Most midsize business leaders view a data breach among their top risks and a majority consider IT security ‘very important’ when selecting a supplier, according to The Hartford’s survey of midsize business owners and C-level executives. They have good reason to be concerned: 43 percent 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 Hartford 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.
“All types of businesses have networks and networks can be vulnerable to a breach,” said Joe Coray, vice president of The Hartford’s Technology & Life Science Practice. “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.
“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,” said Coray, who discusses data breaches and other technology risks for midsize businesses at www.thehartford.com/midsizemonitor.
Source: The Hartford
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