Report: The modern-day workforce heightens employers' security risks

Dive Brief:

Almost 90% of security executives cited contractors and freelancers as most likely to cause security incidents in their organizations, according to a new report titled Security Executives on the Future of Insider Threat Management from Endera.
Respondents identified their top risks as theft or loss of devices (86%), fraud (80%) and cybersecurity threats (74%). Almost two-thirds of respondents reported that third-party vendors and supply-chain operators were responsible for workforce-related incidents. And among those business affiliates, 71% meet face-to-face with customers.
The report also showed that companies experienced at least three workforce-related incidents a week, on average, for a total of 156 incidents per year. Slightly more than half of respondents said they struggle to limit the number of incidents, and 44% were unaware of any potential workforce problems before an incident occurred. Many respondents said their organizations conducts background checks before hiring from the workforce (75%), but only 48% reported that these checks are done periodically.

Dive Insight:

The Endera survey results suggested that insider risks might be prevented if the potential for incidents were flagged before they occurred. But HR must know who they have hired to track the possible risks workers present. "Hands down, people are a company's most valuable asset. But, as the definition of the 'workforce' expands with the rise of the gig economy and use of third party vendors, workforce risk and insider threats are equally becoming a global issue," Endera CEO Raj Ananthanpillai said in a statement. A 2018 Deloitte survey found that nearly 53% of employers have little oversight of third-party outsourced relationships. The survey also showed more than half of respondents lack sufficient knowledge or visibility of third-party subcontractors. Just 2% said they regularly monitor subcontractors.

Ananthanpillai added that the survey uncovered organizations' struggles with lowering the number of workforce-related incidents and their impact on retention, brand reputation and revenue. Employers might be able to prevent safety and security risks by conducting ongoing background checks. Although the survey found that 84% of respondents said they could improve the way they use background checks to better prevent risk. Organizations that decide to conduct background checks must be sure to comply with the Federal Credit Reporting Act.