As the world becomes more digitized and interconnected, the risk of cyberattacks grows larger. In fact, according to a recent Checkpoint 2023 Security Report, 2022 was a year when cyberattacks surged to an unprecedented level due to the Russian-Ukranian conflict. Security professionals are constantly pulled in many directions, trying to address a myriad of security concerns. One of the biggest risks that is often overlooked is third-party security risk, even though over 50% of cyberattacks come from third parties (Ponemon Institute). Failure to properly manage this risk can lead to existential threats to organizations. This blog will explore the challenges of managing third-party security risks and provide information on how you can address these risks effectively.
Third-Party Risk Management is Not Prioritized
Despite the widespread threat posed by TPSRM, organizations tend to allocate a relatively small portion of their security budget toward it according to a recent report, “The State of Third-Party Security Risk Management Report 2022.” On average, TPSRM only receives about 8% of the total security budget, and 32% of companies report spending between 1% and 5% of their security budget on managing third-party security risk. To prepare for the inevitable third-party attack, companies must prioritize TPSRM in practice and in budget.
The Challenge of Managing Third-Party Security Risks
Managing third-party security is no easy task. The digital transformation and supply-chain challenges have made it increasingly difficult to monitor and mitigate third-party risks. The growing number of vendors for many companies has made it crucial to have an effective, scalable strategy for managing third-party security risk. Unfortunately, most existing solutions offer an incomplete picture of third-party risk, making it impossible to vet, assess, monitor and mitigate threats at scale.
The consequences of a third-party breach can be devastating, including loss of revenue, damage to brand reputation, and legal repercussions. In addition, the process of identifying and addressing a breach can be time-consuming, expensive, and resource-intensive.
An End-to-End Solution
The optimal approach to tackle these challenges is to implement a comprehensive solution that covers the entire Third-Party Security Risk Management (TPSRM) process. This solution should cover the full range of services required for a complete and holistic TPSRM program. Automated components that speed up the security questionnaire process will save you time and make the process more efficient. A third-party-friendly solution that simplifies collaboration and speeds up the process for your vendors, MSPs, and suppliers is also important. In addition, seamless communication that eliminates friction with your third party and enables better communication, collaboration, and remediation is critical. Finally, having professional support that includes knowledgeable, well-trained security professionals helps you use the tool in the most efficient and effective way for your organization.
Next Steps
Failure to prepare for a third-party breach leaves organizations exposed. While it is impossible to know where in your digital supply chain a cyber breach will originate from, by implementing an effective TPSRM program and leveraging an end-to-end solution, you can better manage third-party security risk and avoid the consequences of a third-party breach. Download our guide and learn what to look for in a TPSRM solution.
