Australian business suppliers and data custodians are at risk with two high profile company collapses in the news as a result of data breaches. Cambridge Analytica, the firm behind the recent misuse of 87 Million Facebook users data has commenced insolvency action and will cease trading immediately. "The siege of media coverage has driven away virtually all of the Company's customers and suppliers," the company's statement said.
Closer to home, Precedent Communications, the 3rd party supplier behind the data breach suffered by the Australian Red Cross Blood Service, was liquidated only a few months after the breach became public.
The impact of a data breach when you are the 3rd party supplier or data custodian will be not be insignificant: existing customers will ask questions (lots of them), it will make it hard to win new business, it will increase your insurance premiums and it may even close your doors.
3rd party service providers need to understand the data breach risk they face and what is required of them to manage it appropriately. Recent research suggests Australian business and suppliers are still well underprepared and there is much to be done.
Two months in for the Australian Notifiable Data Breach act and less than three weeks before the EU GDPR kicks off, Australian business, suppliers and data custodians are on notice: get your cyber security risks and controls in order and have an independent audit undertaken, review your procurement practices and complete a data audit post haste.
Get in touch if you want to discuss your business in the context of these important changes or stay across news on our dedicated cyber security webpage.
In recognition that cyber risk is only going to become more pronounced as new technologies come on stream, most organisations accept that they need to get better at managing the threat however many are not doing enough and are simply underprepared.