Security risks come in all shapes and sizes and affect all manner of organizations. For small businesses, like a local computer repair shop, security is important, but requires only a small-scale operation. In contrast, large corporations, turn to third-party contracts to better delegate resources and improve efficiency. However, implementing and maintaining security measures for external companies is challenging. Managing them takes significant time and human resources, as well as organization.
Why use our Third-Party management framework
Third-party breaches result in the highest damages. In other words, when data leaves an organization (due to a breach) companies face steeper obstacles to recovery. Targeted attacks, compromised infrastructure, and cloud computing are three top vulnerabilities for third parties. Subsequently, the organizations hiring such third parties are also at risk.
Each new vendor, contractor, or other relationship expands the potential for a security breach. However, due to the interconnectedness of technology and society, it is simply not feasible to consider forgoing third-party contracts on the basis of security concerns alone. To mitigate the risk, proper vetting and management of third parties is key.
Risks that we assess and evaluate within your third party engagements include;
Reputational Risk – We assess and recommend measures to make sure third parties possess good customer service and show a dedication to protecting customer confidentiality. We make sure your organization seeks third parties that politely respond to customers, make informed recommendations, and follow the specific industry guidelines when it comes to consumer privacy. If these requirements are not met, you face the possibility of negative publicity and reputation risk at the hands of a third party.
Strategic Risk – here we focus making sure there is an alignment between your organization’s business goals with third-party involvement. Are third-party contracts assisting in the strategic goals of your organization
Operational Risk – Integrating third parties into your organization’s systems increases operational complexity. If the internal processes of the third party are not secure, the operations of integrated systems become more vulnerable. Our approach takes into consideration the security implication on the operations involving the third parties.
Transactional Risk – refers to vulnerabilities during product delivery. Are third parties able to deliver as expected? We assess and evaluate to make sure there is contingency plans in place in the event a third party not delivering.
Credit Risk – It is important to verify the third party is on firm financial ground. The overall consideration is whether the third party is able/unable to fulfill financial obligations or contractual agreements.
Compliance Risk – Third parties must abide by the laws, regulations, and ethical considerations of your organization and the environment they operate. While hiring a third party, we evaluate options to include a “right to audit” in the contract to ensure regulatory compliance to the proper laws and regulations.
Other Risk – This simply refers to the unique risks that arise due to the differences of each organization and third party. Drafting a list of potential threats, prior to signing a contract, will assist in covering all the bases when it comes to third-party management.