Cybersecurity & Compliance: The Focus of 2016 – Part 1

Cybersecurity & Compliance: The Focus of 2016 – Part 1

Cybersecurity & Compliance: The Focus of 2016 – Part 1

Leverage your IT to Get Ahead of Your Competitors

2016 will be the year of cybersecurity and compliance. SMBs need to take notice. Let’s take a look at the numbers….

44% of SMBs have been victims of cyber attacks. Average cost per attack $8700.

60% of SMBs that are victim of a cyber attack go out of business within 6 months of the attack.

In early 2016 regulators for the New York State Department of Financial Services will be issuing guidelines for cybersecurity requirements for banks. An interesting portion of these requirements will be focusing on policies regarding third-party vendors. Ian Russell, chief of Investment Industry Association of Canada mentioned this past November about implementing cyber security plans for their member firms. It should be no surprise that these guidelines may cross over to other jurisdictions/countries as well as other industries.

This can be an opportunity for a small/mid-sized business to use their IT infrastructure as a competitive advantage. For example, an advertising/marketing firm who is bidding on a project with a pharmaceutical firm may have an edge if they can prove that their IT infrastructure is secure and have sound security policies.  Even if they were best at what they do, which executive will choose them if there is a hint of concern that their intellectual property or marketing strategy is at risk for getting hacked or leaked?

As cyber security incidents continue to rise, organizations in general will take necessary future steps towards their vendor management processes. Even though the following incidents occurred over 2 years ago, the Target CEO resignation was a wake-up call to all c-level executives. Traditionally the IT department executives “fell on the sword” when an incident occurred. The Home Depot hack can be traced back to an outside vendor. So it is no surprise that third-party vendors will face more scrutiny.

For 2016, small and mid-sized business should expect more site audits from their clients and prospects, detailed reports on cybersecurity plans and internal policies. Organizations that are quick to realize this and prepare for it will definitely have a competitive advantage.

Part two will investigate strategies to implement. If you require more information or would like a IT infrastructure audit, please contact us.

Image courtesy of David Castillo Dominici at FreeDigitalPhotos.net
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