With most organizations relying on outsourcing to handle at least some aspects of their day-to-day operations, third-party risk should be front of mind. This is especially true given the rising number of security breaches that are arising from third-party relationships.
A recent study shows that almost a third of third-party vendors would be considered a material risk if a breach occurred. Furthermore, another study revealed that 80% of surveyed organizations experienced a data breach originating from a third party in 2020.
Ultimately, your organization’s board of directors and senior management are responsible for managing third-party relationships. The identification and control of associated risks should be held to the same standard as activities that were handled from within the organization.
Despite the numerous risks that arise from third-party relationships over the vendor life cycle, many organizations still do not manage third-party risks as diligently as internal ones.
Failure to manage these risks can leave organizations exposed to regulatory action, financial action, litigation, reputational damage, and can impair the organization’s ability to gain new or service existing customers.
InfoTech Innovators can provide consulting assistance to help an organization to develop their Third Party Risk Management (TPRM) strategy and approach. It is also important that supplier agreements/contracts contain language to limit risk liability with third party vendors, insure an organization has the right to audit a vendor to insure security compliance , insure a vendor is performing their security due diligence internally to protect their environment ( and their client) and much more. Developing a sound foundation and framework to address TPRM is vital to insuring security and business goals are meet for an organization.
Reach out to us today to learn more about our Third Party Risk Management services and how we can help!
