Cybersecurity Risk Management - How to Manage Third-Party RisksEvery day, we are informed of data breaches that have exposed the private data of hundreds of thousands perhaps millions. These data breaches are typically caused by third-party partners such as a vendor who suffers an issue with their system.Information about your threat environment is vital in defining cyber-related threats. This lets you prioritize the threats that require immediate attention.State-sponsored AttacsWhen cyberattacks are committed by an entire nation they are likely to cause more damage than other attacks. Nation-state hackers are typically well-equipped and have sophisticated hacking techniques, which makes it difficult to recognize them or fight them. They are able to steal sensitive information and disrupt business processes. Additionally, they could cause more harm through targeting the supply chain and damaging third-party suppliers.The cost of a nation-state terrorism attack is estimated at $1.6 million. Nine out of 10 companies believe they've been victims of an attack by a state. With cyberespionage gaining popularity among nations-state threat actors, it's more important than ever to have solid cybersecurity practices in place.Cyberattacks from nation-states may come in many varieties. They could include ransomware, to Distributed Denial of Service attacks (DDoS). They can be executed by cybercriminal organizations, government agencies that are contracted or aligned by states, freelancers who are hired to carry out a nationalist operation or even hackers who target the general public.Stuxnet was an innovative cyberattacks tool. It allowed states to use malware against their enemies. Since the time, cyberattacks have been used by states to achieve the military, political and economic goals.In recent years, there has seen an increase in the sophistication and number of attacks backed by governments. For instance the Russian government-sponsored group Sandworm has been targeting businesses and consumers with DDoS attacks and ransomware. This is different from traditional crime syndicates which are motivated by financial gain and are more likely to target consumer businesses.As a result responding to threats from an actor of a nation-state requires a significant coordination with several government agencies. This is quite different from the "grandfather's cyberattack" when a company could submit an Internet Crime Complaint Center Report (IC3) to the FBI but not have to conduct a coordinated response with the FBI. Responding to a nation-state attack requires a higher degree of coordination. It also requires coordination with other governments, which is difficult and time-consuming.Smart DevicesAs more devices connect to the Internet, cyber attacks are becoming more common. This increase in attack surfaces can create security risks for businesses and consumers alike. Hackers can, for example use smart devices to exploit vulnerabilities in order to steal data or compromise networks. This is especially true if devices aren't properly secured and secured.Hackers are attracted to these devices due to the fact that they can be employed for a variety of purposes, such as gaining information about businesses or individuals. Voice-controlled assistants like Alexa and Google Home, for example can discover a huge deal about their users by the commands they receive. They also collect information about the layout of users' homes as well as other personal data. Additionally they are frequently used as a gateway to other types of IoT devices, such as smart lights, security cameras, and refrigerators.Hackers can cause severe damage to both businesses and individuals when they gain access to these devices. They could use them to commit a variety of crimes, including fraud or identity theft. Denial-of-Service (DoS) attacks, and malicious software attacks. In addition, they can hack into vehicles to steal GPS locations and disable safety features. They can even cause physical injuries to drivers and passengers.While it's not possible to stop users from connecting their devices to the internet, there are ways to limit the damage they cause. cybersecurity risk can, for instance alter the default factory passwords for their devices to stop attackers from getting them easily. They can also enable two-factor verification. Regular firmware updates are required for routers as well as IoT device. Also using local storage instead of cloud will reduce the chance of an attack when you transfer or the storage of data to and from these devices.Research is still needed to understand the effects of these digital ills on the lives of people and the best ways to reduce their impact. Particularly, research should focus on identifying and designing technology solutions to help mitigate the negative effects caused by IoT devices. They should also look into other potential harms related to with cyberstalking and the exacerbated power imbalances between household members.Human ErrorHuman error is among the most prevalent causes of cyberattacks. This could range from downloading malware to leaving a company's network vulnerable to attack. By establishing and enforcing strict security controls, many of these mistakes can be avoided. A malicious attachment can be opened by an employee within an email that is phishing or a storage configuration error could expose sensitive information.Furthermore, an employee could disable a security function in their system without realizing that they're doing so. This is a common mistake that exposes software to attacks by malware and ransomware. According to IBM the majority of security incidents involve human error. It is important to be aware of the types of mistakes that could lead to an attack on your computer and take the necessary steps to prevent the risk.Cyberattacks can be committed to a variety of reasons including hacking activism, financial fraud and to steal personal information or to deny service, or disrupt the critical infrastructure and essential services of a state or an organization. They are often perpetrated by state-sponsored actors, third-party vendors or hacker groups.The threat landscape is a complex and constantly changing. Organizations should therefore regularly examine their risk profiles and reassess strategies for protection to keep pace with the latest threats. The positive side is that modern technologies can lower the overall risk of a cyberattack and enhance the security of an organization.It is important to remember that no technology will protect an organization from every possible threat. It is therefore essential to develop a comprehensive cyber-security strategy that takes into consideration the various layers of risk in the organization's ecosystem. It's also crucial to conduct regular risk assessments instead of relying on traditional point-in-time assessments that are often inaccurate or miss the mark. A comprehensive analysis of a company's security risks will enable more efficient mitigation of these risks and help ensure that the company is in compliance with industry standards. This can help avoid expensive data breaches and other incidents that could adversely impact a business's operations, finances and reputation. A successful cybersecurity strategy includes the following elements:Third-Party VendorsEvery company relies on third-party vendors that is, companies outside of the company who offer software, services, or products. These vendors have access to sensitive data like client information, financials or network resources. If these businesses aren't secure, their vulnerability can become a gateway into the original business's system. It is for this reason that risk management teams for cybersecurity will go to great lengths to ensure third-party risks are screened and controlled.The risk is growing as cloud computing and remote working become more popular. In fact, a recent study by security analytics firm BlueVoyant found that 97% of businesses they surveyed had been negatively impacted by supply chain weaknesses. A disruption by a vendor even if it just impacts a small portion of the supply chain can cause a ripple effect that could affect the entire business.Many companies have taken to establishing a procedure which accepts new vendors from third parties and requires them to adhere to specific service level agreements that dictate the standards to which they are held in their relationship with the company. A thorough risk assessment should also provide documentation on the ways in which weaknesses of the vendor are analyzed and followed up with and corrected in a timely fashion.Another way to protect your business from threats from third parties is by implementing a privileged access management solution that requires two-factor authentication in order to gain access into the system. This stops attackers from easily gaining entry to your network through the theft of credentials.Finally, ensure that your third-party vendors are using the most recent versions of their software. This will ensure that they haven't created any security flaws unintentionally in their source code. Most of the time, these flaws are not discovered and could be used as a way to launch other high-profile attacks.Third-party risk is an ongoing risk to any company. While the strategies mentioned above can assist in reducing certain risks, the best way to ensure that your risk from third parties is reduced is to conduct continuous monitoring. This is the only method to fully understand the security posture of your third party and quickly identify possible risks.