Friday 2nd June 2023

BLOG: Exploring How Outsourcing Amplifies Cyber Risks

While outsourcing can offer numerous benefits, it is crucial to acknowledge the potential cybersecurity risks that accompany this practice. As companies delegate critical processes and entrust sensitive data to external vendors, the inherent complexities of outsourcing create a conducive environment for cyber threats. We will explore the underlying reasons why outsourcing can amplify cyber risk, highlighting the significance of proactive measures in mitigating these vulnerabilities


Expanding the Attack Surface

Outsourcing expands an organisation’s attack surface, effectively increasing the number of potential entry points for cybercriminals. By involving external entities in core business operations, companies inadvertently introduce additional interfaces, systems, and networks that may possess vulnerabilities. Each connection point, whether it be a third-party service provider or a subcontractor, creates an avenue through which cyber threats can infiltrate the organisation’s ecosystem.

Limited Control and Visibility

Outsourcing inherently relinquish a degree of control over critical processes and data management. Entrusting sensitive information to external parties means relying on their cybersecurity practises and protocols. Unfortunately, organisations often lack complete visibility into the security measures employed by their outsourcing partners. This lack of control can leave companies exposed to potential security gaps, as the outsourced entities may not prioritise cybersecurity to the same extent or possess similar standards.

Inadequate Due Diligence

The selection process for outsourcing partners requires careful consideration, as organisations need to ensure the chosen vendors align with their cybersecurity requirements. However, due to time constraints, budgetary concerns, or a lack of expertise, organisations may conduct inadequate due diligence when selecting outsourcing partners. In such cases, the chosen vendor may possess weak security practises or may even be compromised themselves, potentially exposing the organisation to increased cyber risk.

Weakened Incident Response Capabilities

Cybersecurity incidents are inevitable, regardless of the preventive measures in place. When outsourcing, organisations face the challenge of coordinating incident response efforts with external parties, leading to potential delays and miscommunications. The lack of a unified incident response strategy can hinder effective mitigation and recovery efforts, prolonging the impact of a cyber incident and amplifying the associated risks.

Insider Threats

Outsourcing involves sharing sensitive information and granting system access to individuals who are not part of the core organisation. This introduces the possibility of insider threats, wherein employees of the outsourcing partner may misuse or exfiltrate data for personal gain or malicious intent. Without proper oversight and stringent contractual agreements, organisations can fall victim to these internal threats, further elevating their cyber risk exposure.

While outsourcing undoubtedly offers numerous advantages, organisations must acknowledge the potential consequences it poses to their cybersecurity posture. By expanding the attack surface, reducing control and visibility, conducting inadequate due diligence, compromising incident response capabilities, and exposing themselves to insider threats, organisations inadvertently amplify their cyber risk. To mitigate these vulnerabilities, proactive measures such as comprehensive due diligence, stringent contractual agreements, ongoing monitoring, and robust incident response coordination are imperative. By prioritising cybersecurity throughout the outsourcing process, organisations can strike a balance between reaping the benefits of outsourcing and safeguarding their critical assets from malicious actors.

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