Why you should independently audit your IT service provider and validate your cybersecurity posture.

Unbiased assessments are vital to risk management.

Having reliable IT services play a vital role in keeping businesses afloat. As organizations increase dependence on technology for everyday functions, their security is at risk without proper internal and external validation. This is where third-party assessments come into play. Understanding how well your IT service provider safeguards your systems is essential. In this post, we will uncover why an independent audit matters for your organization's security and operational soundness.

It's important to note that most IT providers are great at what they do. In these cases, an independent assessment will validate their work, provide support for their recommendations, initiatives, and document your organization's practice of due diligence.

Understanding the Risks of Relying Solely on IT Providers

While IT providers are responsible for protecting your organization’s critical data, relying solely on their word can be risky. Many businesses assume their IT provider's promises about security measures are enough, but this can lead to serious vulnerabilities. There is nothing worse than relying on your IT provider and finding out your business is not resilient when you need it most.

Technology changes rapidly, so it's a good idea to make sure your IT provider has updated skills, tools, and the team to combat the latest threats. Validating your organization's cybersecurity posture is the practice of due diligence and vital to resilience.

Every year, cyberattacks rise dramatically. For instance, in 2022, there was a 38% increase in ransomware attacks compared to the previous year. Total annual ransomware cases were up 84% compared to 2022. If organizations do not take the time to independently assess their IT and cybersecurity posture, they risk becoming victims of these threats. Independent assessments can reveal blind spots and ensure compliance with strict security standards, offering a clearer picture of potential risks.

What is a Third-Party Assessment?

A third-party assessment is an evaluation conducted by an external organization to determine how effective your technology and security controls are. These assessments typically include audits, vulnerability scans, and penetration tests, giving a thorough overview of the design and operating effectiveness of your IT systems, security controls, and subsequently your IT provider’s service delivery.

For example, consider a financial institution that undergoes a third-party security assessment. If it discovers that vulnerabilities in it's data encryption methods expose sensitive client data, it can take immediate action to rectify this issue before a breach occurs.

The Benefits of Third-Party Assessments

Unbiased Analysis

The objectivity of third-party assessments is invaluable. Unlike internal audits, which may be influenced by relationships or company culture, external evaluations provide a clear view of an IT provider's practices. In a 2023 report, organizations that utilized external assessments found 45% more vulnerabilities than those relying solely on their internal reviews. This highlights the importance of bringing in fresh eyes and skills to uncover hidden problems.

Enhanced Security Posture

Independent evaluations often reveal areas that need improvement. For instance, last year, organizations that enhanced their security measures in response to an external assessment reported a 30% decrease in successful cyberattacks. Organizations can develop a robust security posture by addressing identified vulnerabilities and implementing better protective measures.

Tested Resilience

You may pay for backup or incident response services, but when is the last time your incident response plans and backups were tested? This is sometimes conducted in a table top exercise where you walk through contextualized risk scenarios to identify gaps and ensure you are prepared if the scenarios materialize.

Compliance and Regulatory Readiness

Security and privacy regulation differ based on industry and some are more strict than others. A third-party assessment ensures that your IT service provider complies with these rules. Regular assessments in some cases may be a regulatory requirement. For example, the Health Insurance Portability and Accountability Act (HIPAA) requires healthcare organizations to safeguard patient information. The Payment Card Industry Data Security Standard (PCIDSS) requires merchants to protect sensitive payment card information. Regular third-party assessments help avoid hefty fines and reassure clients about the organization's commitment to data protection.

Cyber Insurers often send out questionnaires auditing your information systems and security posture. If your security posture does not meet your insurance policy requirements, you may not be covered under the policy. Having an independent audit will provide your the information needed to answer these questionnaires confidently.

Improved Vendor Management

Thorough assessments provide insights into your IT provider's performance and security practices, enabling better vendor management. Companies that regularly assess their IT partners report that they make 25% more informed decisions when negotiating contracts or evaluating service offerings based on these insights.

How to Choose the Right Third-Party Assessment Partner

Selecting the right third-party assessment partner is key. Here are some factors to consider:

Expertise and Experience

Look for firms that specialize in your industry with relevant qualifications. IT and Cybersecurity are different fields. IT providers may add security services to capitalize on the growing market without actually having the specialized expertise. They may rely on generalized tools, not taking into account specific threat actors that may target your region or industry. A security focused provider with a proven track record is better equipped to identify specific vulnerabilities pertinent to your business. They should have updated skills, the ability to tailor the assessment for your business context, and the expertise to assist in closing security gaps.

Range of Services

Choose a service provider that offers security services, from vulnerability assessments to compliance reviews. This holistic approach ensures all areas of security are covered. If your IT provider does not offer security services, it's a good idea to get the help of a security service provider that will work with your IT provider. Security service providers should offer virtual Chief Information Security Officer (vCISO) services. This security professional will advise decision makers on risks, develop strategies, and assist with security, privacy, risk, and compliance related projects that align with your business goals and risk appetite.

Reputation and References

Investigate an organization’s reputation by checking client testimonials or industry reviews. Networking with peers can also provide valuable recommendations. LinkedIn is a great place to find information about companies and their professionals to learn about about experience, certifications, and observe how they interact within industries and peers.

Ongoing Support

Ask whether the organization provides ongoing monitoring or follow-up services after the assessment. Continuous engagement is crucial in the ever-changing cybersecurity landscape.

Implementing the Findings of the Assessment

Executive support is paramount to security. Without it, culture is very hard to change and security initiatives may stagnate. Once the third-party assessment is complete, organizations must take concrete steps based on its findings:

1. Regularly Updating Security Policies and Controls

   
   

   Use the assessment results to prioritize and patch vulnerabilities and revise security protocols and controls. Keeping these systems, policies, and controls updated helps defend against emerging threats and meet regulatory and compliance requirements.

   
   

2. Employee Training

   
   

   Conduct regular training sessions to ensure that employees and partners understand security policies and protocols. Awareness can significantly reduce security incidents caused by human error.

   
   

3. Periodic Reassessments

   
   

   Schedule recurring assessments to address new vulnerabilities. Organizations that reassess their security posture every six months experience fewer security breaches compared to those that conduct assessments annually.

   
   

Final Thoughts

In a technology-driven world, ensuring that your organization’s IT services are secure is not merely a preference; it is a necessity. Third-party assessments serve as a crucial tool in validating your IT provider's services, security measures, and capabilities. By engaging independent evaluators, businesses can strengthen their defenses, ensure compliance, safeguard their valuable data assets, and ensure they are in good hands. With a proactive approach to assessing IT services, your organization can stay ahead of potential threats and maintain a secure and resilient operational framework.