Tuesday 5th April 2022
BLOG: Reducing Cyber Risk When Doing Business with a New Vendor
Organizations are becoming alert to the risks of supply chain cybersecurity threats and attacks and according to recent research discussed in a previous blog, it’s likely that data breaches and other system attacks will grow not only in number but also in sophistication. As a result of this organizations need to understand vendor risk management more than ever.
It is growing increasingly widespread for organizations to outsource resources. While these external sources may provide great help for organizations, as the list increases, so does the risk.
Organizations need to establish an up-to-date list of their vendors that have access to their systems or information, vendors should be categorized depending on the sensitivity of the information and systems they have access to. A list that includes fourth parties (vendor’s vendors) should also be created as this creates a wider picture.
Another key component for organizations is continuous risk monitoring and ensuring that they stay on top of growing cyber risks. Threat actors tend to change their methods of attack to overcome new defenses, this is why continuous risk monitoring is essential to validating that vendors are prepared for emerging threats.
Cyber risk insurance is another aspect of vendor risk protection, cyber risk insurance provides a layer of risk mitigation for cyber-related events. For instance, if there is a major cyber-related incident such as a data breach or something adjacent, cyber risk insurance can help compensate for the cost associated with this incident. Cyber risk insurance can be the bridge between enduring the aftereffects of this breach or being overwhelmed by them.
With the ongoing threat of vendor cybersecurity incidents like data breaches and ransomware, it’s critical that organizations must ensure they are fully equipped to deal with these types of risks. All organizations should make third-party risk management a priority.
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