Gain confidence that your suppliers, partners and clients aren’t putting you at risk through Third-Party Risk Management
Birmingham Consulting can help your business with third-party risk management and cyber insurance. We can assess your risk with third-parties you currently work with and make sure your vendor qualification criteria and other third-party contracts address security. As well as ensure you are also meeting your customer and client security requirements.
When it comes to assessing risk and determining how much cyber liability insurance a business needs, one of the frequently overlooked risks is third party. And the most commonly overlooked 3rd-party risk is frequently supplier security – whether that be a supplier of materials, services, or software.
Third-Party Risk Management: Book a consultation to learn more about how we can assess your risks associated with third-parties
When it comes to information security, you can trust Birmingham Consulting to keep you armed with the best protective measures for your business. Book an information security consultation with us to find out how our services can augment your plans, tools, procedures and policies. Click below or call (289) 895-8948 to schedule.
FAQ’s about third-party risk management and cyber insurance:
In 2023, a nationwide cement company was forced to run on paper for a week due to a cyber attack. While it may sound like a minor inconvenience, if you were a construction company whose project was delayed because of it, you were a victim of a supply chain interruption because of a security incident.
And if your business systems are hosted in the cloud but either the host or the software provided is compromised, you will be affected.
Case in point, in 2021 the company hosting a cloud-based property management application for multiple property management companies suffered from ransomware. Not only were the property management companies unable to work for more than a week, they lost their data, and were sued by their clients because it was considered a data breach.
Cyber liability and third-party risk management
Cyber liability refers to the legal and financial responsibilities businesses face in the event of a cyber attack, data breach, or other security incidents. It encompasses the financial risks associated with protecting sensitive data, maintaining the security of digital systems, and ensuring compliance with regulations.
Cyber liability insurance and third-party risk management
Cyber liability insurance helps organizations cover the costs related to information security incidents, such as legal fees, data recovery, business interruption, and any resulting damages. Essentially, it provides financial protection and support in the aftermath of cyber-related incident or breach.
Related: How Cyber Insurance Works
What’s the difference between cyber insurance and cyber warranties?
Quantify your cyber risk and get your total cyber liability – zero cost.
We want to help businesses quantify their cyber risk so that they feel confident in their cyber insurance coverage. So, we created a comprehensive and anonymous Cyber Liability Calculator for businesses to be able to estimate the financial impact from a cyber incident – a key first step in obtaining the right insurance policy for your risk profile.
Estimated results include:
Information risk assessments play a vital role in an organization’s overall risk management strategy.
There are multiple reasons to conduct an information security assessment:
Reduction of Long-Term Costs: By identifying and addressing potential threats and vulnerabilities, you can prevent or lessen security incidents, thereby saving your organization money and protecting its reputation over time.
Provides a Template for Future Assessments: Effective initial assessments establish a solid foundation for future evaluations, creating repeatable processes that remain consistent even with staff changes.
Enhanced Organizational Insight: Understanding your organization’s vulnerabilities helps pinpoint areas that require improvement.
Prevention of Data Breaches: Avoiding data breaches is crucial, as they can result in significant financial loss and damage to your organization’s reputation.
Avoidance of Regulatory Issues: In any industry, your business may be required to follow certain rules and regulations regarding information security. For example, businesses that handle sensitive customer data, or, alternatively, works with another business or organization that does. Therefore, complying with those regulations is essential to success.
Minimization of Application Downtime: Ensuring that internal and customer-facing systems are consistently operational is vital for smooth business operations.
Prevention of Data Loss: Protecting against the theft of trade secrets, code, or other critical information is necessary to prevent competitive disadvantage.
How can you determine where to invest in information security?
So, risk severity can be determined using the following calculation:
The likelihood of something happening
X (Multiplied by)
The impact on the organization.
Therefore, something that is high-risk means that it has a high likelihood of happening and would have a big impact. So you should invest in avoiding, transferring, or mitigating it. Whereas a low-risk might be something you simply accept.
Brace for financial impact with our Cyber Liability Calculator
Estimate the financial impact to your business from a cyber incident with our free and anonymous Cyber Liability Calculator.
Results include email fraud, ransom demand, downtime cost, remediation cost per industry statistics, 1st-Party liability, number of Personally Identifiable Records, Third-Party liability, legal costs associated with Third-Party liability and more!
