Cybercriminals want your data and they don’t care about the fallout for your organization. The theft of personally identifiable information (PII) and financially-inspired attacks pose the most significant threats.
When attackers try to penetrate systems, your organization can easily suffer collateral damage as your reputation with both customers and other organizations takes a hit. But you can get a step ahead of attackers by assessing the risk profile of third-party vendors you’re considering doing business with—as well as those you’re already partnering with.
Impact of Damage to Your Reputation
Reputational damage can result in loss of trust, customers, investors, and partners, as well as negative media attention.
Loss of Trust
One of the most significant impacts of a cyber attack is the loss of trust from customers and potential business partners. For customers that are considering trusting you to safeguard their personal data, a cyber attack is a red flag that their information may be safer elsewhere.
Similarly, another organization that’s considering partnering with you may think twice if they think either their data or that of their customers may be at risk. Also, in any partnership, the brand identity of both parties gets factored into the equation. An organization that appears to be a preferred target of hackers can be seen as one that may degrade the strength of a partner’s brand.
Loss of Customers
Customers may, understandably, decide to distance themselves from a company that has suffered a significant breach. They may reason that if their data has been exposed once, it can be exposed again. Also, in a global marketplace with so many options, customers may feel they can find a safer solution with one of your competitors. A swift exit may result.
Negative Media Attention
Bad news makes good money. Media outlets thirst for dramatic headlines, regardless of the impact they can have on a company or its principals. As a result, even a relatively small breach can make the first fold of a website or the front page of a paper. But you can limit your exposure to these and other effects of reputational damage by managing your risk.
How to Manage Your Reputation
Managing your reputation begins with limiting your exposure to potential cyber attacks. You can do this by:
- Improving your risk profile. By reducing the number of risk factors integrated into your system, you can eliminate several attack vectors.
- Achieving complete portfolio visibility of third-party digital ecosystems. Knowing the risk each vendor presents can help you determine which ones to do business with.
- Increasing your capability to predict risk. By understanding which third-party vendors present the most risk—and why—you can systematically reduce the chances of a future event, effectively predicting what may happen.
With CyberGRX, you get a vast storehouse of risk data related to many thousands of third-party vendors. You can see, at a glance, the degree to which each one increases your risk and use that data to make a well-informed decision. To learn more about how CyberGRX can help you manage your third-party cyber risk, request a demo today.
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