Addressing the risk of third-party cyber attacks Remember your company is only as safe as your most vulnerable connection or user. With significant financial, legal, and reputational risk, organizations should consider how they’re protecting themselves from a third-party cyber attack. It’s estimated that Amazon controls 48 percent of cloud computing technology followed by Microsoft at 16 percent. “ It’s estimated the cost to businesses and insurers of a single global ransomware attack could hit $193 billion, with 86 percent of that uninsured.”Īs companies shift business systems from in-house data centers to outsourced IT and cloud providers, we recommend they have a clear understanding of the security provided by the outside providers and those that are their responsibility.

Researchers project that multi-party events will increase at an average rate of 20 percent per year.

The largest incident studied impacted 131 firms beyond the original victim.The average affect from an incident will impact 10 companies beyond the original victim.

Key Findings from the Third-Party Risk Study: Results from the Ponemon Institute 2018 Third Party Risk Study indicate that 61 percent of companies surveyed have experienced a data breach caused by third parties.Ī recent study published by Cyentia Institute found that losses triggered by a multi-party technology incident are 13 times greater than single-party incidents.

If we use this theory to consider how we use technology today and how interconnected we are through these connections and with whom, the results are astounding. Do you remember the Kevin Bacon game “Six degrees of separation”? The game was based on the theory that every person and everything can be associated by six or less connections.

Six degrees of separation kevin bacon