Trust is one of the most powerful currencies in business, but it’s hard to earn and even easier to lose. And one of the easiest ways to lose trust is through a data breach. Exposing confidential data can have massive implications on how your customers, and partners, trust your company and your brand. According to a survey by FireEye, “76 percent said they would move away from companies with a high record of data breaches while 72 percent said they will now share fewer personal details with companies”. And most customers don’t care if the data breach was through a third-party or not.
Relying on third parties to provide services and competitive benefits is pretty much a given today, but these benefits will be quickly overshadowed by a breach. Actively managing third-party risk can help you earn and protect the trust of your clients and community by showing them you are dedicated to the security of their data. But this requires more than a once a year third-party risk assessment. It requires ongoing visibility – and that can only be achieved if you have access to dynamic data.
Third-party risk management (TPRM) solutions should enable ongoing visibility into your ecosystem while also providing you with the tools to identify and prioritize your riskiest vendors – so you can protect your organization, customers and brand.
This means moving beyond the compliance and risk assessment checklist and employing a TPRM solution that takes a holistic approach to third-party risk management. A third-party risk management solution should help you:
5 Key Components of an Effective TPRM Program
1- Manage all the third-parties or vendors in your ecosystem through one platform. Chasing assessments, requesting updates and managing data is time consuming. Subscribing to risk assessments as-a-service is a viable way to augment your TPRM program while allowing your risk professionals to focus on more strategic tasks.
2- Protect your organization by being proactive, not reactive. Complete third-party due diligence before you sign contracts, not after. Running a cyber risk assessment now can save you time and money on reputation management later.
3- Know which third parties pose the most risk to your enterprise. Evaluate your third-party’s approach to security as it relates to the service you are looking to outsource – spot data risk sooner and mitigate third-party risks faster.
4- Understand what influences a vendors risk score: if something is listed as high risk, understanding why it’s ranked as high risk can be more important than the ranking itself. For example, is the vendor financial health in bad shape, is there a high rate of turnover at the management level, have they had a recent breach etc.. or all of the above. And, what if any, controls do they have in place to manage those factors? A 360 degree view of a third party or vendor is critical in truly knowing their level of risk.
5- Identify and prioritize gaps that will have the most yield. These insights can create mitigation strategies that are easier to manage and implement.
Identifying and mitigating risks in your third-party ecosystem is one of the easiest ways to protect the investments you’ve made in building trust and your brand. Learn more about the cyber risk exchange that industry leaders like Aetna, ADP and Blackstone rely on to help them manage their third-party ecosystems. Request a demo here.