Regardless of the business or industry, most institutions today require the support of third-party suppliers for successful and efficient operations. From bookkeeping and payroll to web hosting and SaaS providers, marketing, maintenance, and more, third parties often fill vital roles organizations need for smooth operations. Third-party services can reduce costs and increase business speed, but the benefits do not come with out risk. Entrusting key parts of your business and sensitive data with third-party providers means you are vulnerable to the possible weaknesses and shortcomings of those third parties.
Organizations who outsource vital business functions to third parties become part of extended third-party networks, which have grown both in size and complexity in recent years. These complex third-party networks require monitoring to ensure that these partnerships remain an advantage rather than creating a vulnerability. A third-party supplier with weak cybersecurity practices may leave your organization more vulnerable to a supply-chain attack, where systems are breached through a third-party with access to your systems and data. As use of third-party providers grows, organizations must effectively manage their cyber risk, both internally and externally.
What Is TPRM?
Third-party risk management (TPRM) is often used interchangeably with other industry terminology, such as supplier risk management, supply chain risk management, vendor management, or vendor risk management (VRM). While definitions may vary slightly, “third-party risk management” and like terms describe the process of identifying and mitigating risk associated with the use of third parties.
Third-party risk management ensures that the use of third-party solutions does not create vulnerabilities, business disruptions, or have a negative impact on business performance.
With the consequences of a third-party breach including significant financial loss, investigations & lawsuits, damaged reputation, and loss of sensitive company information, effective third-party TPRM is critical to the continued success of any organization.
Tools & Solutions
Security Rating Tools
Security rating solutions provide data-driven, quantifiable measurements of an organization’s overall cybersecurity performance that are based off a cybersecurity risk assessment. The scores are intended to provide organizations with an independent view into the security practices of the organization itself, or for their third-party vendors. However, security rating tools are based only on open-source intelligence, offering limited risk insight of first- and third- party systems and process.
Vendor Risk Management Platforms
Vendor Risk Management (VRM) software collects vendor risk data, helping organizations to align risk tolerances and prevent data breaches, compliance issues, and supply chain vulnerabilities. VRM platforms mitigate risk by highlighting poor security practices, vulnerabilities, and high-risk vendors, with the ability to plan and track remediations.
Customizing Your TPRM Program
Third-party risk management is crucial to the success of today’s organizations. Effective TPRM will prevent business disruptions, protect your reputation, and bottom line. The risk insight gained from TPRM also assists vendor vetting and onboarding and can strengthen vendor relations for their duration.
myCYPR offers customizable risk management with increased visibility of risk for you and your vendors. Combining open-source intelligence of risk scoring tools and the in-depth risk insight of VRM platforms, myCYPR offers organizations a comprehensive solution to third-party risk management. See, score, and secure your organization with one powerful tool.
To learn more about how myCYPR can help you customize an effective TPRM program, request a demo.