You can ensure compliance in line with your organization’s ethics through third-party compliance evaluations and identifying exposure to regulatory risks from the actions of vendors, suppliers, and other third parties. Crisis management starts at the top and serves the interests of management in keeping your organization viable. Under GDPR, organizations (when asked) are legally bound to provide assurance to regulators that these third-party service providers are compliant with new regulations and have good cybersecurity and privacy controls in place.
Risk culture should extend outside your organization to third party suppliers and partners so that you can ensure those third parties are managing risks within guidelines and meeting your risk standards. Relevant key issues include cloud security, customer services, supplier management, and legal and regulatory compliance.
You can reduce your risk exposure by holding your third parties accountable to meeting your risk management performance standards. Actionable, expert advice relating to spend, segmentation, collaboration, risk, and performance management must be well integrated into your policies. Once you have established more formal protocols, you can build an evolving third-party risk management function to identify and respond to all risks on an ongoing basis.
If you continue to hold personal information when storing or using it in the cloud, you need to take reasonable steps to ensure that it remains secure. These may include robust management of the third party storing or handling your organization’s personal information, including effective contractual clauses, verifying security claims of cloud service providers through inspections, and regular reporting and monitoring. You should be aiming to proactively identify potential risks, verify compliance, and monitor for changes that may create new risks or compliance gaps so that you can effectively manage the remediation of issues with third parties.
Organizations need to know all service providers and what personal data is being shared with them. To assist management with identifying the third-party risk universe and risk rankings, organizations implement vendor risk management programs as a formal way to evaluate, track, and measure third-party risk, assess its impact on all aspects of business, and develop compensating controls or other forms of mitigation to lessen the impact on business if something should happen.
Whether new or long-term vendors, they often look forward to building and maintaining a successful, efficient, and cost-effective partnership with the businesses that engage them. Anything your organization does carries risk, at the very least internally, but you can keep close tabs and institute governance measures to greatly mitigate that risk. You need to design a third-party program that can scale efficiently and grow rapidly with your organization.
When considering regulatory compliance, successful management teams also consider the regulatory compliance profile of third-party vendors used to develop, deploy, or service a product. Simply put, you need a single, collective view of your vendor risk in order to manage it well and have a more stable and productive business ecosystem, as well as effective risk management for your organization that chooses to manage risks within its balance sheet and achieve the highest value added.
Even without an elaborate testing setup, there are things you can do to lower the risk associated with patching. With the power behind integrating vendor risk, cybersecurity, and business resilience by removing silos and connecting risk management, cybersecurity, and business continuity, your organization can develop the cyber resilience it needs to meet the increasing threats of cyber disruption.
Want to check how your Third Party Risk Management Processes are performing? You don’t know what you don’t know. Find out with our Third Party Risk Management Self Assessment Toolkit: