Third Party Risk Management is the practice of monitoring and controlling risk to protect the security of yourself and your organization. This is achieved by identifying potential risk exposure through third parties, reducing as much exposure as possible, and raising awareness of vulnerabilities. Through a third party risk management strategy, you can reduce the liability of your organization while building trust with your customers.
Over the last few years, cyber attacks have become increasingly sophisticated. The damage from a cyber attack varies from country to country and can range from major business interruption to catastrophic damage to an organization’s infrastructure and systems. When it comes to protecting your company from vendor risks, it is always in a company’s best interest to engage with vendors before entering a relationship. After that, you need to continuously monitor the supplier and make sure that you are getting the level of service you want and deserve. Don’t forget to keep tabs on your suppliers after you have entered into the vendor relationships.
Data breaches often originate from vendors and are rarely considered a risk. Not only are they frequent, but they are also costly. The average cost of a data breach involving a vendor is now close to $2.70 million. Globally, just under 30 per cent of organizations are likely to suffer at least one breach over the next 24 months.
Do you need any help in managing third party risk, we are happy to help you.
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