Why Are Companies Forming Cybersecurity Alliances?

Even as government entities are taking a harder stance against rising cybercrime, private organizations are largely still on their own when it comes to preventing and recovering from costly cyber attacks.

These digital threats aren’t a small concern: a single attack could cost your business millions of dollars in lost productivity, regulatory fines, and even lawsuits. There are more threats today than ever before, and businesses need an extra layer of protection to stay one step ahead of malicious attackers.

One recent trend in the ongoing battle against cybercrime has been cybersecurity alliances.

Instead of fending for themselves, businesses are joining forces to defend themselves against cybercrime cartels. Let’s look at what cybersecurity alliances are and why they’re beneficial to businesses.

What Is a Cybersecurity Alliance?

A cybersecurity alliance is a voluntary pact among businesses (usually in the same industry) to share best practices, research, and other information to combat cybersecurity concerns.

Our laws struggle to keep up with cyber threats, so industries will often create their own cybersecurity alliances to fill regulatory gaps. By banding together, companies can further their own interests while collaborating with other businesses. Every alliance is different, but they typically:

• Share technical data

• Create shared initiatives for solving vulnerabilities 

• Lobby for legislative support

• Create joint best practices to defend against the latest cyber threats

• Share proven solutions

• Encourage the adoption of security technologies

Cybersecurity alliances are typically small groups made up of several companies. However, big tech names like Microsoft, Siemens, and Cisco have created alliances of their own. Businesses can follow the guidelines of larger cybersecurity alliances like the Cyber Threat Alliance or the Global Cyber Alliance—but they’re also free to form alliances of their own.

Why companies are forming Cybersecurity Alliances

Cyber attacks are at an all-time high and increasing at an alarming rate: attacks rose by 38% from 2021 to 2022.

Not only are attackers getting bolder, but companies are increasingly digitizing their systems. Because everything is online, it’s more accessible—to both authorized and unauthorized parties.

Organizations have to take more steps than ever before to stay secure and compliant. But without resources, it’s hard to know which threats you should care about the most in your industry. That’s where cybersecurity alliances come into play. Businesses are forming cybersecurity alliances for these twelve reasons.

1. Cybersecurity awareness

Businesses join alliances so they can be more aware of cyber threats in their industry. Since cyber-attacks are becoming more sophisticated, businesses are having a harder time catching them.

While an alliance can’t prevent all cyber attacks, pooling resources can make it easier to install the right systems to fend off attacks—and it all starts with awareness.

2. Regulatory compliance

Cybersecurity alliances can also help companies comply with regulatory requirements. For example, some industries may be required to meet certain cybersecurity standards or share information about cyber threats with each other. By forming an alliance, companies can work together to meet these requirements more effectively.

3. Collective defense

Companies may also form cybersecurity alliances to engage in collective defense, where they share resources and collaborate to defend against attacks. This can be particularly useful for smaller companies that may need more resources to defend themselves.

4. Industry best practices

If you have a small IT department and want to know what practices are standard for your industry, you should join a cybersecurity alliance. Alliances share information on threat mitigation so you can stay a step ahead of attackers.

5. Enhanced information sharing

One of the key reasons companies form cybersecurity alliances is to share information and best practices on how to better protect themselves against cyber threats. By collaborating with other companies, they can gain insights into new threats and strategies for mitigating them.

6. Reduced security incidents

By following a cybersecurity alliance’s best practices, you can stop attacks before they even happen. In this way, belonging to a cybersecurity alliance can help your organization stay more secure.

7. Emerging technologies

Do you want to take advantage of emerging technologies like IoT, AI, and 5G? New technologies come with security concerns, but joining a cybersecurity alliance can teach you how to securely embrace these technologies for your industry’s unique use case securely.

8. Maximize resources

Small and medium-sized businesses don’t have as many resources, so putting their heads together can help all members save time and money.

9. Competitive advantage

Organizations often compete on customer experience. After all, if your customers experience a data breach or cybersecurity attack, they’re likely to leave you for the competition.

Following the security frameworks provided by a cybersecurity alliance can help you protect your customers. It’s not only the right thing to do, but in an age where security breaches run rampant, belonging to an alliance can give you a leg up on the competition.

10. Improved reputation

Being part of a cybersecurity alliance can also enhance a company’s reputation as a responsible and proactive organization that takes cybersecurity seriously. This can be particularly important for companies that handle sensitive customer information or operate in industries that are particularly vulnerable to cyber threats, such as finance or healthcare.

11. Cybersecurity legislation

Businesses will also join cybersecurity alliances to shape laws and policies. Cybersecurity alliances lobby the government for support in combatting cybercrime. The government is more likely to listen when a large group speaks up, so cybersecurity alliances can shape the future of an industry’s security practices.

12. Cost efficiency

Lastly, by sharing resources and knowledge, companies can also reduce the cost of cybersecurity. For example, instead of each company hiring its own security experts, they can pool their resources and hire a team of experts to work for the alliance.