Technology evolves at an instantaneous pace. It wasn’t that long ago when telephones were a common sight, the internet was in its infancy, and the seamless global connection was all but fantasy. Yet here we are summoning cars from the mini-computers in our pockets, jumping on a real-time video call with multiple people across the globe, and having our household appliances operate on it’s own. Such is the case with Security Trends as well.
But as technology evolves, so do the cybercrimes. The major instances of cybercrime in the previous decade have increased the massive security concerns of businesses. As per data reported by Interpol, cybercrime in 2017 rose to the top of the black market list. It outpaced illicit drug sales, and in 2018 revenues from cybercrime were estimated at nearly $1.5 trillion. Cybercrimes and data breaches continue to outpace all other black-market industries. Cybersecurity Ventures now predict that cybercrime will cost global businesses $6 trillion each year.
As a founder/CEO, it falls upon you to keep your business running and secure its assets, its employees, and customers. You also have to ensure that your business/start-up complies with the appropriate security frameworks and policies. So that you can keep the companies you sell out of such possibilities. Part of that is pace up with the emerging trends and practices of cybersecurity, and how new standards — and concerns — shape how the business is done.
Below are Five Security trends that didn’t used to exist five years ago, but could cause a huge impact on your business operations.
Governments across the globe are becoming increasingly vigilant about the data security and privacy of their sovereign territories. Some of the measures include updating incumbent and obsolete standards and rolling out new ones, like the recent implementation of GDPR in the European Union. It’s highly likely that any organization you work with will be required to actively comply with certain security frameworks — which means you’ll have to as well. And when it comes to data, businesses typically expect that any vendor or sublet that interacts with sensitive data will conform to the same protocols that the enterprise does.
Does the enterprise you’re doing business with need to comply with HIPAA? The CCPA? Even if the company doesn’t store or access any personal data, they still might have compliance protocol, and companies that work with large amounts of data certainly do. Keep your start-up in sync with these standard protocols so that you as a vendor can put the enterprise company at ease.
Also Read: Software Regulatory Compliances for Businesses simplified.
For instance, Are all of your compliances up-to-date, and have you invested in calibrating your data management systems to comply with industry and regional regulations? Enterprise companies are increasing their watch into how secure vendors keep their data — and you could land yourself in legal trouble if you’re “Just unaware”. If there is a privacy infiltration and you can’t prove you met the required standards you say you did, you could face breach of contract lawsuits, accusations of fraud, or severe litigations.
Enterprise companies are being held to greater compliance standards by state, federal, or provincial governance around data safety, which means they’re going to be incredibly careful about who they partner with. They understand the likely ramifications of a breach and know that if a breach occurs in their supply chain, it will be associated with them.
They require their vendors to also hold themselves to the same compliance practices. And will immediately reject the company that doesn’t. Risk is now being pushed further down the supply chain. This means more questionnaires regarding what kind of audits or penetration tests you’ve done, and what kind of documentation you have around compliance with SOC 2, ISO, NIST, or CIS. If you’re not adequately covered, a lack of implementation on your part could cause massive losses for your B2B partners if you expose them to a data breach.
It seems as if every few months there’s another massive data theft from supposedly secure companies — Twitter, Facebook, Uber, Equifax — which doesn’t go unnoticed by board members and investors, who could be on the hook for such failures.
Capital One’s board landed themselves in trouble when they were specifically faulted by The Office of the Comptroller of Currency. Saying the company’s board of directors “failed to take effective actions to hold management accountable”. An oversight that leaked the PII of over 100 million customers and cost the corporation $80 million in penalties.
Once these breaches were identified, Companies like Capital One have the responsibility to answer to their consumers and shareholders. And because of this, boards and investors are being more vigilant about data security. They are increasing scrutiny into their companies and ensuring sufficient company resources are focused on security and compliance.
It’s not just large companies that need to be concerned about their data security. Small and medium-sized businesses should keep focused on compliance as well, as hackers see them as easier targets. Legacy systems, spreadsheet tracking, or keeping data exclusively in the cloud is no longer a secure option. And the companies behind the legacy software have failed to produce new solutions for a quickly evolving world. The good news is that young companies are entering the space with fresh innovations, to not only challenge older categories like GRC but to provide companies flexibility and scalability as they introduce new apps and approaches into the security space.
For a founder, data security today means implementing a plan for compliance, training for employees, adherence to standards, and keeping up with evolving trends. Doing so means you’ll not only be able to answer security questionnaires but will be able to protect yourself – and your customers – from becoming another headline.