Third-party Risk Management
Third-party risk management refers to the processes and procedures organizations use to identify, assess, and mitigate risks associated with the use of third-party vendors, suppliers, and partners. These third-party relationships can introduce a variety of cybersecurity risks, such as data breaches, intellectual property theft, and supply chain disruptions.
Key Components of Third-party Risk Management
- Inventory: creating and maintaining an inventory of all third-party vendors, suppliers, and partners that an organization interacts with on a regular basis.
- Assessment: conducting an assessment of the risks associated with each third-party relationship, which may include evaluating the vendor's security practices and policies, data protection measures, and overall cybersecurity posture.
- Contract Management: ensuring that contracts with third-party vendors include appropriate cybersecurity clauses and requirements, such as data protection, incident response, and breach notification.
- Monitoring and Oversight: continuously monitoring and overseeing third-party relationships to ensure that vendors are meeting cybersecurity requirements and expectations.
- Incident Response Planning: developing and testing an incident response plan that includes procedures for responding to cybersecurity incidents involving third-party vendors.