W hy should you care about data security?
As long as you use a Software-as-a-Service (SaaS) provider, such as a vendor management system (VMS) for workforce management and procurement, your program is safe, right? The truth is, not all VMS solutions are equally secure. When your organization stands to gain so much from implementing an extended workforce management solution, it would be foolish to risk all of these gains by accepting anything less than the strongest possible measures for managing the security of your data.
Some companies only think of convenience and ease of maintenance when they build their systems, but what about VMS Security & Compliance? The year 2015 was a record-breaking year for cyber-attacks, and experts around the world predict that the pressure on businesses to secure customers’ data will only increase.
A data breach can cripple your business, financially and in other ways. Maybe you think data breaches are something that happen to other companies, but could never happen to yours. If so, you may want to think again. Forrester research indicates, “According to the Cloud Security Alliance (CSA), data breaches are a top concern for SaaS, particularly in light of very public data breaches. Some security checks can be simplified by checking whether your SaaS partner adheres to the latest standards.”
In other words, taking simple, proactive steps to secure your business data can empower the success of your enterprise.
The Link Between Data Security & Your Bottom Line
So, how can your company avoid the headaches and pitfalls that are plaguing organizations across the globe? The first step is to understand the connection between data security and a profitable organization.
In this age of increased security, customers are understandably worried about whom they share their data with and what those entities do with that data. That means protecting your organization’s data is tantamount to protecting your reputation and cash. In other words, not only can a data breach affect your enterprise financially, it can easily destroy the trust you have worked so hard to build with your staff, customers, and suppliers. After all, as Warren Buffett famously said, “It takes 20 years to build a reputation and five minutes to ruin it.”
Financial implications aside, data security is important not only to build trust, but also for customer retention. The numbers tell the tale.
- 64 percent of consumers worldwide are unlikely to do business again with a company that experienced a breach where financial information was stolen
- 49 percent of consumers are unlikely to do business again with a company that experienced a breach where personal information was stolen
- Only 25 percent of consumers say they feel companies take the protection and security of customer data very seriously
So how can enterprise companies guard their precious data against the myriad of threats that are waiting to strike? The best way to close security loopholes is to be prepared. Arm yourself with knowledge and take every reasonable precaution you can take.
Do You Know the Answers?
VMS users who manage contingent workforce programs need to know how to protect their data. Again, not all VMS solutions are equally secure. That means the responsibility is on you to choose technology partners who take data security seriously.
If your organization is looking for a VMS partner, there are many important characteristics to consider. Perhaps most importantly, it is imperative to understand how a technology partner will ensure that your data is secure. Consider data security as an important differentiator when making a decision for your extended workforce management needs and ask these important questions when shopping around:
- Where is your data center located?
- Do you rely on cloud providers for your applications and systems?
- Do you have contingency plans in place, such as a disaster recovery site?
- Does your organization adhere to rigorous, annual SSAE 16 and ISAE 3402 audit (SOC 1/2/3) processes conducted by an independent third-party?
- Do you deploy single-tenant or multi-tenant architecture?
- Does your organization offer high-speed encrypted storage systems and is all of your data at rest encrypted?
- Are your technology partners recognized by Gartner as Magic Quadrant Leaders?
- How does your information security and privacy team stay on top of continuously evolving industry best practices?
- How does your organization defend against DDoS, web application attacks, and direct-to-origin attacks?
Don’t hesitate to ask how different providers measure up. Between the many things that can go wrong, the countless components for securing data, and the increase in data breaches, you owe it to yourself to do everything you can to protect your information.
To learn more about how the security of your data empowers the success of your program, download our free eBook today.