Did you know that 59% of businesses experienced a third-party data breach?
Are you doing enough to protect yourself and your company?
Secure your business with a third-party risk management solution to mitigate risk.
Businesses rely on third-party vendors to deliver a range of products and services. However, despite the benefits, collaborating with third-party vendors increases the level of risk from data breaches, data privacy and security, regulatory requirements, and reputational risks. While it may seem like third-party risks are someone else’s problem, the reality is the opposite.
In today’s world of escalating data breaches and increased regulatory requirements, exposure can come from your own network or a contracted vendor. In fact, cybercriminals often seek out vulnerabilities in one company’s network to gain access to other companies, which is referred to as a supply chain attack.
Third-party risk management (TPRM) refers to the process of identifying, assessing, and mitigating the risks associated with working with third-party vendors. With the expanding network of partners and suppliers, TPRM is a necessary process to protect your organization from potential business interruption, financial loss, data breaches, and other security threats that could result from your third-party relationships.
TPRM programs enable businesses to maintain an accurate and up-to-date understanding of their third-party vendors, prioritize risk levels, allocate resources to mitigate significant risks, ensure compliance and provide the necessary reporting for compliance regulations.
Third-party vendors are integral to almost every business in today’s digital age, as companies outsource IT operations, customer service, supply chain functions, and more. However, the increasing number of data breaches originating from third-party vendors highlights the importance of effective vendor risk management.
Increasing regulatory requirements around third-party risk.
Requirement for cyber insurance coverage.
Growing reliance on third-party vendors for critical business functions for which interruption could be disastrous.
Being acquired by an investment company that requires TPRM.
Changes to the organization’s threat landscape, such as industry consolidation or new entrants to the market.
Corporate governance mandates TPRM.
Shifts in the risk appetite of the company’s stakeholders due to changing external or internal factors.
Expansion into new locations with different data privacy regulations.
The need to comply with industry-specific regulations and standards.
The International Red Cross was attacked via a third-party vendor data breach exposing the data of 515,000 “highly vulnerable people.”
Okta, an identity and access management company, disclosed an attack in March 2022 that exposed 366 of its corporate customers to a breach.
Similarly, Door Dash experienced a data breach exposing customer data that was traced to a third-party vendor.
LastPass and parent company GoTo revealed that they were caught up in a breach originating with a third-party vendor they utilized.
Companies face ever-evolving threats from cybercriminals, and third-party vendors can provide an easy entry point for attackers. By implementing a TPRM program, companies can identify and mitigate the risks posed by third-party vendors, including but not limited to cybersecurity, reputational, compliance, and financial risks.
By adopting a TPRM program companies can reduce their legal liabilities and improve their status as trusted custodians of sensitive information. With the high cost of data breaches and the potential damage to businesses’ reputations, TPRM is an essential priority for today’s business leaders.
When it comes to third-party risk management, there isn’t a one-size-fits-all approach. Instead, a third-party risk management program should be built based on a company’s individualized goals and risk profile.
A program should help organizations detect and mitigate risks associated with outsourcing to third-party vendors and service providers. The main elements of a TPRM program include screening potential partners, conducting due diligence, and monitoring relationships throughout their lifecycle. It also involves analyzing and minimizing potential business risks and ongoing assessment of the risk posed by third parties.
Organizations must develop a robust third-party program to protect themselves from potential risks. Organizations should develop a framework that includes policies and procedures for selecting, onboarding, monitoring, and terminating vendors to manage third-party risks effectively.
In addition, automation can help streamline the process of managing vendor relationships while collecting data from vendors, allowing you to identify any potential risks or areas of improvement in the TPRM program.
Additionally, leadership must be engaged and involved to ensure all third parties have been properly vetted before onboarding them.
By following these best practices, businesses can reduce their exposure to risks posed by third-party vendors and protect their operations from potential damage.
Coretelligent’s CoreComply offers an all-in-one solution for addressing TPRM. CoreComply automates TPRM activities, streamlining vendor onboarding and simplifying ongoing monitoring and reporting activities. In addition, it helps to provide a comprehensive view of vendor risk posture across all vendors in an organization’s supply chain, helping organizations make informed decisions.
If you’re looking for an effective way to manage your organization’s TPRM, contact Coretelligent today to learn more about how CoreComply can help your business streamline and simplify vendor risk management.
With integrated risk assessment tools, automated workflows, and customizable dashboards, CoreComply helps organizations easily identify, monitor, and manage vendor risk. CoreComply’s reporting capabilities provide clear insights into vendor risk, enabling organizations to make data-driven decisions and ensure regulatory compliance. Additionally, CoreComply’s real-time alerting system ensures organizations are immediately notified of any risks or changes in risk posture, allowing them to take swift corrective action if needed.