Cyber security risk rating is today’s one way of security assurance. This is especially helpful when working with third parties. May it be with vendors, and business partners.
In this article let us consider what is a cyber security risk rating? And what are the benefits of these security ratings?
What Is A Cyber Security Risk Rating?
As technology increases, and so do risks. Business risks today are more involved with cyber security. Your potential business partner is a potential risk. Not to mention your third party vendors. But, you need them. On the other hand, your business is also a potential risk to theirs.
Though risks are certain, it is somehow the reality of today’s norm. But, you sure can do better.
Cyber security risk rating, cybersecurity ratings, or security ratings. Or whichever you may have heard it. It is ‘an objective, data-driven, quantifiable measurement of an organization’s overall cybersecurity performance.’
Basically, it puts your holistic security practices in a ‘rating’. Thus, this builds an organization’s reputation in security. It not only benefits the organization’s reputation. But it also helps in internal risk management.
Moreover, some cybersecurity rating companies such as SecurityScorecard. They do rate companies with the scale of A to F.
Top Benefits Of Having Security Ratings
Aside from what’s mentioned previously, consider the following benefits. Of having your organization’s security ratings.
- Gives an edge to more business partnerships. The better you score, the better you’ll have chances of business opportunities.
- It also ensures your customers’ protection. Because it will make them feel secure having your products or services. Security Ratings help you gain their trust.
- On the other hand, it also benefits your internal risk management. Because it allows for continuous monitoring. You’ll therefore be kept updated with the holistic cyberhealth.
- The same goes with your business partners. This assures them of having to work with you. Likewise, you will gain insight of theirs too. You will know how to better manage your partnership with them. Based on their security rating.
- For instance, you score ‘low’. This ought to compel you for doing more security advancement.
- Moreover, this also provides transparency. To the business’ stakeholders.
Mitigates Third Party Risk
It is true that business runs from each other. But so are the risks associated with the partnership. So having a well-maintained vendor risk management aids a lot in mitigation.
On the other hand, an aspect of better risk management. Is to have and identify these security ratings. That is of your own company. And most of all, of your vendors or your third-parties.
Yes, it helps you gain better insight of your partner’s risk management. As a result, this will help the organization address third party risks better.
This includes the decisions you make with partnership. Also, with the decisions you make for the organization itself.
Making decisions affects the whole company. Thus, having security ratings can help the board. It can help them come up with a data-driven decision. Moreover, it helps you make better due diligence with cybersecurity.