Gone are the days when organizations were self-contained in their own brick-and-mortar buildings. Whether it’s for electricity, Internet connectivity, office supplies or even flower delivery, organizations depend on third parties to function. These vendors, suppliers and business partners often have access to sensitive company data, which could spell disaster in the wrong hands.
Not convinced? Here are four good reasons why companies need to be vigilant about third-party security posture:
1. Third parties are common sources of data breaches.
You’ve undoubtedly heard of major breaches before, but you may not realize that so many of them occur through third parties. British Airways, Ticketmaster and Feedify are some of the latest examples that illustrate just how vulnerable major companies can be when they work with less-than-secure third parties.
Why are vendors and suppliers targeted so often? Because hackers search for the weakest portal to access sensitive data—and often they find that entry point through third parties.
2. It’s the law.
Various regulations stipulate that organizations are legally responsible for ensuring security and privacy when using third parties. Businesses that do not comply can face stiff penalties.
For example, if you process the personal data of EU citizens, you must comply with GDPR’s extensive privacy standards. If you collect, access or process medical insurance data, you must comply with HIPAA’s privacy and security rules. If you collect or process payment card data, you must abide by PCI DSS.
Bottom line? Your third-party security problems are your organization’s problems, and investing in a sound third-party security management system could save you millions of dollars in the long run.
3. Their standards might not be your standards.
Even if you check the cybersecurity posture of third parties, you must ensure that your own internal corporate privacy policies are enforced as well. For example, is it important to your company to make sure third parties are GDPR compliant? Is it important to know the locations of data centers? Do you have specific privacy agreements that need to be adhered to?
Your vendors may be secure on a general level, but not necessarily on your personal corporate level.
4. Hackers are becoming even more sophisticated.
It’s not enough to check your third parties once and assume that they will remain secure forever.
Hackers constantly search for new methods to steal company data, which means that cybersecurity must be checked and updated on a regular basis to detect and plug any possible gaps. This is why organizations must be vigilant about third-party cybersecurity posture all the time.
Contrary to popular belief, vetting suppliers does not require the weeks of time and endless Excel spreadsheets that it used to. Using a solution like Panorays allows you to check vendors in less than 72 hours and to be automatically updated in real time of any cyber gaps.
By monitoring third parties’ cybersecurity posture, you can be assured that your organization complies with regulations, significantly reduces the chances of a data breach, and saves itself a lot of time and money.
Interested in learning more about how Panorays can help you manage your third-party cybersecurity? Click here for more information.