Vendor risk management is one of the most critical factors in cybersecurity programs for businesses because today’s business environment is increasingly globalized and supplier-reliant. As a result, third parties are becoming a major source for breaches of regulated data. Tightened regulations mean that organizations are susceptible to be liable for the security controls and actions of their third-party vendors.
While risk management has mostly taken center stage, companies are able to better manage their legal risks and maintain a higher competitive advantage if they have a vendor management program in place.
Vendor risk management enables organizations to assess supply-chain risk and the potential impact on business operations in line with their organizational risk tolerance. The process of vendor risk management enables organizations to assess, monitor and manage the risks posed to them by their third-party vendors.
The process of vendor risk management includes the profiling, organizing and categorizing of suppliers based on the risk they pose to your organization. In this case, the cyber/information security risk is examined. This service is suitable for organizations with an existing supply chain in particular.
Customers of SubRosa who engage in this service will see improvements to both their internal enterprise risk program as well as supplier relations. Vendor risk management enables an organization to not only assess and manage risk but to align themselves with suppliers who match their organizational security practices and mission as well.
Read the white paper on the basics of effective vendor risk management.
SubRosa’s vendor risk management program is a fully scalable, proven framework that can be quickly implemented to enable you to begin assessing the risks posed to your organization. Our staff can be deployed anywhere in the world to begin representing your organization to your vendors and develop your risk picture.
Managing vendor risks can help ensure that sensitive data and systems are not compromised by malicious actors or inadequate security measures.
Cybersecurity breaches can lead to financial losses from stolen data, legal fees, and damage to a company's reputation.
Many industries are subject to regulations that require them to manage vendor risks, such as the Payment Card Industry Data Security Standard.
By regularly assessing the security practices of vendors, organizations can improve their overall cybersecurity posture.