Vendor related cyber risks are quickly becoming a major contributing factor to data breaches and cyberattacks worldwide. The way business is conducted today often requires little interaction but has massive networks. The coupling of these extensive networks and outsourcing potentials can leave organizations in the dark about their suppliers and partners’ cybersecurity capabilities. In this article, we will discuss some of the top cyber threats that your organization can mitigate using third-party security risk assessment.
Third Party Risk Management
In today’s world, many businesses are mobilizing their workforces. More and more services are being outsourced to external organizations, and it’s no different in healthcare. But that process also entails many risks, as even the most careful company often can’t account for every loophole in its vendors’ defenses. That’s why third party risk management in healthcare is absolutely vital for everyone.
In our increasingly global and interconnected world, businesses’ workforces and networks become more mobile and diverse every day. Whereas outsourcing various tasks related to management and security was seldom seen years ago, it is now the norm. That’s why, in today’s climate, third-party risk management solutions are a must for every business.
Years ago, businesses were relatively self-contained. The most important stakeholders were generally internal to a company, and strategic partners were fewer and more carefully chosen. Now, the globalized business environment we operate in is very different. Companies of all kinds and sizes make outsourcing a key component of their business model. That’s why a third-party risk assessment questionnaire is vital for any business.
Integrating cybersecurity best practices has become an essential aspect of the information and communication technology (ICT) supply chain. There is a growing cyber risk associated with dealing with vendors that are not adequately vetted or audited for their cybersecurity capabilities. The National Institute of Standard and Technology (NIST) have devised a series of frameworks for cybersecurity best practice.
Third-party vendors and suppliers play an important role in a business’s success. As part of the supply chain, whether it’s services or goods, companies rely on their third-party partners. This often results in a chain of connections between the business and supplier that hackers can potentially exploit. A cybersecurity breach can disrupt the supply chain, and also result in non-compliance fines and penalties.
Businesses rely on their third-party suppliers to deliver products or services on time, while also keeping costs down and improving profitability. However, as beneficial as third-party relationships are to the organization, it does come with risks. These include security breaches and data thefts that often result in non-compliance penalties and loss of consumer trust. Supply chains can also be interrupted.
The times of vertical management no longer serve as the best option for efficiency and cost-effectiveness. Companies rarely control every aspect of their supply chains and now use third parties to fill knowledge, time, or money gaps. But with outside assistance comes more risk. In relation to cybersecurity, third parties have become especially helpful for conducting security assessments, monitoring networks, expanding services offered. However, establishing a third-party partnership doesn’t happen overnight. Learn about the third-party risk management process and lifecycle here.
Around the world, many businesses like yours have benefited from adopting third-party vendors or service providers. Either as a small business or a giant corporation, third-party vendors give room for your organization to focus on its highest value activities while other aspects are outsourced.
Business always involves some level of risk. Any organization that avoids risk is being too conservative, hereby, limiting their potential for growth. Organizations have traditionally viewed risk as something that has to be avoided, and they spend significant resources to secure critical data and systems.