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Outsourcing Risks

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OUTSOURCING RISKS

As Information Technology professionals, we have accepted the fact that there is some sort of risk involved with data. This is why we deal with risk assessments and analysis, implementing risk plans, and maintaining them to reduce, avoid, mitigate and accept the risks as we deal with the data. Now, the company can address these issues to the best of their ability by checking network configurations routinely and upgrading their security as soon as an upgrade is available. They might even be able to reduce vulnerability even before it rears its ugly head, but what happens when a company decides to outsource some of their work to third party vendors such as business functions and private client information? Even though your company has a stellar track record for security for the business operations they control, they put themselves in a vulnerable position by outsourcing their work, because then you are only as secure as your outsourced business partners. In this paper we will discuss the outsourcing risk of the use of an external service provider for your data storage, the use of an enterprise service provider for processing information systems applications, the use of vendors to support your desktop computers, and the use of a vendor to provide network security.
Outsourcing Data Storage
A company that secures its valuable assets and protects their secret information within the four walls of the building allows themselves to be vulnerable as soon as they outsource their data to stored by a third party. The problem is generally a manageable one for small business with one or two vendors they outsource too, but as the company grows and the amount of vendors they deal with grows; the issue then becomes exponentially greater. If that vendor gets their network hacked and a hacker steals the information you gave the vendor to protect, then there is…...

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