Cybersecurity experts Heather Noggle and Dr. Arun DeSouza discussed Kiteworks' Data Security and Compliance Risk: 2025 Annual Survey Report, which introduces the industry's first quantitative risk scoring algorithm. The comprehensive study of 461 organizations reveals that 46% now operate in high- to critical-risk territory, with the median enterprise scoring 4.84 on a 10-point scale—dangerously close to the high-risk threshold of 5.0.

The experts analyzed a counterintuitive finding about third-party risk management: Organizations managing 1,001-5,000 external partners face the highest security risk (average score 5.19), surpassing enterprises with over 5,000 third-party relationships. These larger enterprises can monitor risks in real time, while mid-sized partner ecosystems struggle with enterprise-level complexity on mid-market budgets—resulting in 24% experiencing 7+ annual security incidents.

Industry-specific findings revealed surprising risk disparities. Energy topped the risk charts due to legacy IoT devices and 30-year-old technologies vulnerable to exploitation. Technology ranked second, which Noggle attributed to the "overconfidence factor" and rapid employee turnover. "Tech companies are losing people so fast, they want to implement things so fast. That to me is a perfect storm," DeSouza noted. Conversely, heavily regulated sectors like life sciences demonstrated lower risk scores due to compliance-driven security investments.

The report exposed a dangerous "confidence paradox" where organizations claiming to be "somewhat confident" in data governance showed 19% higher risk scores than those acknowledging uncertainty.

AI governance emerged as a critical vulnerability. While 64% of enterprises track AI-generated content (up from 28% in 2024), only 17% have deployed technical governance frameworks. The stakes are high—the IBM Cost of a Data Breach Report found that 97% of AI-related breaches lacked proper controls, with AI breaches costing $670,000 more than average. 

Poor data visibility creates cascading failures: Organizations unable to count their third parties showed 46% correlation with unknown breach frequency, while 31% of those with 5,000+ partners take over 90 days to detect breaches.

Heather Noggle: https://www.linkedin.com/in/heathernoggle/ 
Arun DeSouza: https://www.linkedin.com/in/arundesouza/ 


2025 Annual Survey Report: AI and Third-Party Security Danger Zone

Kitecast features interviews with security, IT, compliance, and risk management leaders and influencers, highlighting best practices, trends, and strategic analysis and insights. Kitecast is cohosted by Tim Freestone and Patrick Spencer who have more than four decades of combined experience in technology and cybersecurity senior leadership roles.