-party risks is by constant monitoring. This is the only way to know the condition of your third-party's cybersecurity posture and to quickly recognize any risks that might be present.