Due to text limitations, I'll provide an excerpt of the blog post here:
Enhancing cybersecurity in today's interconnected global economy has become a prioritized conversation, with third party risk monitoring at its core. Businesses engage third parties for numerous reasons ranging from strategic partnerships to increased operational efficiency. However, this interconnectedness introduces new vulnerabilities that can compromise the integrity, confidentiality, and availability of sensitive company information. Third party risk monitoring is thus essential to ensure cyber resilience, and this guide will delve into its critical aspects.
Each third party a business engages with extends its cyber risk landscape as these vendors can access, handle, or store sensitive data. Importantly, despite outsourcing, the responsibility for data protection remains with the sourcing company. Monitoring third-party risks helps to reduce cyber risks and ensure compliance with regulations.
Identifying and assessing risks involves a comprehensive understanding of the third party's operations and the interaction with your systems. This process involves risk identification, risk assessment, and risk prioritization. It applies to every stage of the third party lifecycle: selection, contract negotiation, ongoing monitoring, and termination.
Third party risk isn't a one-time event—it's a constant threat to an organization's cyber health. Continuous monitoring is crucial to identify any changes that might amplify risk, including changes in the third party's business model, financial health, compliance status, or data protection practices.
Thankfully, technology provides the tools to set up effective third party risk monitoring. Automated solutions are available, from comprehensive vendor risk management solutions to cybersecurity platforms that monitor and detect potential threats. Such tools can save time and resources, allowing companies to focus on strategic risk management activities.
Establishing a successful third party risk management program requires involvement from different stakeholders in the organization. It should be well-documented and understood by all parties involved, outlining policies, procedures and responsibilities around third party risk management. Furthermore, regular risk reviews are essential as they help identify and assess potential vulnerabilities to establish necessary control measures.
One undisputed method of risk management is regular auditing of third parties. Auditing should confirm that the third party is living up to their contracted responsibilities pertaining to data protection and privacy. Such audits should also keep tabs on the third party's security controls, data storage and handling practices, among others.
Beyond all the strategies, tools and procedures, the importance of team training and awareness cannot be overstated. Employees should be informed about potential risks when dealing with third parties and how these risks can impact the organization.
In conclusion, third party risk monitoring is a critical component in a company's cybersecurity strategy. It's a process that requires commitment, investment in technology, and continuous improvement. No organization is an island, and as the number of third parties grows so does an organization's cyber risk. Luckily, with proactive third party risk monitoring and sound risk management strategies, organizations can safeguard their valuable data while also enjoying the benefits of their third-party relationships.
SubRosa is a cybersecurity solutions provider specializing in cyber assessments and risk and compliance.
