Third-Party Risks: How You Can Protect Your Business
Most organizations now rely on third-party partners. These partners may supply products, services, or even expertise to help you keep your business functioning and achieve your objectives. However, these connections can be challenged when a data breach or a cybersecurity event at the vendor’s end escalates into a serious concern for you.
That is why it is critical to understand how third-party risks can affect not only your business operations, finances, or brand, but also your company’s future. In this blog, we’ll go over the primary third-party risks that might leave you susceptible, as well as recommended practices for developing a robust third-party risk management approach.
How third parties compromise your security?
Your partners can occasionally expose you to unanticipated hazards. Knowing where these vulnerabilities originate allows you to better safeguard your business.
Here are some of the most prevalent third-party hazards that might threaten your business:
Third-party access: At times, you may be required to grant your third-party partner access to sensitive data or systems. If the partner suffers a data breach, your information may be exposed, turning your company into a victim.
Weak vendor security: When you collaborate with a third party, they automatically become part of your supply chain. If they do not have proper security measures, your risk rises, especially if they have indirect access to your vital information.
Hidden technology risks: A security weakness in third-party software or pre-installed malware in hardware might expose your company to external attacks. Attackers can use the compromised software or hardware to conduct an attack against your systems.
Data in external hands: Many organizations now entrust their data to third-party storage services. Even while this is a sound business move, keep in mind that there are certain dangers involved, such as a breach at the provider’s end that might endanger your data.
Best practices for managing third-party risks
Here are some best practices for mitigating third-party risks:
Vet your vendor: Before signing a contract, properly research your seller. Do not commit to them without first performing background checks, security assessments, track record reviews, and security policy evaluations. Also, request certificates and proof of conformity with industry standards.
Define expectations: You cannot take a gamble with your business. Create a contract that explicitly specifies your security expectations, obligations, and liabilities. Ensure that you include a condition that requires the vendor to maintain specific security standards at all times and that they report any or all security problems.
Be transparent: Your vendor is critical to the success of your company. So, it’s in your best interests to have open lines of communication with your vendors concerning security. Make it a normal practice to disseminate updates on emerging threats and vulnerabilities. Encourage your partner to be open and honest, and to disclose any security issues quickly.
Stay vigilant: You cannot simply examine your third-party provider once and believe they will always be secure. What if your provider is not keeping up with the ever-changing threat landscape? Continuously monitor their security posture through security assessments, vulnerability scans, and pen testing.
Brace for the worst: Things may go wrong, and they often do without notice. Maintain a thorough incident response plan including processes for dealing with security breaches involving third-party contractors. In your comprehensive strategy, explicitly outline roles, responsibilities, and communication procedures. Conduct frequent mock exercises to boost your preparation.
Build a resilient business
The way your consumers see you determines the destiny of your firm. Customer trust is difficult to gain and easily lost. Even if you have done everything possible to safeguard your clients, a single error by a third-party vendor can ruin your brand, and your customers will hold you accountable.
Do not allow a third-party breach harm your reputation. Take charge of your security posture.
Contact Atom Creek for a thorough evaluation of your third-party risk management plan. We can assist you in developing a strong defense to safeguard your business, data, and reputation.
Schedule a free consultation HERE!
