The Future of Third-Party Risk Management: Trends and Predictions
In 2022, there were a staggering 1,802 data breaches in the United States, compromising the personal information of over 422 million individuals. As cyber threats and data breaches continue to skyrocket, third-party risk management (TPRM) has never been more crucial. Organizations are expanding their supply chains and relying on more third-party vendors, creating a larger attack surface that requires robust TPRM programs to mitigate risks effectively. In this article, we will delve into the key trends and predictions for TPRM in 2023, equipping you with the knowledge to safeguard your organization.
Expanded Attack Surfaces and the Importance of Visibility
As the use of Internet of Things (IoT) technology grows, the attack surface of organizations also expands. It is predicted that there will be over 124 billion IoT devices in use by 2030, increasing the vulnerability of organizations to cyberattacks. Hackers are constantly looking for new endpoints with weak data security infrastructures.
To protect against these threats, organizations need to eliminate blind spots and gain visibility across their entire supply chain. Solutions like UpGuard’s Vendor Risk offer centralized monitoring and customizable security questionnaires to assess and mitigate risks in the vendor ecosystem.
Increasing Vendor Risks and the Need for Vendor Risk Management
Supply chain attacks are becoming more sophisticated, posing significant risks to organizations. Cybercriminals are now targeting vulnerabilities in third-party vendors, taking advantage of organizations that increasingly outsource critical business functions. To protect against these threats, robust vendor risk management (VRM) plans are crucial.
At UpGuard, we understand the importance of effective VRM in mitigating vendor risks and safeguarding organizations against supply chain attacks. Our VRM solution offers a comprehensive set of features to strengthen your vendor risk management practices:
Accurate Vendor Inventory: Keep track of all your vendors, ensuring comprehensive visibility into your supply chain.
Automated Vendor Risk Assessment: Streamline the vendor risk assessment process by automating the collection and analysis of vendor security data.
Continuous Monitoring: Monitor vendor activity and security posture in real-time to identify potential risks promptly.
Assessment Against Multiple Attack Vectors: Evaluate vendors against a range of attack vectors to understand their overall security resilience.
Fourth-Party Risk Monitoring: Gain insights into the risks posed by vendors’ subcontractors and suppliers.
Efficient Communication: Facilitate communication between the VRM committee, senior board members, and vendors to enhance collaboration and address risk-related issues.
By leveraging UpGuard’s vendor risk management solution, you can proactively manage and mitigate vendor risks, fortifying your organization’s security posture against supply chain attacks.
Convergence of Vendor and Internal Risks and the Importance of ESG Focus
The rapid growth of supply chains and the increasing reliance on third-party vendors by organizations have led to a blurring of the lines between vendor risk and internal risk. In today’s interconnected business landscape, it is crucial for organizations to adopt a holistic approach to cybersecurity that integrates vendor risk management into their overall security framework.
Cybersecurity threats can originate both from internal vulnerabilities within an organization and from the external risks associated with third-party vendors. By ignoring either aspect, organizations leave themselves exposed to potential breaches and data compromises. To effectively mitigate these risks, companies must establish robust policies and procedures that encompass vendor risk assessment, monitoring, and remediation.
Furthermore, there is a growing emphasis on environmental, social, and governance (ESG) frameworks within the business community. Companies are increasingly seeking out third-party vendors that align with their internal values and demonstrate a commitment to sustainable and responsible practices. This alignment goes beyond cybersecurity and encompasses broader aspects of corporate social responsibility.
UpGuard’s Vendor Risk provides organizations with the tools to evaluate vendors based on their ESG alignment and custom compliance metrics. By effectively managing vendor risk and ensuring alignment with ESG principles, companies can protect their operations, reputation, and stakeholder trust.
Oliver Parker is a trusted authority in the field of third-party risk management, boasting extensive experience in crafting tailored solutions to address the unique challenges faced by businesses. With a keen understanding of compliance and regulatory requirements, Oliver's expertise lies in helping organizations navigate and mitigate risks effectively.
