Data Security Assessment for Small and Medium Enterprises

Table of Contents

• What is security assessment?
• What is data security assessment?
• How are small businesses the most vulnerable to data loss?
• Why is regular data security assessment significant for small businesses?
  • How protected are you from threats?
  • How safe is your data?
• How do you ensure data security?
• How to systematically conduct a security assessment
• Information security assessments with third-party risk management
• Cost of protection must be weighed against cost of a breach
  • The Global Cost of a Data Breach Is Up in 2018
  • The Bigger the Breach, the Higher the Cost

What is Security Assessment?

How do you ensure your business’ security? The regular security assessment is one option to do so. Security assessment refers to the systematic course of scanning, detecting, and evaluating security risks and vulnerabilities in IT systems and business processes, along with providing remedial measures to fight such dangers.

Security assessment also aids in keeping the system and security-related policies up to date. It not only aids in mitigating the internal and external security issues within the organization but also helps to avoid future cyberattacks. It is essential to conduct regular security assessments as the data are potentially vulnerable and can be stolen.

For regular security assessment, it is vital to ensure compliance. For instance, General Data Protection Regulation (GDPR) Gap Analysis Assessments helps enterprises detect gaps in personal data management practices, thereby safeguarding their own standard. When an attack is detected, a roadmap is made for full GDPR compliance. While the GDPR Gap Analysis Assessment is a thorough evaluation of your data assets, their vulnerabilities despite your administrative, physical, and technical safeguards, and the determination of individual and collective risks deriving from an assessment of the likelihood of asset vulnerabilities being exploited by identified threats, it is primarily focused on security within the EU complex.  It is somewhat of an overkill for businesses primarily operating within the US and not dealing with EU citizens.

HIPAA Security & Compliance Assessment helps strengthen security and lessen costs with precise risk assessment. HIPAA Security Assessment performs an in-depth review of the enterprise’s devotion to existing policies and best industry practices. After ensuring countermeasures in the areas such as people, process, and technology, HIPAA Security & Compliance Assessment improves the security system of the organization, and identifies shortfalls in necessary administrative, physical, and technical safeguards.

What Is Data Security Assessment?

Data Security Assessment refers to the evaluation of the “CIA triad,” also known as the confidentiality, integrity, and availability triad, regarding business data and information. It ensures that the files, databases, and accounts of a business are secured along with reducing the risk of data being hacked or damaged. This data security assessment technique provides a detailed analysis of the findings after checking all data-related vulnerabilities and the associated threats that lead to risks to the users along with providing various suggestions and remedial measures.

Do you think software like firewalls and hardware like WIPS are enough to protect your business payment transaction?

Generally, no they are not. Because firewalls and WIPS are not efficient in ensuring full-proof payment security, you ought to rely on other compliances such as, PCI DSS or Payment Card Industry Data Security Standard which guarantee a customers’ data protection. Under PCI Security Standards Council, the five major credit card brands Visa, Mastercard, Discover, American Express, and JCB have created a series of regulations called the PCI DSS. This obstructs data breaches while maintaining a standard of security that accepts, processes, stores and transmits payment card information. To put it simply, it stops the cardholder’s information from falling into the wrong hands.

How is Small Business Most Vulnerable To Lose Data?

Having less investment in IT systems or security ensuring assets or apps, small business firms are one of the most common targets of cyber hackers. SMBs are not properly shielded to defend themselves from dangerous attacks that can harm business-customer relations.

“The average loss per attack averages more than $188,000. Even worse, one report suggests that 60% of small businesses fold within six months of a cyber attack.” (Source: https://www.microsoft.com)

It has been found that the global average cost of a data breach is $3.9 million across SMBs. (Source: www.cybintsolutions.com)  This cost can go even higher if fines, forensic evaluation charges, etc. are considered.  Each year there are newer and more easily initiated cyber threats from local to far-reaching, remote locations that can completely disrupt operations and generate costs to remove and alleviate inflicted damages to small businesses.

Some factors that show why small businesses are targeted, or subjected to a greater risk of data loss are shown below:

• Lack of finance: Funds are one of the chief concerns for any business, the lack of which causing serious issues. SMBs always remain in the developing stage due to the scarcity of finance.
• Incompetent human resources: It may so happen that your organization is equipped with the best security software and refined hardware, but an incompetent employee can hamper your business’s reputation and put your client’s confidential information at risk.
• Insufficient IT resource: When IT resources along with manpower are unsatisfactory, the potential for a data breach to occur increases. Small businesses generally lack efficient IT resources, which can lead to erroneous and often severe data transmission into the wrong hands.
  A recent study reveals extremely troubling data regarding cybersecurity threats against small business firms. According to a 2020 Data Breach Investigation Report for Verizon, the worldwide cost of cybercrime is thought to reach $6 trillion by 2021. Around 44% of cyberattacks are concentrated on small businesses. (Source: getapp.com).

Why are Regular Data Security Assessments Important for Small Businesses?

Small businesses are the easiest targets for cybercriminals. Therefore, regular data security assessments are important to ensure the protection of customer’s data and information.

Consistency in performing security assessments strengthens the whole process of data safety and results in the easy identification, and evaluation of a data breach all the while recommending protective measures, and what to do next.

A thorough data security assessment also provides a baseline to the business to periodically measure and compare with subsequent assessments.  It also leaves a defensible, documented proof of diligent management in the business whether to comply with industry requirements or to assure existing and new clients.

According to an IBM Security study, more than 90% of breaches happened in 2016 due to human error (Source: getapp.com).

Not just that, several reports have identified other reasons for the increase in cyber threats against small businesses. One of the causes is the COVID 19 pandemic. More than 40% of small businesses have been affected by coronavirus spam emails (as per IBM Security study)- (Source: getapp.com).

Primary data that have been targeted include personal information data, health information data, credit card, and financial transaction data, and authentication data, etc.

A security assessment will help you identify the risky behavior of employees and notify you to take action to better train them, while additionally testing your IT systems for vulnerabilities.

How protected are you from threats?

Statistics reveal that around 41% of businesses with less than 250 workers reported a cyberattack in the last twelve months.

How do you stop your business from becoming a statistic? Well, there are certain methods that are cost-effective, or even free!

• To maintain regularity in security assessment. You have to admit the fact that your enterprise, as all business regardless of size, is vulnerable to losing confidential data. A systematic security assessment will increase the chances of preserving not only your clients’ data but also your firm’s reputation.
• Training of the employees. By maintaining regularity in conducting a security training program for your employees, you would be offering them a means of cyber threat detection, while helping them recognize apprehensive links, notifications, attachments and emails, and malevolent websites.
• To keep up with new threats. Keeping up with novel threats is important in order to combat them.
• To adopt cloud computing and storage. By 2021 more than 78% of small businesses will be adopting cloud computing, providing visibility and control with advents like dashboards for speculating cloud usage that will reduce the chance of security failures.

How safe is your data?

One of the most confidential and vulnerable components of all level enterprises is the client’s data. Trust is built on the assumption that a customer’s data will be protected from hackers etc. It is an SMBs responsibility to safeguard their data, one of the many ways to do so by using encrypted access, making it so only the sender and receiver to get access to the data.

How Do You Ensure Data Security?

Ensuring data security is one of the most important jobs of any business, be it a small privately-owned one, or a fortune 500 company. Below we recommend a few steps for confirming data security:

Quarantine Sensitive Files

Most organizations hide confidential information, which requires a secured storage facility. To deter it from falling into the wrong hands, businesses must quarantine these sensitive files in a safer space.  Segmenting data storage so there is not an easy path to steal or infect your critical and sensitive data.  This is also important if you are in a supply chain arrangement as often that relationship gives an opening for unauthorized access to your data.

Track User Behaviour against Data Groups

Data security is ensured when you are able to limit a user’s potential damaging habits with software that showcases user behavior and routinely requires permissions to verify a user’s actions.  Operating on a “need-to-know” basis for users’ access privileges is a good way to limit unauthorized access that could lead to damaging uses and/or disclosures of your business/client sensitive data.

Respect Data Privacy

Data security can be ensured when you respect the privacy of said data. Maintenance of data secrecy is vital not just to keep things running smoothly, but to ensure everyone is on the same page within the firm.

How To Systematically Conduct A Security Assessment?

As previously mentioned, a security assessment is an inevitable part of every business firm ensuring data protection and management. An effective security risk assessment is capable of eliminating data breaches and lessening their impact. If consistency is maintained in information security assessments, your firm will have basic knowledge of meeting demands on its own, without needing to rely on third-party vendors to detect, manage and eliminate risk in terms of security.

Without spending a penny, you can bring things under control. By maintaining regularity in conducting a systematic security assessment, you can mitigate potential risks.

Regarding these security assessments, there are three possible ways to perform them: Security review, Security testing, and Security framework.

All are shown below-

Security review: Security review refers to a collaborative form of work where the risks or vulnerabilities are systematically reviewed from every corner.

• Form an assessment team– The first thing that should be done before security reviewing is to form a dedicated team who will be in charge of the whole assessment process. The team will consist of the owner, IT manager, and all heads of different fields within the firm (if any). They are entitled to carry the assessment forward, prepare reports, and offer suggestions.
• Train employees– Proper training of employees is significant as it will increase their potential to handle cyberattacks with ease and intelligence. The team should subsist of trained professionals and IT experts.
• Review existing security policies– A security policy encapsulates security strategies, backup plans, update timelines, password management, and other associated particulars. Most businesses have security policies, but if the given policy is not up to standard, corrections can and should be made. If your firm lacks a policy, then consider creating one.
• Database of IT assets– The most important task in a business, small or large, is to create a database of Information technology assets. This is comprised of software, desktops, laptops, applications, websites, networks, servers, personal devices, etc. You can’t manage what you don’t know!
• Identify threats and vulnerabilities– Identification of threats and vulnerabilities is one of the most essential tasks within an organization, and it is the prime responsibility of each firm to detect them before any mishaps could happen. Threats could include unauthorized access (malicious or accidental), misuse of information, and data leakage. Vulnerability on the other hand refers to any weaknesses related to security, data, or services. Installation of IT security software can be one remedial measure.
• Impact estimation– The role of the team is important, as each member is designated with the task of preparing a list of impact based on the severity and estimated cost, separately as High, Medium, and Low.
• Likelihood determination– Determination of likelihood is significant as it alerts the firm to fight back at the time of any data breach or security issue. Risks are categorized under the above-mentioned groups, ‘High’, ‘Medium’ and ‘Low’. That qualitative assessment can easily be changed into a quantitative ranking of risks that can guide the management choices of either fixing, externally insuring, or accepting.
• Implement Controls– Controls can be technical or non-technical. Technical controls include computer software, encryption, or tools for detecting hackers or other intrusions, with non-technical controls signifying physical control or policies. The implementation of controls refers to either installation of new software or amendments in the security policies.

Security testing: The process of finding vulnerabilities in software applications or processes.

• Cyberattack simulation test– These simulation tests are authorized. The cyberattack simulation test, for instance, offers a malware detection tool that can help identify risky employee behavior at the time of being trained.
• Scan security and vulnerability– The usage of security software will help to scan risks and vulnerabilities. Security software is generally equipped with smart technology like automated scanning systems.
• Check the latest software– Latest software is generally accepted to have the best, up to date features. The use of vulnerability management software is a great means of guaranteeing the protection of data and information.
• Use Active Directory management– The usage of Active Directory management will assist in finding users that have weak domain passwords. This identification is vital, as this is a quick and simple fix that can make data incredibly more secure.
• Risk mitigation– The success of security assessment tasks relies on the mitigation of data security risks. A business’s primary goal in a breach is the complete removal of said breach, with the data being retrieved in a safe manner.

Security framework or checklist: The planning to weigh up the possibilities of a security risk, and preparation of a framework of those risks for easy reference. This security risk checklist will be helpful for future reference when the enterprise could potentially face all sorts of threats.

The formulation of a security risk framework can be done easily in the following ways:

• Forming a group to prepare the checklist of various security risks. An enterprise is liable to do not one, but multiple tasks. If a section of employees is assigned to make the checklist, tensions in the workplace will be relieved, increasing productivity.
• If the business lacks highly qualified personnel who are experts in risk assessment and management, then they must choose a broader group of operational, financial, and other adjacent risk detecting professionals.
• Employees should be enlightened about policies, terms and conditions, and most importantly the expectations of the enterprise. The role of those chosen employees should be expressed by higher-ups from the business, with the reaffirmation of their position offered continuously throughout their working experience.

Security risk framework must be prepared immediately after the process of security reviewing and testing.

Information Security Assessment With Third-party Risk Management

The inclusion of a third-party into the security management process of a business firm is not common. It is primarily based on urgency or utter necessity. For instance, a third-party security audit provides impartial and genuine audit comments to the partnered firm. It is then verified by the firm’s security auditors, utilizing conforming measures to recognized industry practices from more than 30 (?) governmental and private organizations. This is significant for the continual maintenance of the information security management system. The main benefits include the transfer of knowledge, the reduction of risk through the application of industry-based practices, visibility into unidentified susceptibilities and associated risks, and lastly, the assurance that the audited entity follows given steps to meet organizational and regulatory security requirements.

Cost of Protection Must be Weighed Against Cost of a Breach

What does it mean when someone says that the cost of protection must be weighed against the cost of a breach? Furthermore, what are the cost of protection and the cost of a breach?

Let us begin with the second question. Cost of protection signifies the idea of expenditure done for security assessment. Cost of breach refers to the consequences one organization faces after a data breach. Cost of protection is generally associated with financial spending, while the cost of breach comprises loss of data, misuse of information by an authorized or unauthorized user, failure of the security system, etc.

When they say that the cost of protection must be weighed against the cost of the breach, it is expressed that the cost of protection and cost of the breach are parallel to one another. The estimation of expenditure must be made keeping in mind the damages brought by the data breach.

Both “costs” refer to the involvement of the third-party to analyze the whole scenario of protection cost, and breach cost, and offer their own unique recommendations and remedial measures.

Generally, the cost of a security assessment can vary from $1000 to $50000, based on the seriousness of the issue, assessment scope, and most importantly, business size.

The Global Cost of a Data Breach Is Up in 2018

It is worth mentioning that in the year 2018, the average data breach cost per compromised record was $148. What is even more interesting is the fact that the victims of these crimes took around 28 weeks to detect a breach. From this, we can get an idea as to how severe and complex a data breach can be. It has been predicted that the cost of data breaches and the complexities of them will only increase in the future.

Regions that are severely affected by the data breach and experience the highest influx of cyber-crimes are the USA and the Middle East. These two locations suffer the most with attacks being extremely expensive to recognize and report.

On one hand, we see a rise in data breach cost in 13 countries compared to the five-year average. On the other hand, in comparison to the same average years country like Japan reported a fall in data breach cost. The higher scale and best located an organization is the higher is the cost of the data breach. (Source:www.securityintelligence.com)

The Bigger the Breach, the Higher the Cost

It is estimated that if a data breach consists of 50 million records, the total cost of dealing with that problem would be around $350.44 million.

This is a figure that is only increasing year after year. (Source:www.securityintelligence.com)[/vc_column_text][vc_column_text]The security assessment is one of the most essential actions to be conducted by businesses of any size. From assisting in dealing with cyberattacks, digital or non-digital data breaches, or to giving aid to the user in installing new software with confidence, data security assessment is a blessing for SMEs.

Although initially a security assessment is viewed as a “cost” what it really is an “investment” that enables the business to manage weaknesses in administrative, physical, and technical safeguards, eliminate or significantly mitigate risk, and, in effect, is “loss avoidance”, preventing a loss of business continuity and reputation, both of which are vital to business survival and future growth.