Cybersecurity Audits for Insurance, Contracts and Supply Chain

Summary: More and more SMBs must show proof of network security for insurance policies, vendor or client contracts and supply chains. To properly prepare your business for cybersecurity audits, enlist the help of a professional, small business IT support company to ensure your cybersecurity compliance.

The word “audit” strikes fear in the heart of anyone who has been through an IRS audit. However, cybersecurity audits are different because they serve all parties involved with your business. SMBs, notoriously under-protected, benefit from computer security audits because they are intended to identify vulnerabilities and associated risks. Regardless of the purpose of the audit, knowing your computer network’s weaknesses will help you secure those vulnerabilities. Ensuring compliance protects your network as well as those you connected to you. Enlisting a professional small business it support company with IT security specialists on staff will help streamline compliance.

Audits to Demonstrate Cybersecurity Compliance

There are different types of cybersecurity audits depending on the kind of business, its industry-specific needs and cybersecurity compliance requirements. As the saying goes, there is power in knowledge, and there are many benefits of performing computer security audits:

• Discovering and Securing Vulnerabilities – Whether or not an audit is required for legal or contractual obligations or to ensure that your business network is secure, cybersecurity audits allow businesses to proactively eliminate vulnerabilities before a cyberattack.
• Assessment of Cyber Security Control Tools – Enforcement of cyber security policies can only be monitored and enforced with the proper tools in place. A professional small business IT support and security company can install the appropriate software to help you maintain employee compliance and manage day-to-day cyber security.
• Reducing the Chance of Paying Penalties – If your business is a high-compliance company such as a medical practice, law or accounting firm, improper cyber protection can lead to fines, legal fees and lawsuits. The cost of an audit is far less than those costs. HIPAA compliance cyber security for medical practices is stringent, as patients’ private health data is protected by law. Also, the consequences of non-HIPAA compliance cyber security could lead your SMB to bankruptcy.
• Preparation for Incident Response – An audit provides a deep understanding of possible vulnerabilities in your computer system and what actions are required in the event of a cyberattack.
• Unauthorized Access Protection – Protecting your SMB’s data from unauthorized access is a primary goal of cyber security. By assessing permissions and policies, many access issues can be resolved. Also, a thorough analysis of endpoint vulnerability can help reduce the chances of outside bad actors breaching your system. Access protection is crucial and is especially important if your business requires HIPAA compliance cyber security.
• Improved Cybersecurity Policies and Training – The more you understand your computer system and security protocols, the more thorough and effective your employee security awareness training will be.
• Increased Trust and Confidence – Trust is difficult to earn and even more difficult to regain once lost. Network security audits help bolster confidence with your business’s clients, vendors and suppliers because they show your diligence in remaining secure.

Supply Chain Cyber Security

Supply chain cyber security is the overall risk management for your business’s supply chain concerning vendors, suppliers, transportation and logistics. Any business entity or other outside organization that connects in any way to your network presents risks that must be analyzed and mitigated. Supply chain cyber security is an ongoing process that requires “all hands on deck.” A cybersecurity audit will uncover risks presented by outside parties. Those parties might be compelled to change their supply chain security processes to continue working with your company. Cybersecurity compliance is mandatory for everyone who works with your company.

FedRAMP Cybersecurity

The U.S. General Services Administration defines FedRAMP cybersecurity as “a government-wide program that provides a standardized approach to security assessment, authorization, and continuous monitoring for cloud products and services. FedRAMP empowers agencies to use modern cloud technologies, emphasizing security and protection of federal information, and helps accelerate the adoption of secure, cloud solutions.” FedRAMP comprises the Joint Authorization Board (JAB) and the Program Management Office (PMO). JAB members are high-level federal information officers from the General Services Administration and Homeland Security. JAB is the governing and decision-making component of FedRAMP cybersecurity.

The scope of a computer security audit depends on the type of business being audited and what processes are involved. However, there are basic operations that are part of most audits. Here is a list of areas covered:

• Network Security – Network security includes assessment of access points, antivirus configurations, network traffic monitoring and any vulnerable network components. For employees who work remotely or travel for work, cyber security should include IT support for remote employees.
• Data Security – Data security is the most critical area of cyber security. An audit will include analyses of encryption usage, access controls and methods of handling sensitive information.
• Physical Security – Physical security includes which and how employees access your physical workplace, evaluation of alarm systems and physical storage security, such as screen locks and disk encryption. It also includes an assessment of surveillance capabilities.
• Operational Security – Operational security assesses your employees’ adherence to cyber security policies and procedures and system and information safeguards in place, working in tandem with your current business security procedures and policies.
• System Security – System security includes patching and hardening of security processes, exceptional privilege account management and assignment of role-based access.
• Software Security – SMB owners often overlook software security. However, software can afford cybercriminals a springboard for launching an attack. Third-party applications are notorious for containing malicious code. Also, it is vital to assess how your software processes data securely and any flaws in the process that might become a target for cyber thievery.

SMBs should not fear cybersecurity audits because whether or not they are required, it is much better to learn your business’s cyber vulnerabilities and have them locked down before a cyberattack. The better prepared you are, the stronger your cyber incident response will be. Demonstrating proof of cybersecurity compliance can help avoid contracts and insurance coverage being cancelled due to non-compliance and signals your company’s commitment to data protection.