expert’ s corner
Is There Blood in Your Waters?
Hackers are drawn to companies with digital vulnerabilities
By Derrick Leue, PROLINK
Basic risk management is easily illustrated by not venturing into shark-infested waters with an open wound, as sharks are attracted to blood. A parallel can be drawn to the digital world where hackers are drawn to attacking companies or individuals who have vulnerabilities in the digital world.
Human error, malicious employees and poor IT protocols are the most common causes of privacy and data breaches. Cyber crime affects all organizations in Canada; however, often small- to mid-sized enterprises are more vulnerable than large national or international companies. This is because many smaller companies typically do not have appropriate resources to manage and monitor their websites and online business effectively.
VENDOR RISK
Large entities with a robust cyber security framework in place are not completely immune from cybercrime and should also be concerned about the inherent risks associated with being served by small- and mid-sized vendors. The hackers that stole the personal data of over 70 million Target Corp. customers used the credentials of an HVAC vendor to get into Target’ s network. For many years, it has been standard practice to require your vendors to provide proof of Commercial General Liability insurance. Moving forward, organizations should be demanding that their vendors maintain the appropriate type and level of cyber insurance. Ensuring that your suppliers have a cyber insurance policy in place will not prevent a privacy breach; however, insurance is often the stopgap required to prevent a smaller company from ceasing operations as a result of the financial losses incurred as a result of a catastrophic breach. In fact, a recent report from Symantec, a security software company, states that 60 per cent of small businesses will go under within six months of a cyber attack.
RISK MANAGEMENT
Employee education, IT security, prevention, internal auditing and disaster recovery are all critical components of your risk
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SUPPLY CHAIN CANADA • QUARTER 4 2016 • 31