Did you know that 63% of data breaches are linked to third-party vendors?
Outsourcing products or services to a third party can pose a significant threat to your organization’s and customers’ data privacy. It opens the door for cybersecurity risks if the third-party vendor’s information security is insufficient and they experience a breach. To protect your data, it is crucial to have controls and precautions in place both at your organization and at your third parties’ to defend against data breaches and cyberattacks such as phishing and malware.
This section will explore best practices to reduce third-party cybersecurity risk and ensure the safety of your organization’s sensitive information.
Best Practices to Reduce Third-Party Cybersecurity Risk
When collaborating with third-party vendors, it is essential to prioritize cybersecurity and minimize the risks associated with sharing sensitive information. By implementing the following best practices, organizations can strengthen their defenses against potential cyber threats:
- Verify strong third-party risk cybersecurity monitoring and plans: Before engaging with a third-party vendor, conduct a thorough assessment of their security testing procedures. This includes evaluating their penetration testing and social engineering testing practices. Additionally, ensure that the vendor has a robust incident detection and response plan in place to address any security breaches swiftly and effectively.
Recognizing and Mitigating Third-Party Security Risks
Working with third-party vendors introduces additional cybersecurity risks that organizations must address. A breach in a third-party vendor’s security and privacy measures can have serious implications for an organization’s overall cybersecurity. Hackers often target third-party vendors as a potential entry point to gain unauthorized access to valuable assets. As a result, data breaches caused by third parties are on the rise, posing significant financial, operational, and compliance risks, as well as reputational damage and potential liability for organizations.
Organizations must prioritize visibility and control over their third-party vendor relationships to mitigate third-party security risks effectively. Evaluating and assessing potential cybersecurity risks throughout the supply chain is essential in identifying vulnerable areas. Compliance with data security laws and regulations is crucial, as organizations can be held accountable for third-party data breaches and the resulting consequences.
Mitigating third-party security risks necessitates a comprehensive understanding of common threats, such as privilege misuse, human error, data theft, social engineering, and software supply chain attacks. Organizations must implement measures to manage these risks effectively, including robust third-party risk management frameworks, vendor risk assessments, defining the criticality of cybersecurity risks, establishing governance and monitoring protocols, and requesting SOC (Service Organization Control) reports from both third-party and Nth-party vendors.
