74% of firms who experience data breaches claim that third-party providers were responsible. However, when researchers delved deeper, they found the blame was shareable as only 49% of companies properly vetted the vendor's security protocols.
According to the team at supportyourapp.com, the Support-as-a-Service company, it's critical to vet any vendors with whom you plan to work. You have a duty of care to your clients to ensure that you store their data responsibly.
Should you share it with a third party, they must adopt appropriate levels of care. If they do not, your company remains liable as the client shared their information with you.
Does this mean you should avoid outsourcing functions that involve sharing sensitive customer data? Not at all. What it does mean, however, is that you must instead be careful when you do so.
The following tips will make it easier to protect your data before you share it with a third-party provider.
The first step is to understand the journey your client data takes from the first entry until you dispose of it. Next, we recommend mapping the data flows and identifying any bottlenecks or potentially troublesome areas.
Look for:
Once you are sure that your company's data management policies are airtight, you can start to assess the potential risk in outsourcing.
Before you start to look for a new outsourcing partner, you need to understand the risks you may face in terms of:
You need to be sure that your potential partner can adequately protect your data.
High-level encryption is a good start, but how does the company vet potential employees? Do they perform a security clearance or background check? How do they manage access to their systems and offices?
High-level security means little if a contractor fixing an electrical error can walk over to an empty computer and download information.
Also, do employees work remotely and, if so, do they use their own devices? Who else can access these devices at home and are their wireless networks secure? Physical data security is as important as cybersecurity.
The level of protection overall is only as solid as the team behind it. How adept is the business's IT security team? Has the company developed any proprietary software, and, if so, what kinds of bugs are there in it? Poorly developed software may indicate a lack of the knowledge you need to protect your data.
Companies are adept at marketing themselves and so will not highlight security weaknesses. If you deal with highly sensitive data, you need to perform a complete security check.
This may include:
There is a risk when entrusting your data to a third-party provider. However, you may minimize that risk by thoroughly vetting the party concerned.
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