In today's hyper-connected global landscape, organizations face an array of complex challenges. Among them is the increasing threat of cyber attacks, much like the recent incident involving Calpers, the United States' largest public pension plan. This episode underscores the critical importance of pre-emptive crisis management and swift, effective response.
When a zero-day vulnerability in their contracted third-party provider's MOVEit Transfer Application was exploited, Calpers found the personal data of nearly 770,000 members at risk. The response and actions taken by Calpers in the aftermath of the attack provide valuable lessons for organizations on the importance of pre-planned crisis management strategies and the steps required to protect their stakeholders and long-term interests.
Swift Action and Transparent Communication
The first step in crisis management after a cyber attack is immediate action and transparent communication. As soon as Calpers was notified of the breach, they took swift measures to protect their members' financial interests. The transparency of Calpers' communication was crucial to weathering the incident and maintaining their stakeholders' trust. They alerted impacted members and their families about the breach, providing critical details about what had happened and what it meant for them and how Calpers was responding.
Sustained Protection
In collaboration with their third-party provider, Calpers addressed the vulnerability and ensured additional security measures were put in place. The provider reported the matter to federal law enforcement, demonstrating accountability and following established protocols.
Preserving Trust Amid Challenges
A cyber attack can significantly damage an organization's reputation. However, the way such an incident is managed can either exacerbate or alleviate this damage. Calpers’ CEO acknowledged the severity of the breach and emphasized the organization's commitment to its members, a move that likely helped maintain stakeholder trust.
Lessons for Cyber Resilience
Calpers' experience with the MOVEit attack highlights the importance of having a comprehensive crisis management strategy in place. Here are the key lessons for organizations looking to bolster their cyber resilience:
Constant Vigilance: Regularly assess potential risks and ensure your vendors and third-party providers adhere to the highest security standards. Regular vendor audits can make sure they are meeting your security needs and identify ways to further alleviate risks.
Develop a Robust Crisis Management Plan: This should include a clear communication strategy, response procedures for various types of cyber attacks, and business continuity plans. Tabletop exercises are just one way to make sure plans work as intended and there aren't unforeseen blind spots.
Invest in Cyber Security: Strengthen defenses with robust cybersecurity measures and keep them updated. Also, educate employees on cybersecurity best practices. Many of the biggest cyber attacks exploit users as a weak point for access.
Communicate Openly and Promptly: In the event of a crisis, immediately notify the affected parties and maintain transparency. This approach can mitigate reputational damage and preserve trust.
As the pace of digital threats accelerates in our interconnected world, being prepared for a cyber attack isn't just beneficial - it's essential. After all, in the unpredictable landscape of the 21st century, the organizations that are best equipped to manage these threats will be those who expect the unexpected, prepare diligently, and remain steadfast in their commitment to stakeholder trust and security.