According to a recently completed survey, most midsize business leaders consider a data breach to be among their top risks and a majority view IT security as being “very important” when selecting a supplier. The Hartford did a survey of midsize business owners and C-level executives. It’s concluded that there is good reason to be concerned: 43 percent of those surveyed had experienced a data breach in the prior three years, and 13 percent have had a supplier’s data breach impact their business information. The survey found most midsize business leaders (82 percent) consider a data breach at least a minor risk to their business. Nearly one-third (32 percent) view it as a major risk. Joe Coray, vice president of The Hartford’s Technology & Life Science Practice, stated:
All types of businesses have networks and networks can be vulnerable to a breach. As we have seen in recent years, a breach involving a supplier or vendor can impact a business as much as a breach of its own IT systems. Whether businesses are hosting their data internally or entrusting it to external business partners, it is important that they validate how their information is being secured.
Recognizing the data risks involving suppliers, more than half of the midsize business leaders (53 percent) surveyed consider IT security and data protection practices very important when selecting a supplier. By comparison, 36 percent consider a supplier’s contingency planning and 28 percent view a supplier’s location relative to their business as very important. Coray stated:
Given what is at stake in terms of a company’s operations and reputation, evaluating a prospective supplier or vendor‘s IT security and data protection protocols against current best practices should be a critical part of a company’s due diligence process.
Coray discusses data breaches and other technology risks for midsize businesses at www.thehartford.com/midsizemonitor. This is a major area of concern and one that must be addressed by both government and businesses.
Source: Claims Journal
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