Most midsize business leaders view a data breach among their top risks and a majority consider IT security ‘very important’ when selecting a supplier. They have good reason to be concerned: 43 percent had experienced a data breach in the prior three years, and 13 percent have had a supplier’s data breach impact their business information.
The Hartford survey found most midsize business leaders (82 percent) consider a data breach at least a minor risk to their business. Nearly one-third (32 percent) view it as a major risk.
Recognizing the data risks involving suppliers, more than half of the midsize business leaders (53 percent) surveyed consider IT security and data protection practices very important when selecting a supplier. By comparison, 36 percent consider a supplier’s contingency planning and 28 percent view a supplier’s location relative to their business as very important.
Given what is at stake in terms of a company’s operations and reputation, evaluating a prospective supplier or vendor‘s IT security and data protection protocols against current best practices should be a critical part of a company’s due diligence process,” said Joe Coray, vice president of The Hartford’s Technology & Life Science Practice.
The Hartford’s 2014 Midsize Business Monitor was fielded from September 16-23, 2014. More than 500 owners and C-level executives of midsize businesses headquartered in the U.S. with annual sales or revenues of $10 million to $1 billion participated in the online survey, which had a margin of error of +/- 4.3 percent at the 95 percent confidence level.