Addressing Third-Party Risk Needs New Approaches

From supply chain management to resourcing needs, businesses rely on outsourcing and cloud service providers more than ever. However, IT and security concerns have dramatically increased, demanding business leaders to embrace new approaches to managing third-party risk. Today, data security risks emerging from third parties are a big concern for organizations. In this article at DigitalCreed, Brian Pereira explains how businesses must keep the risk quotient in check and mitigate cyber threats.

Ways to Address Third-Party Risk

“Independent surveys of C-suite executives indicated that most of the business decision-makers are aware of the risk landscape and close to half of those surveyed also expressed concern over cloud data security,” explains Pereira. To implement a continuous monitoring program, IT leaders must have a clear objective, and verifiable information about their vendors’ security posture on an ongoing basis.

Vendor Risk Management Approaches

Identify Risks: As a business leader, understand what data is at risk. Remember, there will always be some inherent risk. But, focus on the most sensitive and vital data to learn what you must prioritize. Always prioritize customers’ financial information on your highest-value assets list.Assess the Consequences: Analyze the vendors’ role in your organization and the likelihood they may be compromised. If the role is critical and the risk is high, you must assess the vendors often. Consider removing the vendors that fail to meet your due diligence process.Implement Mitigation Strategies: To avoid any blockages and unforeseeable events, you must implement mitigation strategies. Risk management measures provide a broader view of risks and performance across the extended enterprise.Automate Vendor Risk Management: Conduct in-depth research and choose software that automates vendor risk management and includes features to capture real-time risk management metrics. Ensure the tool also reduces the need for error-prone human interventions.

Managing third-party risk can become exceedingly complex as your vendor ecosystem expands. Therefore, establish continuous monitoring and assessment processes to make sure vendors comply with best practices and regulations. To read the original article, click on https://www.digitalcreed.in/how-businesses-can-mitigate-third-party-risk-and-cyber-threats/.

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