Regardless of whether you're a CISO, Vice President of Security or an individual contributor, it's safe to say you understand the importance of cybersecurity risk management. Information technology has increased the speed, scale, and convenience of all aspects of commerce while increasing the risk of data leaks, data breaches, malware, and other cyber threats.
The financial impact of poor cybersecurity is reflected in the ever-increasing cost of data breaches globally, which grew to $3.92 million in 2019 according to research done by the Ponemon Institute.
The bad news is that the scope of what is considered sensitive information is growing rapidly, as are the number of extraterritorial data protection laws. Extraterritorial means your organization must comply with them if you process any of their citizen's data, regardless of whether you operate in their jurisdiction.
These new laws bring increased reputational and regulatory impact, which is why many organizations are investing in security ratings tools to help them instantly assess security postures and to scale their vendor risk management program. The financial, reputational, and regulatory risks of mismanagement of first, third, and increasing fourth-party risk are too large to ignore.
The issue is, as you likely know, cyber risk management is a team sport that requires the translation of technical details like security postures, cybersecurity risk assessments, vendor questionnaires, and information security policies into terms non-technical stakeholders can grok.
We believe security ratings are one of the easiest ways to do this without adding operational overhead to your organization. They provide instantaneous assessments of cyber risk, much like a credit score does for credit risk.
And we're not the only ones that think that. According to Gartner, cybersecurity ratings will become as important as credit ratings when assessing the risk of existing and new business relationships…these services will become a precondition for business relationships and part of the standard of due care for providers and procurers of services. Additionally, the services will have expanded their scope to assess other areas, such as cyber insurance, due diligence for M&A and even as a raw metric for internal security programs.
We wrote the post to solve the main issue many of our prospects face: the increasing number of security ratings providers to pick from including BitSight, SecurityScorecard, RiskRecon, CyberGRX, and Panorays.
For example, BitSight, SecurityScorecard, and RiskRecon focus primarily on the assessment of business partners, vendors, and service providers, if you want to see see how these services stack up read our other comparison posts:
In contrast, UpGuard has a complete continuous monitoring risk management solution that handles behind-the-firewall risk with Core, vendor risk management with Vendor Risk, and data leak detection and cybersecurity performance management with UpGuard BreachSight.
In this post, we'll help you understand what to look for in a security ratings solution, so you can make an informed decision about whether to go with BitSight or UpGuard.
But before we dive into the specifics, it's important to understand what security risk ratings are and why they are important.
BitSight Technologies overview
BitSight Technologies is a Cambridge-based company that aims to quantify the external cybersecurity posture of organizations using publicly accessible data. Its FICO-like BitSight security rating is used by underwriters for pricing cyber insurance, 3rd party research for third-party risk teams, and due diligence research for private equity and M&A activities, and more.
Additionally, these security ratings are used for security performance management and the assessment of third and fourth-party risk.