{"id":45642,"date":"2017-07-24T14:29:26","date_gmt":"2017-07-24T21:29:26","guid":{"rendered":"https:\/\/www.questionpro.com\/blog\/?p=45642\/"},"modified":"2023-01-31T06:36:21","modified_gmt":"2023-01-31T06:36:21","slug":"misconceptions-data-security-risk","status":"publish","type":"post","link":"https:\/\/www.questionpro.com\/blog\/misconceptions-data-security-risk\/","title":{"rendered":"6 Common Misconceptions Regarding Vendors\u2019 Data Security Risk"},"content":{"rendered":"<h3 style=\"text-align: center;\">Do Any of These Beliefs about Data Security Risk Sound Familiar?<\/h3>\n<p><b>#1 If a vendor has been certified as PCI or HIPAA compliant, procurement can skip the security review.<\/b><\/p>\n<p><b>Not a good idea.<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Regulatory compliance is just one data point. A vendor can be PCI compliant on a very specific portion of its technology yet have weak controls in other areas \u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Most products and applications that are PCI or HIPAA compliant fall into noncompliance quickly because they are often implemented with weak controls or over time, due to environmental changes, the original compliant configurations weaken enough to make them non-compliant.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Vendors may be PCI or HIPAA compliant but their subcontractors and suppliers may ultimately put them out of compliance, putting your organization at risk<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Companies must be reviewed for data security risk annually to remain compliant<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Be wary of vendors who make a product seem too good to be true. There is no magic bullet that will make your network completely PCI or HIPAA compliant. Most <\/span><span style=\"font-weight: 400;\">vendors overstate their claims and promise much more than they can deliver.<\/span><span style=\"font-weight: 400;\"> In the event of a security breach, consumers won\u2019t care whether the fault lies with your business or with your vendor partner.<\/span><\/li>\n<\/ul>\n<p><b><i>#2 <\/i><\/b><b><i>Because we are a privately held company, we don\u2019t need to demonstrate the same level of data security risk due diligence as a public company; we are also not required to disclose any data breaches.<\/i><\/b><\/p>\n<p><b>Not true.<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Wow. \u00a0Are there still people in positions of power that believe this?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Both public and private companies must disclose whether there has been a data breach involving PII and regulated data &#8211; that\u2019s the bottom line. There is no get-out-jail card for private companies.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">California and other states have strictly regulated data breach notification policies based upon the size of the breach not whether or not a company is publicly or privately held.<\/span><\/li>\n<\/ul>\n<p><b><i>#3 <\/i><\/b><b><i>If we were to have a data breach our customers would continue to do business with us if it wasn\u2019t our fault<\/i><\/b><b><i>.<\/i><\/b><\/p>\n<p><b>Research has shown that it doesn\u2019t matter how a breach occurs \u2013 a serious breach picked up by the media can have a negative impact on revenue and company valuation.<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Ask Target<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Then ask Home Depot<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">When consumer satisfaction, trust, and confidence drops due to a data breach it has a huge impact on the bottom line. \u00a0\u00a0Make no mistake, if your customer loses trust and confidence in your ability to protect their data, they will go elsewhere and &#8211; even worse \u2013 they will black list you via social media where their rants can spread like wild fire.<\/span><\/li>\n<\/ul>\n<p><b><i>#4 <\/i><\/b><b><i>If a data breach occurred, our executive team is not liable and won\u2019t be held responsible<\/i><\/b><\/p>\n<p><b>Depends on the publicity and consumer impact of the data breach.<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Whoops! Take a look at the Target breach in Jan 2014.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Executives including the CISO were fired.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">When the impact of a data breach affects shareholder value, consumer confidence and loyalty, and ultimately bottom-line revenue, it\u2019s time to dust off the resume. \u00a0One of the few teams that usually emerges unscathed after a major breach is the Procurement Team \u2013 even in the case of a <a href=\"https:\/\/www.questionpro.com\/blog\/a-brief-teach-on-data-breach\/\">data breach<\/a> attributed to a third party service provider that Procurement opted out of a risk assessment. \u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">How much longer do you think that the Procurement Team will escape accountability?<\/span><\/li>\n<\/ul>\n<p><b><i>#5 <\/i><\/b><b><i>All open connections into my environment are well known and are properly managed and monitored<\/i><\/b><b><i>.<\/i><\/b><\/p>\n<p><b>Be careful \u2013 if you believe you are completely secured, you may miss something.<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">External connectivity needs are changing all the time to support vendor engagements. Temporary connections are often left in place and become permanent and over time it\u2019s these temporary connections that are forgotten or don\u2019t properly protect data and can become a big data security risk.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Precisely what happened at Target and Goodwill.<\/span><\/li>\n<\/ul>\n<p><b><i>#6 <\/i><\/b><b><i>My vendors signed contracts that assert that their security and privacy controls are strong and effective \u2013 so why do I need to do anything more to verify this?<\/i><\/b><\/p>\n<p><b>Common misconception.<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Procurement should use an objective process to determine which vendors require a data security assessment.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">The fact that a vendor asserts these claims won\u2019t protect you in the court of public opinion should a major data breach occur.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Relying on Vendor attestations is never a good idea \u2013 even cherry picking, using the old-school Russian roulette process of assessing vendors is more reliable.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Procurement should implement a <\/span><b>\u201ctrust but verify\u201d<\/b><span style=\"font-weight: 400;\"> model for long-term successful and safe vendor engagements.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Do Any of These Beliefs about Data Security Risk Sound Familiar? #1 If a vendor has been certified as PCI [&hellip;]<\/p>\n","protected":false},"author":124,"featured_media":45745,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[322,6],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>6 Common Misconceptions Regarding Vendors\u2019 Data Security Risk | QuestionPro<\/title>\n<meta name=\"description\" content=\"Do Any of These Beliefs about Data Security Risk Sound Familiar? #1 If a vendor has been certified as PCI or HIPAA compliant, procurement can skip the\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.questionpro.com\/blog\/misconceptions-data-security-risk\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"6 Common Misconceptions Regarding Vendors\u2019 Data Security Risk | QuestionPro\" \/>\n<meta property=\"og:description\" content=\"Do Any of These Beliefs about Data Security Risk Sound Familiar? 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