Managed Service Providers (MSPs) are indispensable in bolstering the cybersecurity framework for businesses, offering a broad spectrum of IT and security services. From cloud infrastructure management to comprehensive security measures, hiring an MSP allows a business to focus on core operations while providing network security and productivity. In today’s fast-evolving digital world, cyberthreats from internet criminals are increasing in frequency and sophistication. Regular internal audits, risk management, regulations, governance, and compliance with all relevant Data Security & Privacy Laws, become paramount, elevating the strategic importance of having a robust security posture to a “C-suite level” decision.
Truth is, no MSP can guarantee absolute security. MSPs will serve their clients best by making them aware of the shared responsibility in this dynamic scenario. This article decodes the reasons MSPs are not capable of guaranteeing complete security. It highlights the necessity for businesses to remain vigilant about compliance and governance. Clear communication and realistic expectations between MSPs and their clients are essential.
Understanding the Limitations of MSPs
Challenges Faced by MSPs in Providing Security
- Resource and Talent Constraints
Many MSPs face the challenges of limited resources and a lack of skilled personnel, which can hinder their ability to effectively manage and secure their client’s endpoints, networks, and cloud environments.
2. Training and Education Gaps
The ongoing technical training provided to MSP staff might not be sufficient to keep pace with the rapidly evolving cyber threat landscape. This inadequacy can prevent staff from effectively recognizing and responding to new threats, possibly compromising client security.
3. Standardization Issues
Implementing standardized security best practices across all clients is particularly challenging for MSPs. Each client is at its own security maturity level. This requires more customized security measures instead of a standardization MSP approach across the board.
4. Technological and Operational Limitations
Any Vulnerabilities in the MSP’s system compound existing vulnerabilities in a client’s system.
Increased Risk of Security Vulnerability: A business looking to increase cost-efficiencies by outsourcing to MSPs might also increase risk exposures. Because MSPs access multiple networks and multiple clients and their data sets, the potential cyber-attack surface increases, possibly increasing a specific client’s level of vulnerability.
Adherence to Zero Trust Principles: To mitigate risks, it is crucial for a business to apply Zero Trust security principles to their networks. This includes implementing the Principle of Least Privilege, which ensures that MSPs or subcontractors are granted only the access rights necessary to perform their duties.
Regular Re-evaluation of Access Requirements: Businesses must continuously reassess the access levels and privileges required by their MSPs. This re-evaluation should occur before contract awards to confirm that the MSP can meet service requirements under defined security protocols.
“Today, Your Small Business Is IN DANGER, and You Won’t See the Attack. But We Will.”
Andrew Crawford
CEO of Compliance Specialists
5. Impact of Cybersecurity Threats on MSPs
Prevalence of Cyber Attacks: MSPs are significant targets for cyber threats such as ransomware and phishing attacks. A white paper by N-Able in 2022 said, “Almost all MSPs have suffered a successful cyberattack in the past 18 months, and 90% have seen an increase in attacks since the pandemic started.”
Financial and Reputational Risks: The risks of financial and reputational damage from a single security incident are considerable for an MSP. Utilizing high-quality, industry-standard protection for each client and adopting internal best practices for the MSP itself are critical steps to mitigate these risks.
Legal and Insurance Consultations: To further protect against potential threats, MSPs should engage with IT services-focused attorneys and cyber-insurance professionals. These experts provide guidance that:
- prevents incidents from worsening,
- limits financial exposure, and
- expands recovery resources.
6. The Risks of Overpromising in Contracts and Marketing
Unrealistic Security Promises: MSPs who claim they are 100% secure are making an impossible claim. Cybersecurity is more of a journey than a destination, indicating that continuous improvement is required and one-time solutions are unachievable. Overpromising is misrepresentation that leads to significant discrepancies between client expectations and service reality, potentially damaging trust and client satisfaction, and it raises legal issues around business fraud and negligence.
Contractual Clauses and Liabilities
- Limitations of Liability: Contracts often include clauses stating that the MSP will not be responsible for indirect or consequential damages, such as lost profits or business interruption. This can leave clients unexpectedly vulnerable and financially exposed in the event of a cyber incident.
- Indemnity Provisions: It’s crucial for contracts to clearly define the types of claims each party is responsible for. This includes who will defend and pay damages or settlements, ensuring both parties understand their legal obligations and coverage.
- Moving from promise-based to evidence-based security helps shift ownership from third parties to security teams, who should be able to specify their coverage for particular threats. This approach is required because each business environment is unique and security solutions must be tailored to specific needs.
- Emphasizing measurable outcomes, security teams should benchmark their coverage against frameworks like MITRE ATT&CK® to provide clear, quantifiable metrics on their effectiveness.
Incorporating these insights into MSP contracts and marketing strategies helps set more realistic expectations and fosters a more transparent and trustful client-MSP relationship.
Balancing Marketing Claims with Reality
Balancing Marketing Claims with Reality involves a careful consideration of the frameworks and standards MSPs choose to follow. Here’s how this plays out in practical terms:
- Frameworks: Every MSP must align with established cybersecurity frameworks such as the NIST Cybersecurity Framework, CIS Controls, and ISO 27000 series. These frameworks guide MSPs in enhancing their security posture and managing risks more proactively.
- Standards: Compliance with standards like NIST 800-171 and PCI DSS is also a must for every MSP. These standards specify the requirements for protecting and securing sensitive information, which helps in building client trust and confidence.
2. Challenges and Benefits:
- Client-Specific Needs: Each client’s unique requirements make it challenging for MSPs to choose and implement a one-size-fits-all cybersecurity framework. It is essential for MSPs to tailor services to individual client needs while maintaining high standards of security.
- Resource Allocation: Evaluating which framework fits best with the available resources is a significant challenge for MSPs. Optimal resource allocation ensures that the chosen cybersecurity framework is effectively implemented.
- Enhanced Trust: By following these frameworks, MSPs demonstrate due diligence and a commitment to security, which can significantly enhance client trust and confidence, but cannot guarantee absolute security.
3. Impact on Cyber Liability Insurance:
- Documentation and Processes: MSPs must maintain thorough documentation and established processes following specific frameworks. Truth, and transparency, and proof are all three required in underwriting questionnaires, and they determine the success of insurance claims literally influencing whether claims are paid or DENIED! Your business, or your MSP’s business might pay for cyber insurance, however, do not make misrepresentations on the underwriting questionnaire (for example answering “Yes” to the following question when the answer is actually “I don’t know”: Are your hardware, software and documentation systems 100% In Compliance with all appropriate Data Security & Privacy Laws relevant to your business operation?”). When an incident occurs and a claim is filed, you might find your business held responsible for the misrepresentation. That might also mean you must submit to a mandatory government audit and very possibly pay legislatively mandated fines for criminal NON-compliance. IMAGINE!!?
- Demonstrating Due Care: Insurance companies look for evidence that MSPs have taken necessary steps to mitigate risks. Adherence to a cybersecurity framework shows that an MSP is committed to managing and reducing risks, which is crucial for obtaining favorable terms from insurers.
In the future, MSPs can make more grounded and realistic marketing claims by clearly listing and explaining the importance of the frameworks and standards to which they consistently adhere. This approach results in MSPs creating more realistic expectations, and its begins to lay a foundation of trust on which clients want to, and need to, depend.
Educating Clients on Shared Responsibility
Educating clients on shared responsibility in cybersecurity is crucial for fostering a secure digital environment. Here are effective strategies MSPs can implement to enhance client understanding and engagement:
Interactive Learning Opportunities
- Live Webinars: Hosting live webinars allows for real-time interaction and immediate clarification that helps makes complex security concepts more understandable.
- Gamification: Incorporating games like emergency simulations or rewards for identifying malicious emails can significantly boost engagement and retention of security awareness training.
Resource Availability:
- Dedicated Web Pages: Creating a specific section on the MSP’s website dedicated to Data Security & Privacy Law compliance best practices provides a reliable resource clients can refer to anytime.
- Educational Content During Onboarding: Integrating educational videos or blog posts about Data Security & Privacy in the user onboarding process ensures that clients start their journey with greater security awareness.
Communication Strategies:
- Simple and Clear Messaging: Using straightforward language helps ensure that all clients, regardless of their technical background, can understand and apply data security & privacy best practices.
- Social Media and Email Campaigns: Regular posts and emails about data security & privacy best practices reach a wide audience and facilitate ongoing education and reminders about security measures.
By implementing these strategies, MSPs can help clients understand their role in maintaining data security & privacy, ultimately leading to a safer cybersecurity environment for both parties.
Best Practices for Crafting MSP Agreements
Crafting effective MSP agreements is pivotal for ensuring clarity and mutual understanding between service providers and clients. Here are some best practices to consider when forming these agreements:
Key Elements in MSP Agreements
Clear Scope of Work (SOW):
- Define precisely what services are included and excluded in the agreement to prevent any misunderstandings.
- Include specific details about service level agreements (SLAs), data security practices, and intellectual property ownership.
Security and Compliance:
- MSPs must prioritize high-level security measures to protect client data, including cyber and physical security protocols.
- Regular updates and adherence to standardized frameworks like the Information Technology Infrastructure Library (now owned by PeopleCert) should be included in the service agreement to require the MSP to maintain robust IT service management (ITSM) capabilities.
Contract Flexibility and Terms:
- Offer different term options such as monthly, 1-year, and 3-year agreements, each offering appropriate pricing levels and available discounts.
- Clearly outline cancellation clauses and price protections to safeguard both parties.
Operational Best Practices
Active and Secure Onboarding and Offboarding:
- Secure handling of sensitive information during client onboarding and offboarding is required for maintaining trust and compliance.
- Thorough disabling of accounts no longer in use and systematic enforcement of Multi-Factor Authentication (MFA) on MSP accounts accessing client environments are both required. They strengthen prevention of business system breaches and lower the risk of a successful Internet Criminals Data Security Attack.
Dynamic Service Management:
- Regularly review and update the Service Level Agreement (SLA) to reflect any changes in service requirements or technological advancements.
- Discuss future IT needs with clients to ensure the MSP can support evolving requirements.
By adhering to these Operational Best Practices, MSPs can foster a trustworthy relationship with clients, ensure both parties are clear on their roles and responsibilities, and lead to a more secure and efficient service partnership.
Conclusion
Throughout this discussion, we’ve carefully explored why Managed Service Providers (MSPs), although they provide valuable services cannot guarantee complete cybersecurity. Our approach has highlighted that cybersecurity is not a one-size-fits-all solution but rather a continuous process necessitating cooperation between businesses and their MSPs. By understanding the specific responsibilities they share with their MSPs, businesses more effectively navigate the complexities of the digital landscape and reinforce their defenses against the ever-evolving threat of cyber-attacks.
These considerations make it evident that anticipating, preparing, and partnering are the cornerstones of effective cybersecurity strategy. Businesses are encouraged to engage proactively with their MSPs, setting clear, realistic expectations about how to continually adapt and protect the business against evolving threats. MSPs who commit to increasing their vigilance and safeguarding client’s data security & privacy in compliance with all relevant Data Security & Privacy Laws, are better prepared to fortify a secure digital environment for their clients. However, MSPs cannot guarantee complete security.
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References
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