Data Breach Statistics: The Importance of Vendor Due Diligence

Data breaches have become a common occurrence in the digital age, with millions of individuals and companies falling victim to cyberattacks every year. While many businesses are taking steps to protect their own data, they often overlook the risks associated with working with third-party vendors.

According to a recent study by the Ponemon Institute, 59% of companies have experienced a data breach caused by a third-party vendor. This alarming statistic highlights the importance of performing vendor due diligence to ensure that the companies you work with are taking adequate steps to protect your sensitive information.

But what exactly is vendor due diligence, and what questions should businesses be asking themselves and their vendors to prevent data breaches? Let’s dive in.

What is Vendor Due Diligence?

Vendor due diligence is the process of evaluating the security measures of third-party vendors before entering into a business relationship with them. This process involves assessing a vendor’s security protocols, data handling practices, and overall cybersecurity posture.

Questions to Ask Yourself

Before entering into a business relationship with a third-party vendor, there are several questions you should ask yourself to ensure that you are taking adequate steps to protect your sensitive data:

1. What type of data will the vendor have access to?
2. What are the vendor’s data handling policies and procedures?
3. What is the vendor’s track record with data breaches?
4. What type of security protocols does the vendor have in place to protect against cyberattacks?
5. What are the vendor’s disaster recovery and business continuity plans?

Questions to Ask Your Vendors

In addition to asking yourself these questions, it’s important to ask your vendors about their security practices to ensure that they are taking adequate steps to protect your data:

1. What type of security protocols do you have in place to protect against cyberattacks?
2. How often do you perform security assessments and audits?
3. What is your disaster recovery and business continuity plan?
4. How do you ensure that your employees are trained on cybersecurity best practices?
5. Have you experienced any data breaches in the past? If so, how did you respond to them?

Conclusion

Data breaches caused by third-party vendors are becoming increasingly common, making it more important than ever to perform vendor due diligence before entering into a business relationship. By asking the right questions and assessing a vendor’s cybersecurity posture, businesses can take proactive steps to protect their sensitive information and prevent costly data breaches.

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