SMEs forced to meet cybersecurity demands in order to win contracts

Contract signing

Supply chain threats are a major problem for enterprises and they are forcing smaller businesses to take security more seriously in order to win contracts.

A study by cyber security awareness platform CybSafe shows nearly 37 percent of organizations have been required to achieve a recognized cyber security standard by their enterprise customers before successfully securing contracts. This represents a nine percent increase over 2017.

In addition 40 percent of enterprises have now ensured that cyber security is part of their contract with SMEs -- a six percent increase on 2017, and 66 percent of enterprises have inquired about cyber security training, up from 54 percent in 2017.

CybSafe's research highlights an increasing scrutiny of cyber security in supply chain organizations by enterprise customers who, due to increases in regulations and high-profile data breaches, are more concerned than ever about protecting their data.

Oz Alashe, CEO and founder of CybSafe, says:

The study has revealed how enterprise customers are increasingly prioritizing cyber security when tendering for supply chain businesses. While lax cyber security precautions may have gone relatively unnoticed a few years ago, businesses are now losing out on lucrative deals with their biggest customers because of them. Due to tighter regulations and an abundance of high-profile breaches, organizations have had to re-review and reinforce their entire IT estate, including third party suppliers.

The study demonstrates that SMEs are actively taking measures to make themselves cyber secure to meet the terms of new contracts. This is because it is no longer enough for an enterprise organization to ensure that its own network is secure, any supplier must also demonstrate it's cyber secure too.

You can find out more on the CybSafe site.

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