What is Third Party Vendor Management?
Third Party Vendor Management in Cyber Security is the process of managing external vendors who provide services and products that are related to IT security. This process includes assessing the vendors' security practices and policies, monitoring them and making sure they keep up with the latest security standards, and verifying that they are in compliance with applicable laws and regulations. The goal is to ensure that external vendors are properly managing their IT systems and data in order to protect the organization from cyber threats.
Importance of Third Party Vendor Management in Cyber Security
Companies like Equifax, Target, and Marriott have all suffered data breaches due to third-party vendors. The importance of Third Party Vendor Management in Cyber Security is that by managing external vendors, organizations can better protect themselves from potential cyber threats. The process helps identify and address any issues before they become a major problem. This is especially important for organizations that rely heavily on third-party services to provide services, applications, and data to customers. An example of a third-party cyber threat or breach is a hack of a third-party vendor’s systems that results in the exposure of sensitive customer or business data.
Effective practices to manage vendor risk include:
Firms should manage cybersecurity risk that can arise across the lifecycle of vendor relationships using a risk-based approach to vendor management.
1. Research the service provider: This includes researching the provider’s reputation and background and making sure they have a valid and up-to-date security certification.
2. Review the provider’s security policies and procedures: This includes reviewing their security policies and procedures to make sure they are comprehensive and up-to-date and that they comply with applicable laws and regulations.
3. Review the provider’s security posture: This includes reviewing the provider’s security posture to make sure it is up-to-date, including their hardware, software, and systems.
4. Review the provider’s data security practices: This includes reviewing the provider’s data security practices to make sure they are secure and compliant with all applicable laws and regulations.
5. Review the provider’s incident response plan: This includes reviewing the provider’s incident response plan to make sure they have a plan in place to respond to potential security incidents.
6. Perform a risk assessment: This includes performing a risk assessment to identify and analyze potential risks associated with the provider, including the potential for data breaches or other security incidents.
In conclusion, Third Party Vendor Management in Cyber Security is an essential practice for organizations to protect themselves from potential cyber threats. Organizations should assess the security posture of their vendors, review their security policies and procedures, and perform a risk assessment to identify and analyze potential risks associated with the provider. By following these practices, organizations can better protect themselves from potential cyber threats.
