Cyber Insecurity: Are Finance Executives Overlooking Third Party Risks?
In a fierce and fast-moving economy, companies are only as competitive as their partnerships enable them to be. But as common as it has become for businesses to replace, or complement, in-house capabilities with third-party agreements, they may be overlooking the cyber-risks they are acquiring in the process.
Such alliances allow companies to stay focused on their essential competencies, assigning other activities to organizations with the ability to perform them more efficiently. The web of agreements, which may include strategic suppliers, as well as providers of network security and data management, offers the tangible benefit of enabling companies to reduce costs. But the arrangements also expose companies to additional risks, offering a “side-door” through which cyber-hackers try to slip undetected, sneaking their way to a treasure trove of valuable data.