Cybersecurity Risk Management - How to Manage Third-Party RisksEvery day is without news of data breaches that expose hundreds of thousands or even millions of private details of individuals. These incidents are usually caused by third party partners such as a vendor who suffers a system malfunction.Information about your threat environment is essential in defining cyber-related risks. This information allows you to prioritize threats that require immediate focus.State-sponsored attacsCyberattacks from nation-states can cause more damage than any other attack. Nation-state attackers typically have large resources and sophisticated hacking abilities that make them difficult to detect or fight. They can take sensitive information and disrupt business processes. In addition, they can cause more damage over time by targeting the company's supply chain and compromising third-party suppliers.The average cost of a national-state attack is estimated at $1.6 million. Nine out of 10 companies think they've been the victim of a nation-state attack. With cyberespionage gaining popularity among nations-state threat actors it's more crucial than ever to have solid cybersecurity practices in place.Cyberattacks by nation-states can come in a variety of forms. They range from ransomware to Distributed Denial of Service attacks (DDoS). They can be carried out by government agencies, members of a cybercriminal outfit which is affiliated with or contracted by the state, freelancers employed for a specific nationalist operation or even criminal hackers who target the general public at large.The introduction of Stuxnet changed the game for cyberattacks as it allowed states to arm themselves with malware and make use of it against their enemies. Since then, cyberattacks have been used by states to achieve the military, political and economic goals.In recent years, there has been a rise in the sophistication and number of attacks backed by government. For example the Russian government-sponsored group Sandworm has been targeting both consumers and enterprises with DDoS attacks and ransomware. This is in contrast to the traditional crime syndicates which are motivated by financial gain and are more likely to target businesses that are owned by consumers.Responding to a national state actor's threat requires a lot of coordination between 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 be required to engage in significant coordinated response with the FBI. In addition to the increased degree of coordination, responding to a nation-state attack requires coordination with foreign governments, which can be particularly challenging and time-consuming.Smart DevicesCyber attacks are increasing in frequency as more devices connect to the Internet. This increase in attack surfaces can cause security issues for businesses and consumers alike. For instance, hackers can use smart devices to steal information or even compromise networks. This is particularly true when these devices aren't properly secured and secured.Smart devices are especially appealing to hackers as they can be used to gather a wealth of information about people or businesses. Voice-controlled assistants like Alexa and Google Home, for example, can learn a great deal about their users by the commands they receive. They also gather information about users' home layouts and other personal information. These devices also function as gateways to other IoT devices, such as smart lighting, security cameras, and refrigerators.Hackers can cause severe harm to businesses and people if they gain access to these devices. They can use these devices to commit wide range of crimes, such as fraud, identity theft and Denial-of-Service attacks (DoS). They also have the ability to hack into vehicles in order to disguise GPS location, disable safety features, and even cause physical injury to passengers and drivers.While it is not possible to stop users from connecting their devices to the internet, there are ways to limit the damage they cause. Users can, for example, change the factory default passwords on their devices to prevent attackers getting them easily. They can also activate two-factor authentication. Regular firmware updates are also required for routers as well as IoT devices. Local storage, instead of cloud storage, can lessen the chance of an attacker when it comes to transferring and storage of data from or to these devices.It is still necessary to conduct studies to better understand the digital damage and the best ways to minimize them. Studies should concentrate on identifying technology solutions that can help mitigate harms caused by IoT. They should also investigate other potential harms such as cyberstalking, or exacerbated power imbalances between household members.Human ErrorHuman error is a frequent factor that causes cyberattacks and data breaches. This could range from downloading malware to leaving an organisation's network open for attack. By creating and enforcing strict security procedures Many of these errors can be avoided. A malicious attachment could be clicked by an employee in a phishing email or a storage configuration issue could expose sensitive information.A system administrator may disable the security function without even realizing it. This is a common error which makes software vulnerable to attacks from ransomware and malware. IBM claims that human error is the main cause of security breaches. It is important to be aware of the types of mistakes that can cause an attack on your computer and take steps to prevent the risk.Cyberattacks can be committed for a wide range of reasons, including financial fraud, hacking activism and to steal personal information, deny service, or disrupt the critical infrastructure and essential services of a government agency or an organization. State-sponsored actors, vendors or hacker groups are often the perpetrators.The threat landscape is constantly evolving and complicated. Companies must constantly examine their risk profiles and revisit protection strategies to stay up-to-date with the latest threats. The good news is that advanced technologies can reduce the risk of a cyberattack, and enhance the security of an organization.It's also important to keep in mind that no technology is able to protect an organization from every threat. This is the reason it's essential to create an extensive cybersecurity strategy that takes into account the various layers of risk in an organization's network ecosystem. It's also crucial to regularly perform risk assessments rather than relying on point-in-time assessments that could be easily erroneous or inaccurate. A thorough assessment of an organisation's security risks will enable more efficient mitigation of those risks and ensure that the company is in compliance with industry standards. This will help prevent costly data breaches as well as other incidents that could have a negative impact on a business's operations, finances and reputation. A successful cybersecurity strategy should incorporate the following elements:Third-Party VendorsEvery business depends on third-party vendors - that is, businesses outside of the company who offer products, services and/or software. These vendors have access to sensitive information like financials, client information or network resources. These companies' vulnerability can be used to gain access to the original business system when they are not secured. It is for this reason that risk management teams for cybersecurity are going to extremes to ensure that risks from third parties can be vetted and managed.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 companies they surveyed were adversely affected by supply chain weaknesses. A vendor's disruption, even if it only impacts a small portion of the supply chain, can have a domino-effect that can disrupt the entire business.Many organizations have created an approach to accept new third-party suppliers and demand them to sign service level agreements which dictate the standards they are held to in their relationship with the organisation. A sound risk assessment should also document how weaknesses of the vendor are analyzed and followed up with and corrected promptly.Another method to safeguard your business from risk 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 gaining access to your network by stealing credentials of employees.Also, ensure that your third-party vendors are using the latest versions of their software. This will ensure that they haven't introduced any unintentional flaws into their source code. Often, these vulnerabilities are not discovered and could be used as a way to launch more high-profile attacks.Ultimately, third-party risk is an ever-present threat to any business. While the strategies mentioned above can aid in reducing some of these risks, the best method to ensure that your third-party risk is minimized is to continuously monitor. This is the only way to know the condition of your third-party's cybersecurity and quickly spot any potential risks that could arise.