Enterprises have come to rely on large ecosystems of third parties to expand their capabilities while remaining agile. An IT security incident anywhere in this ecosystem can quickly spread resulting in financial loss for your organization.
All major IT security standards, best practises and regulations require third-party cyber risk management, such as ISO27001, CIS Controls v8, NIST CSF, GDPR, CCPA. Another key aspect of third-party risk is the importance of being able to demonstrate to your customers that you are a trusted third party, and you have the appropriate controls and cyber hygiene in place.
Despite the importance of having an effective third-party cyber risk program, many organizations and the majority of medium-size businesses struggle to address this area. The difficulty arises from need to collaborate across multiple internal and external stakeholders with a scalable process.
Third-party services speed up time to market, provide technical expertise, develop tools and build internal capabilities. The challenge is building a secure scalable process to identify, measure and manage third-party risk that delivers actionable insights, reduces risk and fosters collaboration with internal and external stakeholders.
In cybersecurity, TPRM is more about preventing damage than repairing it. This approach calls for management centralization and continuous monitoring of third-party networks and IT processes.
Before we can scope any third-party risk scenarios, it is necessary inventory all of your third parties. Third parties include suppliers, consultants, cloud services, experts partners, and clients.
Our risk-based Cyber Risk Quantification approach will assess your controls and the controls your third parties have implemented to ensure that your digital assets are protected, regardless of where they are hosted.
Do you have concerns about your existing cloud computing services? Or are you migrating critical services to the cloud? Cloud computing provides huge benefits to an organization–from time to market to scaling services. With CRQ, we identify and quantify the risk scenarios for your critical digital assets, such as PII and PHI, which will allow you to make investments and implement controls that improve your cybersecurity and cyber resilience.
A risk-based method to inventory your third parties, the critical digital assets they process and have access to, and then scope the risk scenarios associated with those third parties will inform your cybersecurity strategy. With your top third-party risks cataloged and scoped, you can address third party issues promptly or implement controls where necessary.
Navigating regulatory compliance risk in third-party management is essential, particularly in handling protected health information (PHI). If there is a third-party breach or a third party mishandles PII or PHI, you can be held responsible, which can lead to severe penalties, including fines and reputational damage. Ensuring that third parties strictly adhere to data protection laws, such as HIPAA and GDPR, is not just a legal necessity but a critical component of risk management.
Schedule a meeting with one of our third-party cyber risk experts to discuss how you can improve your existing program or initiate a third-party cyber risk management project.
By implementing a risk-based CRQ approach and leveraging the guidance from the 2023 NACD Director's Handbook on Cyber-Risk Oversight, boards can meet the compliance requirements of evolving regulations.
Define a third-party policy with critical internal and external stakeholders and implement a process that aligns with your security requirements.
Create an inventory of third-parties that collect, store, have access to, or otherwise process critical digital assets or business processes.
Identify and quantify the top risk scenarios that your third-party services expose you to with Cyber Risk Quantification.
Require that third parties demonstrate certain controls and require certifications from standards bodies.
Use external auditors to independently verify and validate the controls and compliance of your third-party vendors.
We specialize in identifying, measuring, and quantifying in monetary terms the potential cyber risks associated with your third-party relationships, ensuring that your organization is not only aware of these risks, but prepared with risk-based insights. Leveraging the FAIR methodology, our CRQ approach enables you to understand the financial impact of each risk, prioritize effectively, and allocate resources efficiently, ensuring enhanced security and compliance in a complex digital ecosystem.
We look forward to hearing from you.
Third parties may have access to sensitive data, systems, or networks of the organization, and if their security posture is not robust, they can become a conduit for security breaches. Some of the risks are supply chain attacks, non-compliance, and a network breach.
In a digital economy, cyber risk has become one of the top three operational risks that organizations face. The extended enterprise or third-party model rely increasingly on a vast ecosystem of externalized cloud and IT services, which are essential to keep organizations functioning. Ransomware accounted for 27% of all third-party attacks in 2021.
Identify your key third parties, with a focus on third parties that interact directly with your IT system.
Perform CRQ analysis on the cyber risk scenarios to identify the most probable and most costly risks.
Ensure that controls are in place to reduce the the probability or the magnitude of a loss event cause by a third party based on the CRQ analysis.
Continually monitor third parties.