Why Investors Are Paying More Attention to Internal Security Posture

Investors are paying attention to internal security posture to safeguard their money, whether it is a new startup or an established business. Other than product fit, number of customers, and growth metrics, cybersecurity is emerging as an important factor for investments. If an investor is associated with a company that is affected by a data breach and cyberattacks, it can taint their market reputation. 

This is why a company lacking in security measures can be more at risk of losing investor money. To understand in-depth details about why investors are paying more attention to internal security posture, read this blog.  

What is Security Posture and its Importance  

The security posture of a company is a term used to determine its readiness to handle and recover from attacks. It combines people, data, processes, and policies to identify and defend against harmful cyber attacks. A company with a robust security posture must have effective security measures and preparedness against cyber threats. This is needed while conducting security operations and adhering to company security policies.  

The following are some reasons why security posture is so important: 

• Safeguarding organisations against heavy financial burdens that arise due to data breaches. 

• Helps in maintaining business reputation and continuity, as frequent cyber-attacks can result in a lack of customer trust. 

• Timely awareness of cybersecurity vulnerabilities helps in the preparation of protection strategies. 

• A strong security posture ensures compliance with laws related to data safety violations. 

• Creative fields dealing with intellectual property benefit from a security posture that safeguards assets and preserves patents. 

Why Do Investors Focus on Internal Security Posture  

Internal security posture is a measure to understand how well guarded a company is against internally originated threats. This is why it is important to have a solid internal security posture to regularly assess staff loyalty and security competency. The following are some ways an internal security posture can help your business attract better investments:  

Internal data breaches are expensive 

Internal data leaks are harder to find and require expertise. This often causes expensive lawsuits, which can divert the company's resources, increasing unnecessary liabilities. 

Internal security postures can help in reducing these risks by offering privileged access. Businesses can use authorised credentials and hold permissions for sensitive data. This way, only trusted employees who are fit for the responsibility can access the information.  

It also allows you to check any potential security blind spots that may leak internal processes and data locations. For example, leading businesses use active directory auditing tools for strengthening their security. This helps in checking if your passwords are vulnerable to hackers and protects you against data breaches. 

For dealing with rising cybersecurity threats  

Internal threats are often more dangerous, as there is no need to pass multiple security barriers like external ones. What's more problematic is that these can remain undetected while significant damage is occurring without notice. When third-party systems or networks are compromised, it puts sensitive corporate data at risk.  

These threats can come in the form of insider trading, access loss, and information omissions. In many cases, these human threats are not intentional; however, the outcome can be fatal for companies. It can be due to negligence while opening spammy links, mishandling sensitive data, or deliberately sharing company information.  

To improve operational resilience 

Smooth operational resilience depends on maintaining a strong internal security posture with thorough planning and threat forecasting. Companies must perform regular tests, patching vulnerabilities in their most-used systems and fixing security loopholes. When a company has defined steps for identifying, containing, eradicating, and recovering from a security threat, its operations remain unaffected. 

Effective Ways to Improve Internal Security Posture  

The following are some effective ways that can help you improve your internal security posture: 

Regularly update security policies 

Using age-old threat detection policies cannot stay relevant for a long time. It is important to review these policies and strengthen them against changing threats. As cyber threats become more complex and sophisticated, changes in policies can ensure robust protection. This can include tools to detect user behavior, policy violations alerts in real time, and unauthorised access attempts. Multiple companies are now understanding the importance of this, which is impacting the cybersecurity market surge. 

Advanced security technology 

You can use modern tools to help monitor suspicious activity and block identified threats. These tools include IDS and EDRs that can offer real-time data through monitoring, response, and endpoint capabilities. Furthermore, AI and cloud networks also help to determine digital identity, offering a centralized and controlled resource access. 

Conducting security awareness training 

Update employees on the latest security threats and how to avoid them by offering regular training. You can invite the leading cybersecurity experts and ethical hackers to showcase practical scenarios. To further instill good security practices, businesses can do simulation training. These mock drills can increase security effectiveness during a real threat. 

Developing incident response plans 

Unlike outside threats, inside security breaches can go unnoticed without an emergency plan. This is why it is best to prepare an incident response plan for such situations. These protocols can prevent you from last-minute data leaks and credentials. Invest in smart systems to get alerts in advance. 

Audits and threat hunting  

Auditing can help you detect potential threats that can be difficult to find. Threat hunting helps in finding dormant vulnerabilities that may be affecting your security efforts. It can boost your security defences, strengthening your internal posture.  

Conclusion 

Ignoring insider security posture can be a mistake, leading to declining customer trust and leaking client data. To ensure your investors are willing to fund your business, this is a non-negotiable factor. By following the approach mentioned in this blog, you can strengthen the internal safety of your company. This can help you assess risk early on and achieve a secure operational environment. 

The article has been provided and sponsored by Tomasz Rezik.