Internal Planning and the Right External Partnerships Can Prevent a Data Breach

16 Oct Internal Planning and the Right External Partnerships Can Prevent a Data Breach

October is Cybersecurity Awareness Month, so we think it is the perfect time to reflect on a few important steps for protecting sensitive client data. Data breaches are everyday threats faced by organizations of all sizes, but particular ones with high-volume transactional documents.

The best defense against these risks starts with prevention—and prevention begins with a strong internal risk management program combined with a security-focused approach to choosing third-party service providers.

Start internally with a plan

No matter what your organization’s size or industry is, today a formal risk management strategy is essential. This plan should include regular risk assessments, performed at least annually or whenever significant operational or technological changes occur. These assessments help uncover vulnerabilities within your infrastructure, systems, and even workforce.

Equally important is assembling an Incident Response Team (IRT), trained in your systems and compliance requirements. This team should be prepared to act swiftly in the event of a breach, managing the immediate response, assessing the root cause, and identifying steps for improvement.

Core elements of effective internal risk management

A strong risk management plan should start with:

• Identifying risks across your organization. This involves evaluating the assets and digital infrastructure your operations depend on and analyzing how these elements could be exploited. Understanding your IT environment, including asset management and business processes, is crucial to building a resilient strategy.
• The next step is protection. Implementing strict access controls limits who can view or manipulate sensitive data. Employees should only access what they need for their roles and permissions should be updated as roles change. Maintaining strong password policies, regular audits, and proper training are key components to ensuring that data is handled responsibly.
• Detection is another essential element. Systems should be continuously monitored for unauthorized access or suspicious activity. Automated alerts and regular system checks can help identify breaches early, giving your organization valuable time to respond before more damage is done.

Finally, once the immediate threat is contained, it’s important to reassess affected systems, review recent hardware or software changes, and determine if internal procedures were bypassed or ignored. From there, policies should be updated, security gaps closed, and all lessons learned documented and shared across relevant teams.

Vetting External Third-party Providers for Security

Internal security is only half the battle. Third-party providers handle your most sensitive data. Many costly breaches occur due to poor oversight of vendor practices. That’s why due diligence in selecting secure partners is critical.

Start your evaluation by:

• Ensuring your third-party provider performs regular risk assessments. Ask about their contingency planning, which should include business continuity strategies, disaster recovery protocols, and a redundant IT infrastructure. These plans should be tested annually, with any identified gaps immediately addressed.
• Evaluate the provider’s technical safeguards. Encryption, multi-factor authentication, firewalls, malware protection, and round-the-clock network monitoring are all necessary components of a secure IT environment. Ask whether they conduct security training for employees and enforce policies around password management and safe information exchange.
• Make sure your providers have a well-documented breach response. This includes protocols and service level agreements that include notification timelines. Additionally, confirm they carry cybersecurity liability insurance to protect your organization in case of an incident.
• Look for third parties with up-to-date security certifications. These credentials indicate that the organization has passed rigorous audits and meets established security standards. For instance, a provider that handles credit card data should maintain PCI compliance, while financial institutions may look for a SOC 2 report to ensure adherence to GLBA and other relevant regulations.

Stay proactive and protected

As cybersecurity threats and data breaches remain a constant risk, maintaining a strong internal security program—and thoroughly vetting every external supplier—is essential to protecting your business and ensuring long-term success. At Datamatx, security is our top priority. We’re committed to helping your business build and maintain a resilient security framework with expert guidance and proven best practices.