The increased economic uncertainty in the U.S. is prompting businesses to make cuts, including reducing their cyber budgets. Unfortunately, as budgets and teams shrink, cybersecurity threats are increasing rapidly, putting Chief Information Security Officers (CISOs) and other cyber leaders in a difficult position.
According to new data, almost 70% of executives agree that constraints on their budgets will limit their ability to respond to today’s threat landscape. This highlights the urgent need for CISOs to find innovative ways to manage cyber risks with fewer resources.
As a result, CISOs are turning to solutions that enable them to do more with less. Forward-thinking cyber leaders are investing in third-party cyber risk intelligence solutions to identify vulnerabilities and blind spots, mitigate third-party risk factors and ultimately enable their organization to maintain high levels of compliance despite today’s constraints – here’s how.
Technology: Cyber’s Biggest Vulnerability and Greatest Solution
Today’s threat landscape is a double-edged sword. Digital systems are creating new entry points for bad actors. At the same time, these advancements provide organizations with the tools they need to prevent attacks and fight back.
From a risk perspective, technology has provided cyber criminals with the means to conduct some of the most sophisticated attacks to date. As a result, the damage from these incidents is growing in size and scope. In 2022, Black Kite Research found that the level of impact and destruction from breaches nearly doubled from 2021 with 4.73 affected companies per vendor. From massive data leaks and multi-million dollar ransom payouts to cryptomining attacks, businesses that have yet to be targeted are asking themselves, if not now, when?
With an average of 1,140 cyberattacks impacting businesses on a weekly basis in 2022, it’s clear that no business is immune. Cyber teams must strengthen their cyber operations – even when facing budget limitations. Whether you are a SME or a Fortune 500 company, embracing technology is crucial to beat bad actors at their own game – but not just any technology will suffice. In fact, some technology investments may be eating away at your budget without adding value to your overall cybersecurity strategy. If you have yet to assess your current systems, now is the time because the clock is ticking.
Budget Cuts Create Blind Spots – Creating Vulnerability
When budgets are cut, regardless of if directly linked to cyber operations, blind spots are created that open the door to bad actors.
For example, if a company decides to reduce headcount in the human resources department, there are fewer people keeping an eye on sensitive employee information. Alternatively, if the finance department is working off legacy technology because leadership decided to eliminate tech investments, there are potentially significant security risks as the outdated technology does not have the necessary features or updates to protect against new and emerging threats. Ultimately, budget cuts create vulnerabilities that allow cyber criminals to thrive with reduced capabilities for threat detection, slower incident response times, and decreased investment in training and awareness programs.
Moreover, third-party breaches pose an even more daunting threat to nearly all externally-facing departments. Without real-time information into the cyber posture of third parties, organizations can be blindsided by a breach of their third-party vendors, especially if there are fewer people to monitor this complex, interconnected ecosystem due to budget cuts and layoffs.
Cyber Can be Time-Consuming and Expensive, But It Doesn’t Have to Be
To avoid these situations, CISOs are investing in third-party cyber risk intelligence solutions that provide comprehensive information about potential threats that exist in their digital supply chains.
Armed with real-time information into a vendor's cyber posture from a financial, compliance and risk perspective, companies are not only able to identify when a third-party partner is vulnerable, but they are able to see when they are under attack – allowing them to take steps to remediate any issues before they escalate. This ability is critical when budgets are low, and businesses can’t afford a cyber misstep.
To fully understand the extent of a third-party attack, businesses need to ask themselves, if this partner were to be hit with a cyber breach, how bad would it be for us? The answer usually varies from bad to very bad. So to stop this circumstance from unfolding, and to compensate for smaller budgets, CISOs are investing in automation.
Companies with shrinking teams can’t spend all their time sending, receiving, and processing questionnaires for hundreds or even hundreds of thousands of supply chain partners. And no team has the time to go back and forth about confusing and/or unclear questions and answers on said surveys. With third-party cyber risk intelligence solutions, businesses don’t need to waste precious time or money, because keeping a watchful eye on the entire ecosystem is automated for them. This also alleviates worries regarding smaller teams that don’t have the necessary means to assess their entire vendor supply chain.
In a Recessionary Environment, CISOs Should Focus on What They Can Control
In today’s fast-paced digital environment, the threat of cyberattacks is constantly increasing. With limited resources and growing pressure to keep up with the latest threats, it can be daunting for companies to manage security risks in and outside their organizations.
With technology like third-party cyber risk solutions, CISOs can breathe easy knowing that their comprehensive digital supply chains are being constantly monitored and that their internal systems are secure. By leveraging these types of solutions, cyber leaders can focus on what they can control and rest assured that they have the tools necessary to navigate the complex cyber landscape, even with fewer resources.
In a world where cyberattacks are commonplace, investing in the right tools to eliminate blind spots, mitigate risk and protect your bottom line is not just a smart move, it’s a necessary one.
