According to a survey conducted by Kaspersky Lab and B2B International, businesses are losing confidence in suppliers. The main reason is the increasing number of IT security incidents that they cause. The survey found the average cost of such an incident for Enterprise exceeded $3 million.
The recent survey showed that over a third of companies do not trust their suppliers, with the figure for 2015 standing at 37% – up four percentage points on the previous year (33%). This trend is the same for small and medium businesses as well as large corporations. The principal reason for this loss of faith in suppliers is the fact that they were to blame for 18% of cyber incidents in 2015.
Incidents involving third-party suppliers are no less dangerous for businesses than direct cyber-attacks on a company’s infrastructure. In both cases, the cost of eliminating the consequences is equally high: cyber incidents involving suppliers cost small and medium businesses $67,000 on average, while the figure for large corporations is $3.27 million.
“In order to avoid damages and to ensure secure communication with suppliers, a comprehensive multi-layered approach is required. The first thing to do is to delineate access rights to different areas of the corporate network for different employees. This will help restrict a supplier’s access to the company’s resources. Be sure to find out the details of the supplier’s IT security system and implement rules of interaction that are based not only on efficiency and flexibility but also on security,” said Konstantin Voronkov, Head of Endpoint Product Management at Kaspersky Lab.
There are too many variables that contribute to the total impact of a corporate security breach. The consequences are also different. Some businesses it’s the slight increase of the total IT budget, for others it’s a significant financial and reputational damage, and for some it’s going out of business with all assets wiped out. One thing is certain – the cost of a security breach is always higher than the cost of protection: the ability to reduce the risk and avoid the shaky path of recovery always pays off.
Besides, cyber based insecurity. Companies have reported many cases of fraudulent inside trading done by officials in a particular company. Most Indians in the country trust their own. Ideally, entrepreneurs tend to employ or partner with procurement firms that they can trust leaving other new institutions suffer. The procurement field is lucrative but limited to the few established firms. However, the risks can be minimized using different models. A good example is approaching security experts. Majorly, businesses are losing confidence in suppliers and it’s affecting many people.