Why does managing Third-Party Cybersecurity Risk matter?
Everyday practice at work now relies on third- party service providers to support the running of the office, workshop or basically any professional environment.
Not only are we allowing non-affiliated parties control, we are more importantly allowing them access to company data and internal systems.
This constant interaction raises alarm bells and red alerts.
How are we monitoring the third parties? These providers process from within company networks and yet we have little control over what they do, or how they do it.
Can we claw our own professional power back? Maybe.
From the moment Target said ‘data breach’ back in 2013, we have come to believe in serious third-party risk, yet we are taking them at increasing rates, over and over. 75% of IT professionals agree that the risk of a cyber breach is serious and increasing, as researched by the Ponemon Group.
More worryingly almost two thirds of data breaches can be linked to 3rd parties according to SohaSystems.
What are the potential risks?
There are various legal risks we are taking with third party vendor outsourcing and they generally fall into the following categories:
• Compliance issues. These are by and large related to categorical legal or regulatory violations, or from behavior that is contrary to the compliance stipulations of company policy and practice.
• Operational. Through outsourcing, companies open themselves up to losing operational control through failing systems or processes. Furthermore, there could be issues with the level of service provided.
• Strategic A third party may or may not hold the same ethos, value or simply brand strategy as your company and may take decisions that are averse to your company’s strategic goals.
Mitigating exposure to risk
In addition to implementing security controls to avert breaches, the third parties should also be focused on cyber resilience, if an attack should occur. This is simple security strategy that comes from looking inside the mind of a typical cyber crook.
A cybercriminal wants access to data because he is looking to profit, credit cards, social security, bank details, if you keep these details, you are an obvious mark. So, like any decent crook, the hacker will do a little background research. That means locating and researching your company on the web and that is likely to include information about your third-party vendors, otherwise known as their backdoor, to your data.
If the cybercriminal can’t get through your security immediately, they will absolutely turn their attention to your third-party providers. If they gain access, through phishing emails or attacking the ports, they will move through your suppliers’ network to you, called pivoting and basically means using one hacked device to access another.
This is all troubling yet manageable with the help of CyberHub Academy. CyberHub Academy's Third-Party Program Solution foresees the risk and allows you as a consumer and business person to identify third-party providers weaknesses and how the data flows between you and them.