Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .


Companies around the world are striving to get an ‘A’ in cybersecurity

Companies around the world are striving to get an ‘A’ in cybersecurity

Matthew McKenna, VP EMEA at SecurityScorecard

Credit ratings are a longstanding concept that the majority of people are familiar with, and that most of us frequently concern ourselves with.

A credit check reviews a company’s financials and assigns the score by evaluating whether the company can protect its financial assets and keep from going into debt. Security ratings mirror this concept by reviewing a company’s cyber risk and allocates a score by evaluating to what degree the company can protect its digital assets and keep from being breached. Similar to school reports, security ratings deliver companies and their third-party suppliers with a grade of A-F based on how secure the organisation is and provide them with actionable data on where improvements can be made so they can improve their security and risk posture.

What does a good security score mean?

Security ratings assess an organisation on how well it protects its external facing assets. In a digital world, the importance of data and a company’s protection of that data parallels your income and protection of financial assets. Ultimately, security ratings are indicators of cybersecurity health. A good security rating acts as an organisation’s asset, whilst a poor rating places an organisation at risk, making the data landscape a liability.

Facilitating board level discussion

No one likes to be graded poorly for anything, and board members in top end businesses are no exception. Security is a topic which is commonly neglected by the C-Suite. CISOs work incredibly hard to ensure their company’s cybersecurity is up to scratch, however, they struggle to demonstrate this to the board. No breach proves good work, but this tends to go unnoticed.

However, security ratings can change this. By providing its board members with a report card outlining their security posture, the CISO’s position becomes much more valuable, and his or her work gains attention. A good security rating proves the good work of a CISO.

Not only do security ratings help the CISO of a company gain recognition from the board, they also have a part to play in enabling efficient and clear third-party diligence. Companies seeking to hire vendors need to prove to their boards that they have thoroughly vetted new business partners. Audits and paper-based questionnaires do provide insight but, accessing independently obtained data using a security ratings platform assures the board and auditors of due diligence.

The symbiotic relationship between companies and third parties requires the open conversations that data provides. The more information for both, the better the working relationship.

A complement to other defences

Security ratings are not the only thing a company needs to guarantee total security, so they are not intended to be a catch-all or guarantee for a breach-free future. Instead, they are a measure that helps organisations understand the potential risks that may result from cybersecurity posture weaknesses.

Security ratings can help organisations to remediate vulnerabilities by highlighting weaknesses in their security posture and advising on how they can fix them.

Partners and customers

When speaking with prospective customers, service providers need to be able to provide proof of information security controls and good security performance. A strong security rating can validate that an organisation is practicing good security hygiene and is more likely to work securely with that organisation’s data and IPR. Being able to provide this information generates confidence and loyalty amongst a company’s customer base.

As mentioned, security ratings not only look at a company’s individual security posture, but also that of its vendors. Companies looking to hire vendors require security posture assurance and insight into the risks those vendors pose. To manage third party risk, an organisation can leverage the risk rating to determine the third party’s security profile.

Cyber insurance – is the industry too cautious?

Cyber insurance is designed to financially protect businesses from data breaches and is an important component of enterprise risk mitigation strategy. Underwriters practice caution when issuing cyber insurance policies, because it can be difficult to easily understand the cyberhealth of their clients.

This is where security ratings come in. Accurate security ratings can help carriers, reinsurers, brokers and risk managers better manage risk and continuously monitor policy holders. It’s all about visibility. By being able to accurately evaluate a company’s security posture, insurers can measure how big or small a risk they would be taking if they issued a policy.

A change in the market

Security ratings are an emerging standard; however, they will soon become a norm amongst businesses worldwide, used as commonly as credit ratings. As the cyber threat continues to both spread and become more sophisticated, security is becoming a priority on business agendas. Enterprises are looking for an independent overview of the security posture of those they choose to work with. Security ratings can provide that.

Global Banking & Finance Review


Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post