Cyber Vulnerability in the Healthcare Industry
The healthcare industry is an industry full of sensitive and private information from all walks of life. Healthcare businesses commonly require card payment information, patient health records, and personal identifying information. As these types of information are the most sought after among cyber criminals, the healthcare industry is a perfect target for them. When patients’ protected health information becomes exposed, the company who was in charge of protecting it is on the hook. As Cyber attacks increase, so do the prices of protection, cyber insurance.
The Recent Incidents
In a 2022 HIMSS cybersecurity survey it was stated that over 70% of hospitals encountered a threatening cybersecurity incident. The most popular form of hacking used was through ransomware attacks and phishing. Some of the incidents that occurred resulted in database breaches and financial losses as a result. On top of the financial threat cybersecurity breaches pose, when they happen they also cause a lack of trust in patients, possibly leading to another lack in revenue.
The Growing Metaverse
As time goes on and the push for our lives to be on a digital platform grows, the risks of cybersecurity attacks increase. When information is stored online, it is much more vulnerable than the old fashioned way of filing cabinets. The sophisticated systems and protocols health professionals follow to reduce the risk of cyber attacks are extremely helpful, but the inherent risk of the digital network still stands. Although technology has helped and transformed our world, industries like the healthcare industry must proceed with extreme caution when using them. There is no way to fully protect sensitive information, however cyber security insurance is a perfect way to cover yourself in case of a breach.
How do Healthcare Companies Make Sure the Supply Chain is Complying with its Contractual Requirements
In order for a company to avoid a cyber breach, it is important they handle contracts and vendors correctly.
- Choose a framework for compliance
HIPAA guidelines are specific to the type of health industry, and focuses mainly on protecting the most important health information the industry requires. HIPAA has frameworks to follow in each industry, making it easy to follow their guidelines. However, there are other options such as generic cybersecurity framework, and customized frameworks. When framework lists are narrower, they usually provide less security for the company. Although it is less protection, it makes compliance monitoring easier, as well as reporting easier for the vendors.
- Provide software license for vendorsÂ
Companies having a set framework for contractual enforcement is necessary. It is ideal to use a customizable framework compliance software that allows control statuses to be submitted by the vendor. Having that in place allows for companies to monitor their contractual compliance. False statuses that are submitted by the vendor will then be in breach of the contract, with repercussions following. A software license helps follow enforcement and influences vendors to be cautious of protecting the sensitive data.
- Monitor statuses
Companies can monitor statuses of the vendors, and then can make decisions based off of them. Deficient vendors may be dropped or put on notice, or for critical vendors could work to help the system. The data shared can be of different levels of importance, but all should be considered. Monitoring the data and acting in accordance can help the company’s supply chain, and allows for a specific plan.
It is essential that large and small companies that must handle sensitive information do so with caution. Some of the biggest data breaches happened due to the company allowing a non-compliant vendor into their data network, holding all of the private health information. Compliance technology helps to make smart decisions about who is allowed into their data network. Data breaches can happen to any company that has an online presence, and it is important to understand the risks within their supply chain. Protecting you and your company is essential to prolonged success.
