SOX Compliance Requirements

What is SOX Compliance & What are the Requirements? (2023 Update)

As cyberattacks increase and intensify, the hardening of security measures becomes even more of a necessity, as does compliance with a network of laws and regulations, including SOX compliance.

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SOX Compliance Requirements

What Is SOX Compliance?

First passed in 2002, the Sarbanes Oxley Act (SOX) requires publicly-traded companies to maintain transparency in financial reporting, preventing fraudulent accounting activities, protecting investors, and improving investor confidence.

The Act includes compliance requirements about external auditors, corporate governance, internal control assessments, and financial disclosures.

SOX IT Compliance Requirements and Reporting

When it comes to IT, SOX compliance requires firms to have policies and procedures in place to prevent, detect, and disclose material cybersecurity risks and incidents. Companies also need to prove that they have data safeguards and procedures in place and that they are operational. This includes quality access management, preventative security measures, and redundant and secure backups.

Additionally, another requirement is that security systems must be able to detect data breaches, and the organization needs a communication plan for notifying leadership and investors of identified breaches. In reporting and during an annual SOX compliance audit, businesses must attest to and provide evidence that these internal controls exist.

One extremely challenging SOX cybersecurity requirement is that businesses are responsible for reporting material cybersecurity risks within four business days after the registrant determines that it has experienced a material cybersecurity incident. This can mean that an organization must disclose a risk or incident before regular reporting or a yearly SOX audit.

Related Content → IT Security and Compliance. What’s the Difference?

SOX in 2023

In both 2011 and 2018, the SEC published guidance for interpreting existing rules in connection with cybersecurity threats and incidents.

However, in 2022, the SEC recommended a proposed rule that would require registrants to provide enhanced disclosures about “cybersecurity incidents and cybersecurity risk management, strategy, and governance.” This rule is part of the Fall 2022 Unified Agenda of Regulatory and Deregulatory Actions released by the Office of Information and Regulatory Affairs. SEC Chair Gary Gensler released a statement in early 2023 acknowledging the Commission’s support of the proposed agenda.

It is significant to note that SOX requires signing officer(s), typically an Executive Officer, to attest that the information in their internal control and financial reports is accurate. They cannot contain any false statements, nor can they omit material information. They also need documentation demonstrating that the organization is SOX compliant. Intentionally or inadvertently generating misleading compliance reports or falsifying information not only leads to noncompliance but can also result in upwards of $5 million in fines and 20 years in prison.

In 2022, the news that Uber’s CISO was convicted of federal charges for failing to disclose a 2016 data breach broke, demonstrating just how severe the consequences of non-compliance can be for individuals as well as companies.

Understanding Risks and Their Impact

How do you know what your material cybersecurity risks and incidents are? How do you know if your firm has experienced a breach?

If your IT team does not have the expertise to continuously analyze risks and understand SOX compliance requirements, they may not see correlations that signify a material risk. Without expert guidance, your firm may miss the context or severity of threats. Businesses may not report minor security incidents deeming them to be immaterial. But what if all these smaller threats and incidents turn out to be a much larger problem? Unable to see the connection between events, an organization could unintentionally omit a material cybersecurity risk in its reporting.

Even worse, failure to evaluate the risk appropriately can lead to security breaches, data loss, lawsuits, and other costly damages.

With such high penalties for failure to appropriately disclose material cybersecurity risks and incidents, it is critical for businesses to implement compliance processes and risk management practices to identify and assess threats across their network. Identified risks need to be assessed and treated appropriately and promptly. This process of assessing and implementing measures to modify risk is known as risk treatment.

To understand the risks in your firm’s environment, it needs continuous network monitoring and the expertise and systems for evaluating and conducting a risk assessment. Partnering with an IT firm with specialized knowledge of the compliance requirements outlined in SOX is ideal to ensure compliance and improve your security posture.

Actively Monitoring for Cybersecurity Threats

There is a difference between performance monitoring and cybersecurity monitoring.

Performance monitoring lets you know if systems are operating efficiently, but it doesn’t tell you what security threats exist or the severity of those risks.

In 2023, the risks from malicious cyberattacks and technology are substantial and are a constant threat. It is no longer acceptable to run occasional cybersecurity scans and assume you are seeing an accurate picture of your overall security posture. Instead, to have a complete understanding of the risks and incidents that occur on your network, you need 24x7x365 activity monitoring.

With a managed detection and response (MDR) platform, a team of security analysts with skills in forensic analysis can identify, evaluate, and provide a response plan to threats and breaches within your network.

SIEM Technology

Without the help of security analysts and security information and event management (SIEM) technology, you may not see the significant link between small risks or incidents.

Security experts use SIEM platforms to correlate and analyze threats. This helps to provide context and severity of risks, which is instrumental in determining materiality.

Keep in mind that you need a security expert to utilize the full benefits of these types of internal security controls.

Meeting SOX Compliance Requirements with Comprehensive Cybersecurity

As mentioned, to maintain SOX compliance, your organization needs to be able to measure the materiality of cybersecurity risks and incidents.

Without the right tools, expertise, and testing, your business could experience a breach causing tremendous financial costs, permanent data loss, or even closure.

Even if your organization is not required to be SOX compliant, implementing internal controls and data protection procedures increases your overall security posture. For a private company or a non-profit, which are not mandated to have SOX compliance programs, creating and monitoring security controls is considered to be a cybersecurity best practice.

Related Content →  Evaluate your security readiness with our  Cybersecurity Checklist.

To learn more about SOX cybersecurity and compliance solutions, reach out to Coretelligent’s team of experts.

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Financial Services Compliance

Financial Services Compliance: What to Know in 2023

Financial services compliance is a dynamic target with extreme consequences for non-compliance. For financial services firms, there is absolutely no room for error. Firms must remain vigilant to ensure they meet their obligations under a growing set of laws, regulations, and standards.

The Intersection of Financial Services Compliance & Technology

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Financial Services Compliance

In the financial services sector, compliance has always been a significant concern. While earlier methods of compliance reporting were largely manual, the intricate nature of today’s financial services compliance and security challenges renders such methods obsolete. To navigate this intricate landscape, firms need to move beyond traditional check-box compliance methods. Instead, they should adopt comprehensive compliance platforms complemented by specialized advisory services.

Regulatory agencies introduce security and compliance measures to bolster the global economy’s stability and safeguard consumer privacy. The surge in third-party affiliations further underscores the importance of enhanced management to minimize risk. Meeting the specific reporting and data management standards set by these entities requires financial services firms to establish intricate, often expensive, and time-intensive systems. Yet, the cost of non-compliance is even steeper, with potential repercussions ranging from fines and sanctions to reputational damage and revenue loss.

The Compliance Landscape for Financial Services

Highlighted below are several of the most critical regulations and standards that must be met by the financial services sector:

  • FINRA

The Financial Industry Regulatory Authority (FINRA) is an independent body that oversees the brokerage community, assisting both investors and firms. Its primary goal is to maintain a safe and fair market. To achieve this, FINRA regularly updates its rules in response to global market changes. A significant focus of these regulations is on advanced cybersecurity measures. These standards aim to guard against cyberattacks, identify system breaches, and establish plans for business continuity and breach responses.

  • SEC

Financial firms must adhere to regulations set forth by the Securities and Exchange Commission (SEC). The SEC promotes fairness, transparency, efficiency, and compliance of all publicly-traded companies in the U.S. Financial firms are required to comply with the SEC’s Financial Reporting Requirements, which include annual and quarterly reporting as well as other periodic filings. Financial firms must also adhere to SEC governance and risk management standards, such as cyber risk policies, identity theft prevention plans, data security processes, insider trading safeguards, and more.

The SEC Chair, Gary Gensler, recently expressed his support of the Office of Information and Regulatory Affairs Fall 2022 Unified Agenda of Regulatory and Deregulatory Actions, saying the agenda “reflects the need to modernize our ruleset, moving deliberately to update our rules in light of ever-changing technologies.”

  • SOX

First passed in 2002, the Sarbanes-Oxley Act (SOX) was established to protect individuals by increasing transparency in the financial services sector and requiring formalized checks and balances for individual entities. In today’s world, SOX compliance is aimed at limiting access to internal systems that contain confidential or financial data. Fortunately, SOX internal controls are also solid business practices that can enhance your firm’s cybersecurity risk profile and reduce the threat of insider attacks.

  • Due Diligence Requests (DDQ)

Compliance with investor due diligence requests (DDQs) has become more and more complex as the Financial Services industry grows. DDQs typically involve detailed information about financial operations, accounting practices, and related risk factors. Responding to these inquiries can be difficult, but it’s necessary in order to maintain regulatory compliance and build trust with investors. Financial services firms need to develop a reliable system for tracking and responding to DDQs quickly and accurately, as well as an audit trail of the communication process to prove compliance.

  • Cybersecurity Insurance

Cyber insurance carriers have expanded their compliance requirements and increased their schedule of audits to ensure that firms have robust controls in place. These audits assess security protocols, policies and procedures, disaster recovery plans, and more. Financial services firms must plan ahead for these inspections by having the right personnel prepared with well-documented processes and systems to prove compliance. Additionally, firms should have an external cybersecurity partner who can provide executive-level support to ensure the audit is successful.

Cybersecurity & Compliance: What’s the Difference?

Security and compliance are often mistakenly assumed to be synonymous, yet they are, in fact, distinct. Security and compliance are both essential, yet their purposes vary. While security is meant to protect data and infrastructure, compliance serves as a means of meeting legal or regulatory obligations.

Compliance and security have similar objectives around managing risks and securing sensitive data and systems but have different processes and workflows to accomplish these goals. Put simply, compliance is the act of meeting contractual or third-party regulatory requirements by adhering to set guidelines and standards. On the other hand, security requires implementing effective technical controls in order to safeguard assets from cyber attacks.

Both are critical for the financial services sector.

Solving Compliance Now & Into the Future

As we move into 2023, financial services firms face an evolving landscape of stricter and more comprehensive regulations. To navigate this, it’s imperative for these firms to stay informed and adapt. They should invest in the right IT infrastructure, recruit skilled personnel, and collaborate with trusted external partners. Moreover, having efficient systems to address DDQs promptly and accurately is crucial. Ensuring they maintain robust cyber insurance policies is equally important. By proactively taking these measures, firms can not only ensure compliance but also effectively mitigate potential risks.

Understanding the evolving world of IT compliance for financial services firms is an ongoing conversation, not a one-time decision. Learn more about the compliance obstacles facing the financial services sector. Download Coretelligent’s complimentary whitepaper: How Financial Services Firms Can Manage Compliance.

 

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What you need to know about cyber insurance requirements with image of shield and technology and coretelligent logo

What Is Cyber Insurance Compliance? What You Need to Know

The average cost of a data breach in 2022 in the U.S. reached a new all-time high of $9.44 million, according to IBM. With this continued rise in cybersecurity incidents, financial services firms are a popular target for cyberattacks.

However, obtaining cyber insurance can help mitigate these attacks’ financial burden. Now more than ever, financial services firms are strongly encouraged to get cyber insurance due to the intensifying threat landscape and increasingly complex requirements from regulatory bodies or authorities such as the SEC and FINRA.

Because of these developments, many businesses have turned to managed service providers (MSPs) for their expertise to manage cyber insurance compliance.

Cyber Insurance Compliance

What is Cyber Insurance Compliance?

Cyber insurance helps to mitigate or lessen the financial burdens from a data breach or other cybersecurity incident should your business fall victim. Still, as more and more companies file claims, the cost of cybersecurity insurance continues to rise. Premiums increased 79% in the second quarter of 2022 alone.

As the cost and frequency of cyberattacks increase, cyber insurance companies are forced to cover more payouts which causes a premium increase across the industry. Along with this premium increase, insurers also implement increasingly more stringent minimum security requirements for applicants for cyber insurance coverage.

Previously many of these requirements were simple checkbox practices you could complete once and forget; now, insurance companies are shifting to an active monitoring approach. This includes conducting periodic scans of your cybersecurity systems to ensure you maintain the required standards for coverage. If your external cyber footprint strays from secure standards, you expose yourself to a risk of adjusted premiums or a complete loss of coverage.

Benefits of Partnering with an MSP

Due to this active monitoring approach, many financial services firms are partnering with the experts at an MSP for guidance and maintenance of their internal and external cybersecurity environments that adhere to the insurance requirements.

Partnering with an MSP can provide additional benefits to firms, too.

  • Access to industry expertise and knowledge

As with the financial services industry overall, there is no one-size-fits-all for insurance coverage. Internal and external security posture and cybersecurity practices play a big role in deciding required insurance minimums so working directly with an MSP can help you become a better candidate for cyber insurance coverage at a lower premium.

MSPs help ensure you have the proper cybersecurity and data protections before applying to improve your chances of approval for coverage. In fact, in many cases, an MSP has established relationships with preferred cyber insurance providers that benefit their clients.

  • Compliance as a Service and Cyber Insurance

With compliance as a service (CaaS) products, a Governance, Risk, and Compliance (GRC) platform is included with your service. This platform allows organizations to track, manage, and report on compliance related to industry-specific laws and data security standards. This is integral should you experience a data breach or other cyber incident.

When filing your claim, proof of a business’s compliance is often required at the time of the incident, or you will be denied—utilizing compliance as a service product makes obtaining this proof much more straightforward. Access to a GRC and assistance filing a claim from your MSP through these services save you time when it matters most.

Streamlining the Requirements of Cyber Insurance

Gone are the days of simple checkbox requirements for obtaining cyber insurance. Companies must adhere to more stringent requirements in today’s market to obtain and maintain their policies. Working with an IT partner to gain cyber insurance coverage has many distinct advantages.

MSPs assist you during the application process and help secure lower premiums through vendor relationships. They ensure your company stays compliant with your policy and external regulations. If you face a data breach or attack, MSPs guide you in filling out claims forms. They also provide the necessary documentation to your provider when submitting your claim.

Next Steps

The cyber insurance market and models will continue to evolve. With compliance assurance and engineering excellence, the professionals at Coretelligent are helping financial services organizations find the path forward. A partnership with Coretelligent can help financial services firms establish themselves as insurance candidates, lower premiums, and mitigate overall risk.

Learn more about CoreComply, Coretelligent’s full compliance solution that streamlines and enables compliance, third-party risk management, DDQ, and cyber insurance audits.

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What is cyber hygiene and cyber hygiene best practices?

What is Cyber Hygiene & Why is it Important? (Best Practices)

Cyber HygieneWhat is Cyber Hygiene?

The consistent implementation of cybersecurity best practices to ensure the security and handling of your networks and critical data is what is known as cyber hygiene. Coretelligent will be sharing information and resources to help you fortify your cyber hygiene and keep your business safe from  threats.

7 Cyber Hygiene Best Practices

We have put together a list of cybersecurity tips as a quick introduction to persuade your team to assess your firm’s current security readiness from a cyber attack.

  1. Double (or triple) up on login protection.

    Enable multi-factor authentication (MFA) across your organization for all accounts and devices to ensure that only authorized users gain access to your secure data. CISA’s Multi-Factor Authentication (MFA) How-to-Guide is a good resource for more information.

  2. Shake up your password protocol.

    According to the NIST guidance, users should consider using the longest password or passphrase permissible. Encourage end-users to switch up passwords across applications, accounts, and websites. Using unique, strong passwords can make it more difficult for cybercriminals to gain access and protect your organization in the event of a breach.

    A password manager and online password generator can be employed to generate and for remembering different, complex passwords. Another solution is to employ SSO to control passwords centrally and avoid user password sprawl across various platforms, which can lead to poor password choices, reuse, and insecure safekeeping.

  3. If you connect, you must protect.

    Whether it’s a laptop, smartphone, or another networked device, the best defense against viruses and malware attacks is to perform updates on a regular basis to verify that the latest software updates get applied to your software, browser, and operating systems.

    A plan that includes the automatic security update is a critical layer of security and part of a multi-layered defense strategy.

  4. Don’t get hooked.

    Cybercriminals use phishing tactics, hoping to fool their victims. So, if you’re unsure who an email is from—even if the details appear accurate— or if the email looks phishy, do not respond, and do not click on any attachments or suspicious links in emails.

    Instead, report the phishing attempt to help your IT team and email provider block other suspicious fake emails before they arrive in your inbox. In addition, the use of random phishing simulations is a valuable exercise to help end-users spot phishing attempts.

  5. Beware of social engineering traps.

    Many people don’t realize that many of the posts seen on social media asking for seemingly random details are created by criminal networks. They use these posts to gather data that can be mined for potential passwords and other secure information.

    For example, posts like, “What car do you wish you still had?” or “Tag your childhood best friend” can be used to help criminals work out the answers to your security questions.

    Not only can these tactics impact personal data but are used to target employees in order to gain access to corporate networks. Read CISA’s Social Media Cybersecurity Tip Sheet for more information about good social media and cybersecurity practices.

  6. Don’t forget about mobile.

    Most connected Internet of Things devices are supported by mobile applications. Mobile devices are often filled with suspicious apps running in the background, or using default permissions users never realized they approved, which are gathering personal information and login credentials without the user being aware.

    A robust cybersecurity posture should include a plan for protecting data from employees using compromised mobile devices to access to corporate networks.

  7. Stay protected while connected.

    Using Virtual Private Network (VPN) for employees remotely connecting is the best way to protect networks. A VPN creates a secure connection that encrypts information so that it’s hidden as it travels. This connection makes it harder for attackers to see and access data.

    VPNs are essential when accessing sensitive data like personally identifiable information (like social security numbers) or protected health information, especially when using public wi-fi networks. In today’s hybrid workplace, VPNs are a must to protect against suspicious activity.

From a phishing attack to a ransomware attack, cyber threats are constantly evolving. If you are unsure whether your firm employs good cybersecurity hygiene best practices or not, then it may be time for a security check-up.

Remember, cybercriminals will use any security vulnerabilities they can find to gain access and steal data. You can start with these cybersecurity tips and move on to using our free Cybersecurity Checklist to review your security measures.

Download the Cybersecurity Checklist

 

Coretelligent is here to help with advice from our cybersecurity experts. Protect your business and learn more about our enhanced managed cybersecurity services designed specifically for small-to-mid-sized companies. Reduce your risk from security incidents – contact us today for help responding to your cybersecurity gaps.

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What is HIPAA compliance?

What is HIPAA Compliance? Laws, Rules, Regulations

what is HIPAA compliance

Healthcare businesses face mounting regulations these days. But ask any healthcare provider, “What is HIPAA?” and they will certainly tell you it’s the most important regulation of all. But what is HIPAA compliance?

Understanding HIPAA and how to adhere to it is vital not only to healthcare providers but to those who support them, including IT providers of cloud-based tools, storage media, and hardware.

 

What is HIPAA Compliance?

HIPAA, short for the U.S. Health Insurance Portability and Accountability Act of 1996, is a federal act that enforces specific laws and regulations to safeguard the privacy and security of patient data, also known as protected health information or PHI.

HIPAA compliance refers to the implementation of specific security, privacy, and operational measures required to protect sensitive patient health data. This includes an array of actions and oversight that must adhere to specific federal regulations, including secure storage, transaction, and disposal of patient data, safeguards against data breaches and unauthorized disclosure, and data encryption.

Who needs to understand HIPAA?

The meaning of HIPAA compliance must be understood by several market segments:

  • Healthcare Providers
    Healthcare providers must understand the meaning of HIPAA compliance and be equipped to properly manage PHI, including medical records, financial information, and personal identifying information (PII). Healthcare providers that violate HIPAA rules and work outside of HIPAA compliance are at risk of fines and penalties.
  • Patients
    Patients benefit from having a basic understanding of the meaning of HIPAA. Awareness of how healthcare providers are required to treat their information allows patients to be equipped to advocate for their rights and be alert for dubious practices.
  • Insurers
    In addition to doctors and healthcare facilities, health insurance providers must also adhere to HIPAA, since handling PHI is also part of their daily operations. Medicare and Medicaid providers, employer-sponsored health plans, and organizations managing private insurance sales must all be aware of HIPAA requirements.
  • Information technology (IT) providers
    Two major provisions of HIPAA have to do with information: the HIPAA Privacy Rule and the HIPAA Security Rule. In a nutshell, these rules govern how patient information should be handled and how it should be kept safe. IT providers must be aware of both rules since it will fall to them to create and maintain secure infrastructure for digital PHI.

  Related Content – Therapeutics Company Benefits from Compliant Infrastructure Case Study

How does IT impact compliance?

HIPAA and IT connect on two major points: information handling and information security. Here’s how:

  • HIPAA compliance requires dedicated personnel.
    Here, “dedicated” calls for a specific person in the organization to be directly responsible for putting policies in place for HIPAA compliance. An enterprise organization may hire a privacy officer specifically to oversee these requirements, while a small doctor’s office may appoint an office manager to manage requirements; each approach is valid and must consider the needs and capacity of the business.
  • HIPAA requires a basic strategy.
    One of the key points that dedicated personnel will be responsible for is HIPAA compliance strategy. That person will subsequently work with IT providers to establish the framework for security and compliance operations.
  • HIPAA demands basic security principles.
    IT providers must take special care to understand the HIPAA requirements for security and privacy of PHI. While security appliances and antivirus tools will be useful, this is just the beginning. Policies like Unique User Authentication and access control are critical. The IT provider working with the dedicated HIPAA officer will offer further recommendations accordingly.
  • Don’t forget disasters.
    One key component of HIPAA compliance planning is creating a disaster recovery plan. Healthcare providers must have such a plan in place that allows PHI to be continuously available, even during a disaster. Disaster recovery plans offer benefits beyond compliance, including cost savings and improved customer experience.
  • Test and assess.
    Once a disaster recovery plan is in place, testing and assessment will be required to ensure it delivers as promised. As security needs change, and new threats emerge, the disaster recovery plan will continue to evolve. Thus, staging new plans, and testing these routinely, is crucial to the ultimate success of HIPAA compliance.

Some Miscellaneous Points About HIPAA Compliance

  • Basic requirements
    HIPAA requires a standardized format for all stored data, whether it’s health, financial, or administrative. Each healthcare entity needs a unique identifier, though an ID number will work.
  • HIPAA Compliance Best Practices
    HIPAA contains a set of best practices that mandate HIPAA compliance as part of its Security Rule. Though these standards cover a lot of ground, sticking to them will ensure the clearest path to compliance.

Need HIPAA Compliance help?

There’s no way around it: HIPAA compliance is a massive undertaking, but Coretelligent can help you through the labyrinth of HIPAA requirements, rules, and regulations. Get in touch with us to learn how Coretelligent can help you establish security principles, address compliance issues, and generate disaster recovery plans and systems.

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Co-Managed IT Service Model

What are Co-Managed IT Services? Are They Right For You?

Outsourced and co-managed IT models have become the strategic go-to for SMBs who want to focus their efforts on business growth rather than the rigors of daily IT support.

How do you know if your organization should consider co-managed IT services and for what IT functions you should outsource?

co-managed ITThe growing importance, complexity, and scope of IT, as a whole, has driven many companies to favor co-managed IT services.

In a co-managed IT model, an organization’s internal IT team collaborates with their managed service providers to divide IT responsibilities based on skill gaps and time, among other considerations.

Companies benefit from this model by gaining access to experience and expertise it may not possess internally while maintaining visibility and alignment with business/technology objectives.

When to Consider Co-Managed IT?

When your business experiences accelerated growth, the technology workload can quickly increase to the point where you find the internal IT team overwhelmed, which quickly leads to drops in production across the business. With over 25% of business being conducted online in 2022, these slowdowns and drops in production can have serious consequences.

Strategic initiatives and alignment such as digital transformation initiatives, effective and timely project management, access to enterprise-class tools, and security become major concerns as the IT team falls further behind, struggling to keep up with the day-to-day leaving no time for strategic planning or adoption of newer technologies.

Co-management takes the burden off of your IT department so that they are able to focus on the tasks and projects they are highly skilled in.

IT Functions to Consider for Co-managed IT Services

What are some of the critical table stakes for co-managed IT services for growing companies?

Project Management

Smaller businesses may have one or two IT staff on hand who are great at what they do, but lack experience in project planning and management. When partnered with the right Managed Service Provider (MSP), your IT staff benefits from a lighter workload that allows them to focus on projects that enable business growth.

Outsourced IT project management gives your business access to experts who know how to plan and manage projects of all sizes.

Digital Transformation / IT Roadmapping

The creation of an IT strategy for a Mid-Market organization can be a huge challenge. Aligning agile short-term and long-term goals with the technologies needed to actualize them can be more than a small IT staff can handle.

Working together with your MSP for IT roadmapping provides access to a team of experts that will immediately boost the productivity of your IT staff and pass the benefits of increased efficiency to faster business growth.

Enterprise Tools

When you work with the right MSP, you gain access to enterprise-class tools that provide your business with the same level of insight and service that large companies can provide for themselves.

The best part is that you don’t have to make huge investments in developing a sophisticated IT team or software to do this. When you outsource, you gain immediate access to the same kinds of tools and services your business could not afford otherwise.

IT Security

One of the critical areas of business operations is the security of its IT infrastructure and digital assets. SMBs and Mid-Market organizations often lack the resources and skill set necessary for implementing and maintaining an effective security strategy.

Outsourcing your security needs to a reputable MSP/security services provider makes robust security much more than a pipe dream.

With the right security partner, your business gains access to state-of-the-art technology and security experts who know how to keep your IT infrastructure and digital assets safe.

Outsourcing is about much more than just handing off a bunch of work to another business. It’s also about forming mutually beneficial partnerships that help both businesses grow.

Learn What to Ask When Selecting an IT Partner

 

Most Common Co-Managed IT Service Models

Model #1: Outsource Helpdesk, Insource Escalation Resources

In this scenario, a business partners with an MSP to provide everyday tech support while keeping escalation in-house.

This allows your tech support experts to focus on resolving the toughest issues while your co-manage partner takes on the mundane helpdesk calls.

This is a particularly effective model for companies that are spread out across multiple locations and time zones.

One of the greatest advantages of co-managed helpdesk services is the standardization of service across all of your company’s locations.

Your business also gains the ability to reliably provide support services outside of normal business hours.

When you have a professional, co-managed helpdesk strategy in place, you eliminate the need for one or more IT personnel working the graveyard shift waiting for someone to call.

Model #2: Outsource Infrastructure Management, Insource Tier 1 Helpdesk

This option is a great fit for a business that:

  • Have over half of its employees at one location
  • A handful of remote workers or offices that connect into HQ resources
  • Remote work schedule that’s aligned with HQ time zone

In this model, your business outsources all of its IT infrastructure management while keeping first-line technical support in-house.

You may have an IT staff that lacks the time and advanced skills necessary to provide advanced infrastructure support or the resources to plan and manage projects.

Your business may also lack dedicated security resources to protect IT infrastructure and digital assets.

You may have a company culture where employees expect to be able to just walk down the hall to IT rather than calling over the phone.

Outsourced IT infrastructure management is ideal for an organization that needs expert IT skills and experience to manage and secure IT infrastructure.

This removes the burden of infrastructure management from your IT staff, freeing them up to provide first-rate, personalized help desk support to everyone throughout your organization.

Is Co-managed IT Support Right for You?

Co-managed IT support offers flexible solutions that meet your internal IT team where they are. Need a partner to focus on the day-to-day rigors of IT support? Or are you looking for a partner to focus on long-term planning for new technology initiatives and growth while your internal IT team focuses on the day-to-day? Maybe you’re just trying to fill a skills gap to complement your existing IT team. If any of these situations sound like your business, co-managed IT services could be right for you. If you’re a mid-market organization with a need for co-managed support or managed services, reach out to learn more about our solutions today!

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Man and woman share a tablet in the background. The image is overlaid with text that says Outsourced IT support and management pros, cons, costs.

Outsourced IT Support & Management – Pros, Cons, Costs

For a growing number of businesses are turning to outsourced IT support as the ideal solution. But, what is exactly does outsourced IT entail?
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Outsourced IT

A Look at Outsourced IT

It’s no secret that small businesses are lean and scrappy. As a result, many do not have an internal IT department—in fact, many startup companies initially don’t have a contracted person to turn for IT problems other than perhaps calling the hardware or software manufacturers.

However, you quickly realize just how important IT functions are to your business and hire a dedicated IT professional. Providing day-to-day support to users, maintaining and securing IT assets, handling telecommunication contracts, vendor/manufacturer relationships, and sourcing software and equipment can quickly overwhelm a one person team. And while trying to balance all that, there is little to no time left to focus on the business’ holistic IT strategy.

As a business, you can add additional personnel or choose outsourced IT support to address your growing IT needs. But a quick search online yields dozens of IT companies in your area, each describing their services with unfamiliar jargon.

So how do you know if a provider has the services you need? First, let’s look at the basic terms you might encounter when searching for an IT service provider.

Breaking Down the Managed Service Provider (MSP) Space

For people who don’t regularly navigate the waters of IT service providers, the language can be confusing.

Furthermore, there is often a lot of overlap in the definitions of distinct terms. For example, take a look at these general terms from Gartner:

Managed Service Provider (MSP) delivers network, application, system, and e-management services across a network to multiple enterprises using a “pay as you go” pricing model. A “pure play” MSP focuses on management services as its core offering.

IT Outsourcing (as a part of an outsourcing definition) is using external service providers to effectively deliver IT-enabled business process, application services, and infrastructure solutions for business outcomes.

Co-managed IT — A managed service that partners with you to provide only the IT services your business requires.

Clearing up the confusion around these common terms makes it a lot easier to find your way from the ocean of options into the harbor of the right IT solutions provider for you.

Now that you have a clearer understanding of these terms let’s take a look at outsourced IT support.

Outsourced IT Support: A Closer Look

When you outsource your IT support, you trust an MSP to manage your IT support.

The MSP takes over day-to-day IT operations and support and develops an IT roadmap for the future to meet your business and technology objectives.

Outsourced IT support is ideal for SMBs with no formal IT department who need IT systems to operate smoothly and reliably (not all SMBs rely on technology enough to invest in outsourced IT support).

What are the benefits of outsourced IT Support?

Outsourced IT provides multiple benefits to SMBs by managing all IT operations and alleviating the burden of day-to-day support concerns and long-term growth planning.

You gain access to IT professionals with skills and expertise similar to those employed by large corporations at a fraction of the cost.

They are able to jump right in, learn your IT environment, and begin providing the IT support you need.

A Proactive Approach to Help Desk Support

Another benefit of outsourced IT is that it should include a “managed” component.

Managed Services essentially amount to preventative IT maintenance.

What this means for your business is that small IT problems are nipped in the bud as soon as they bubble up, and before they have a chance to compound into much bigger, more costly ones—something that most small businesses cannot do on their own.

Outsourced IT Support Staff Come to Your Office When You Need Them

While remote IT support is often adequate, you may need a more personalized approach.

On-site IT support staff get to know your employees the same as if they worked there.

You can’t beat the quality of service delivered by on-site IT support professionals who know your employees by name.

Cost Becomes a Scalable Expense

Outsourced IT allows an organization the freedom to scale IT service up or down to meet business needs and available budget.

This flexibility makes outsourced IT support a great value for your company while allowing you to customize your service to your needs.

Related Content – 5 Ways Outsourced IT Can Boost Revenue & Productivity

Co-Managed IT Support: An Overview

When you opt for a co-managed solution, the IT provider partners with you to learn what your specific IT needs are.

A strategy is developed that seamlessly integrates the MSP’s IT professionals with your IT team to deliver the service you need holistically and efficiently.

For example, most companies choose to delegate first-level help desk to a managed service provider, freeing up internal IT resources for strategic tasks and initiatives.

Benefits of Co-managed IT Support

Co-managed IT has all of the benefits of outsourced IT support, plus added flexibility that allows your organization to divide up IT responsibilities.

With a co-managed IT partnership, you gain the value of IT services that is tailored to your specific needs and works in cooperation with your internal IT staff.

What’s Best for Your Organization—Outsourced IT Support or Co-managed?

At this point, you have a much clearer picture of the options available to you. But which one is best for your organization—outsourced or co-managed IT support?

How to Decide Which Option Is Best for You

To decide which solution is the right fit for your business, consider the size and scope of your IT needs. Typically, if you have 50 or fewer IT users in your organization, a fully outsourced IT solution may be best for you. Your managed service provider will cover both day-to-day IT support tasks as well as help design an IT roadmap to guide you through future growth and initiatives.

But what if you have more than 50 employees and at least one IT person?

Co-managing is almost always the right fit for businesses with 50 or more employees—especially if there’s at least one IT person. The co-managing partnership gives you the best of both worlds: delegate routine system monitoring, maintenance, and help desk while in-house IT focuses on strategic initiatives such as future upgrades/planning, new locations, and executive needs.

IT Solutions Tailored to Your Needs

Sometimes, small to mid-sized companies need specialized IT support but don’t want to outsource all of IT. When you need a custom IT support solution, talk with us. Whether a fully outsourced IT support model or a co-managed model aligns best with your needs, Coretelligent has the solution. So how can we help you?

 

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Man smiling at camera holding a laptop in conference room with 5 Digital Transformation Success Factors in white text

5 Digital Transformation Success Factors

Man smiling at camera holding a laptop in conference room happy because he has achieved the 5 Digital Transformation Success Factors

Digital transformation is intrinsically linked to technology, but the most vital digital transformation success factors are less about tech and more about planning, strategy, and support. Here we explore our five must-haves for a successful digital transformation and how you can achieve them in your organization.

Our top 5 digital transformation success factors are:

1. Be proactive
2. Avoid Band-Aid solutions
3. Focus on the need, not the tools
4. Prioritize user adoption
5. Don’t go it alone

1. Be proactive

“The key to cutting through the confusion is to see that digital transformation is not a single thing, but a multi-faceted journey with differing goals depending on your industry and digital maturity.” – Harvard Business Review

Digital transformation is much more than implementing technology. It’s a fundamental, holistic change to the way businesses run. Whether you have identified areas of improvement or wish to undertake digital transformation as part of organizational growth, you must consider your current and long-term goals. This is likely a no-brainer. But you also must take it a step further: you must look at the total impact and buy-in for digital transformation across your entire organization. This begins with a deep understanding of your existing infrastructure, architecture, processes, and teams. (In the case of mergers and acquisitions, this includes evaluating the landscape of all organizations to ensure unified integration.) Next, stakeholders and product owners must be in alignment regarding the viability of service implementation. This includes setting practical timelines and budgets with added consideration to how change requests may influence each. Also critical is establishing realistic expectations for existing teams, including if IT teams can support new infrastructure or if support solutions like MSP services may be required.

Successful digital transformation is never impulsive or performed in a departmental vacuum, but it can be challenging to know how to take the first step towards a clear and cohesive strategy. A practical starting point begins with creating an IT Plan and road map. Download our IT Planning e-book to get started.

Related Content →  What is digital transformation? Watch the video to learn more.

2. Avoid Band-Aid solutions

Being proactive is ideal, but sometimes things need to break to galvanize us into action. And seeking quick fixes, depending on the severity of the issue, can be tempting. But patching a leak will only delay the flood. What’s worse? Small ad hoc fixes can exacerbate the issue by adding even more layers of complexity to dig through, often leading to elevated costs and delays. Resist being led astray by reactive urgency. It is important to evaluate the root cause of issues to prevent recurrence and maintain long-term success.

Working with digital transformation solution experts can help you investigate pain points and identify areas of improvement. At Coretelligent, we help clients develop the strategy required to keep digital transformation projects on track and in line with business objectives. We also help clients with ongoing maintenance and support to ensure systems stay secure and running at peak performance.

3. Focus on the need, not the tools

It is human nature to be drawn to the new shiny thing. But just because a new solution, technology, or tool seems ubiquitous doesn’t mean it’s the right fit for you.

It’s important to consider your end goals and ability to implement before making costly investments in technology that may not deliver. Consider these questions: Does the technology really serve all your needs? Does it pair well with your existing technology stack? Does your existing platform possess the same yet untapped capabilities desired? Do you have a team with the expertise and bandwidth to implement and support new initiatives?

We recently worked with a professional services client that wanted to gain insights and visualizations into disparate data but didn’t have the expertise to implement the tool they purchased for the job. Coretelligent helped the client gain insights by using their preferred tool and leveraging capabilities within their existing platform.

4. Prioritize user adoption

Another key digital transformation success factor is user adoption. This is of equal importance for both backend users and customers alike for digital transformation to succeed.

Employees

Enthusiastic user adoption is a critical component of successful digital transformation, and it starts with your employees. It can be challenging for teams to transition to new working methods, especially if they have grown accustomed to specific technologies and are comfortable with the habits they have structured around them. Introducing digitalization and automation may also create anxiety regarding job retention or skill capability. To help ease this culture shock, it is vital to keep teams informed and educated through the digital transformation journey. This includes providing training and being open to feedback, which can aid in identifying bugs and opportunities for enhancements. Ultimately, how well your teams adapt and adopt will translate directly to the effectiveness and efficiency of your digital transformation initiative.

Customers

You must also consider the impact on your customers, particularly if digital transformation will modify product adoption. As an example, a utility client wanted to enhance user onboarding but did not have the digital infrastructure to support their initiatives. They identified a need for a more robust, self-service website and a paperless method for new user registration. However, many of their existing customers were elderly, still preferring to manage accounts by mail and paper check. While it was important for the utility to create a web interface that modernized their customer journey, they needed to be sensitive to existing customers who would not or could not adopt digital practices. Ensuring all customer journeys remained intact was critical to the digital transformation, even if it meant retaining some traditional methods. Keeping all parties informed about changes and educating them on how to use new features allowed both new and existing customers to feel supported and more likely to remain loyal to the brand.

5. Don’t go it alone

At the end of the day, the root of all digital transformation success comes down to one key factor: support. This includes ensuring you have firm commitment to your digital transformation initiative from within your organization—and from digital transformation experts.

Even the best internal IT teams may fail at digital transformation because it is simply not what they do. Adding on an entire shift in operating procedure can be overwhelming to existing teams. Digital transformation experts help organizations objectively assess needs and develop a plan that modernizes, streamlines, and enhances existing practices with architecture and technology complementary to existing infrastructure.

Related Content → Read how Coretelligent’s CoreDTS team helped a client realize their digital transformation goals → Leveraging Digital Transformation: A Multiphase Case Study.

Working with a digital transformation services provider like Coretelligent goes beyond technical implementation. A major component includes advising clients throughout the digital transformation journey for continued support of their organization. By maintaining open communication with stakeholders and product owners, the collaboration allows clients to receive a total picture of their business’s innerworkings, guarantees buy-in, and provides more opportunities for improvement and finetuning along the way. Plus, digital transformation experts will provide training and support to ensure your teams are equipped to maximize the potential of your solution.

 

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Lessons Learned from Data Breaches

Lessons from the Biggest Data Breaches in 2022

Data Breaches 2022 Humans tend to move on to the next big thing quickly, and with rapidly changing security and regulatory environments, CISOs are no different. We all face new challenges daily, but as we focus on the latest priority in front of us, we must also remember to look back and revisit previous events to ensure we’re practicing hard lessons learned.

Thousands of hacks and data breaches have been reported this year, with victims ranging from public and private companies to local governments and school districts. However, several breaches stand out to me, and now that the dust has settled on them, I think they warrant a deeper dive to uncover what lessons can be gleaned from them.

In this post, I’ll share the story of three data breaches and highlight the salient details you need to know to protect your organization in this age of cybercrime.

Three Significant Data Breaches in 2022

  1. The Okta Breach

Okta works with several partners to help manage its enterprise. Hackers targeted an employee of one of these partners, the Sitel Group, who had privileged access to provide customer service to Okta clients and data. That account was empowered to reset passwords and reset multifactor authentication.

The Sitel Group serves many more customers than Okta. To perform their jobs, support staff often need administrative privileges in their customer’s environment. The attack highlights the increased risk of outsourcing access to your organization’s internal environment.

  1. The Microsoft Breach

In March, Microsoft revealed that an employee account was compromised, which granted hackers “limited access” to Microsoft’s systems and allowed the theft of the company’s source code. Microsoft referenced the hackers’ use of “social engineering and identity-centric tactics” in a blog post detailing the breach. This attack illustrates why training employees about phishing and other social engineering tactics is so important.

  1. The Nvidia Breach

Nvidia, one of the world’s largest graphics processing unit (GPU) manufacturers, was breached in a cyberattack that resulted in the theft and release of over a terabyte of proprietary data and over 71,000 employee credentials. In a statement after the breach, an Nvidia spokesperson did not disclose how hackers were able to gain access, only referring to the attack as a “cybersecurity incident,” but a well-known hacking group quickly took credit for the attack.

What Do These Attacks Have in Common?

It is no coincidence that I am looking back at these three cyber events. The hacks were all claimed by a hacking group known as the Lapsus$ group. Lapsus$ claimed responsibility for the Okta breach, the Microsoft breach, and the breach of Nvidia, among other high-profile targets. The most surprising piece of information about that group is it’s allegedly run by a group of teenagers.

Lessons to be Learned from Teenagers?

The tactics used by the Lapsus$ group are wholly unsophisticated but have still proven time and time again to be effective. The good news is that because their tactics are easily thwarted, organizations have plenty of opportunities to avoid getting hacked by following best practices.

  • Lesson #1: Lapsus$ primarily relied on social engineering schemes to gain access to a target directly or seek access via an organization’s supply chain or service providers. The group claimed that its goal was financial and that it had no political agenda; however, its chaotic approach caused just as destruction in its pursuit of exploiting data.
  • Lesson #2: The Lapsus$ group’s attacks should be a reminder that even the most robust cyber defenses can be circumvented if attackers exploit weak links in the chain. These weak links can be found in both the technical and human domains, but the likeliest way for hackers to gain access is via end-users. As a result, organizations need to be vigilant in educating employees about cyber threats and how to identify and avoid them.
  • Lesson #3: Third-party risk management is also critical in protecting against the type of supply chain attack used against Okta. Companies need to vet their service providers and have security protocols in place to prevent attackers from exploiting these relationships to gain access to sensitive data.

Related Content →  What’s a Supply Chain Attack? Watch the video to learn more.

  • Lesson #4: Additionally, the Lapsus$ group’s attacks show that even small groups of relatively primitive attackers can cause much damage. This fact should be a reminder that organizations must be prepared for all threats, not just those from well-funded and well-developed cybercriminals.

It is important to remember that breaches can and will happen, whether perpetrated by Lapsus$ or other sources, and your company’s response can make all the difference in whether it will survive unscathed. The risk of lost revenue, fines and penalties, and reputational damage require that your company set and follow disaster response and recovery plans.

Reduce Your Risk from Data Breaches?

There are a variety of actions your firm can take to reduce your risk of being hacked, but here are a few key points to keep in mind:

  • Employ multifactor authentication.
  • Review all critical users’ access levels.
  • Perform due diligence for service providers and third-party vendors.
  • Conduct tabletop exercises to identify possible gaps in controls and training. For example, if an internal employee shared their credentials with an attacker, how could you tell?
  • Take care of your employees. Disgruntled employees are more susceptible to bribes.

Data Breaches 2022

Related Content →  Evaluate your security readiness with our  Cybersecurity Checklist.

Next Steps

Lapsus$’s attacks are a reminder that cyber defenses can be circumvented if attackers can exploit the weakest links in the chain. The best defense is to employ a multilayered cybersecurity solution that includes end-user training, comprehensive security policies and protocols, incident response planning, regular security audits, and more.

In today’s digital world, data is the new currency. And like any other type of currency, it needs to be protected from those who would exploit it. Unfortunately, the Lapsus$ group is just one example of the many cyber criminals out there looking to profit from the data of others.

Whether you work with an internal team or outsource your IT functions, employing robust cybersecurity solutions and regularly reviewing them against your risk profile is critical. Reach out to our security professionals for help evaluating your cybersecurity program to find gaps and areas that need improvement. Implementing security controls is not “set it and forget it” but must routinely be assessed to match the needs of your business and the external challenges of today’s cyber landscape.

JasonAbout Jason

Jason Martino is passionate about the intersection of security and compliance. He is responsible for Coretelligent’s internal cybersecurity programs, governance, risk, compliance activities, and educating staff and customers on an ever-evolving threat landscape.

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Multifactor Authentication

Multifactor Authentication: A Critical Piece of Your Cybersecurity Strategy

Multifactor authentication (MFA) is a security technology that requires multiple methods of authentication from distinct categories of credentials to verify a user’s identity. It is a crucial component of a robust multilayered cybersecurity posture to help mitigate the risk of a cyberattack.

It is also considered a best practice for organizations of all sizes and across all sectors to meet compliance standards—especially in highly-regulated sectors like financial services and life sciences.

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Multifactor AuthenticationMultifactor Authentication Explained

The multifactor authentication method should be familiar to all readers at this point. Companies from Apple and Google to Facebook and Amazon utilize (or require) multifactor authentication to reduce risk. Many more will follow in their footsteps as the threat landscape intensifies from cyberattacks and data breaches and as more regulatory agencies require the process.

When MFA is implemented, systems require users to present a combination of two or more qualifications to verify their identity for login. The first authentication consists of a password, which is all that’s required with single-factor authentication. The second verification can vary but often involves asking for a code sent via text or email to a device or account that has previously been verified.

MFA increases security because even if one credential becomes compromised, unauthorized users will not be able to meet the second authentication requirement and will not be able to access the device, network, or database. MFA prevents the unauthorized access of data—including personally identifiable information, intellectual property, and financial assets—by a third party who may have discovered a single password through illegal channels or via a phishing attack.

Multifactor authentication is an element of identity and access management, which consists of policies and practices designed to manage access to enterprise resources and keep systems and data secure. Additionally, Privileged Access Management (PAM) is a subset of IAM that allows for an even more granular distinction between users and access to more sensitive data.

Two-Factor vs. Multifactor vs. Adaptive

  • Two-Factor Authentication (2FA) is the simplest and most common form of multifactor authentication. With 2FA, users must supply two distinct proofs of identity for access. In nearly every case, two-factor authentication is a massive improvement over single-factor.
  • On the other hand, 2FA might not be flexible or robust enough for certain situations and specific industries. With MFA, more than two factors are required for authentication, enabling more variables and security. To elaborate, MFA can grant degrees of access across a broad spectrum of possibilities depending on various data points and multiple factors obtained from the login.
  • Adaptive Authentication is yet another certification tool that uses contextual information and business rules to determine which authentication factors to apply to a particular user, at a certain time, and in a specific situation. It combines user authentication with AI and is an effective tool for balancing security requirements and the user experience. Adaptive MFA also makes access decisions based on data, such as: consecutive login failures, geo-location, geo-velocity (or the physical distance between consecutive login attempts), device type, time of day, and 3rd party intelligence data.

MFA and Multilayered Cybersecurity

While MFA can help strengthen your security, it is still best employed as part of a multilayered cybersecurity program based on a defense-in-depth strategy. Defense-in-depth is a cybersecurity model that employs continuous multilayered security for real-time, holistic protection. The reality of today’s cyber threats is that no one cybersecurity practice is enough to protect on its own. Instead, overlapping layers of cybersecurity protections are recommended. A layered defense helps security organizations reduce vulnerabilities, contain threats, and mitigate risk.

It is also important to note that it is still critical to practice good cyber hygiene, even with MFA. Organizations should set password management policies and educate end-users about best practices. Such policies should include requirements for unique passwords and review the frequency of password rotation, among others.

Related Content →  Evaluate your cybersecurity posture with our  Cybersecurity Checklist.

What is Right for Your Organization?

The answer to this question depends on the specific needs of your business. However, in general, as the threats faced by organizations have become more sophisticated, it has become clear that single-factor authentication is no longer enough to protect data and systems.

Organizations must implement additional layers of security, and MFA is an essential part of that process. Therefore, when selecting an MFA solution, it is important to consider your firm’s needs and choose a solution that will be easy to use and manage by both your IT team and your end-users.

Reach out to our security experts for help in determining which is the right solution for your business and security needs. We can help you assess your risk exposure, determine any compliance requirements for your sector, and evaluate the ease of deployment and implementation necessary, along with other factors.

About Chris

As Chief Technology Officer at Coretelligent, Chris Messer is a transformational and strategic IT leader who establishes and leads Coretelligent’s technical vision and technological development. Click here to learn more about Chris.

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