Information risk is something that businesses everywhere are having to face, and with risk comes responsibility. All organisations now generate, process and store vast amounts of information to maximise the returns from their investments.

But, who is responsible for defining an acceptable level of risk and how do you understand and analyse the risk posed by your own supply chain, wherever your data is shared?

Every organisation has some element of third party risk associated with their business, but for some, the extended enterprise is huge and complex. With increasing dependency on vendors in today’s interconnected world, vendor risk assessment is more important than ever, and no matter how complex the supply chain is, it is the organisations responsibility to ensure that every vendor is compliant.

This is where the importance of a third-party risk program comes into play.

Implementing Third Party Risk Management Solutions

A vendor risk management solution can help you identify, assess, and mitigate risks related to the use of vendors and other external parties. This includes evaluating vendor security controls, business continuity plans, and other key factors to ensure that your organisation is protected against potential threats.

So, where to start?

It’s important to work with a solutions partner that can help you to do the due diligence on potential vendors, implement robust contract terms and conditions, and ensure ongoing monitoring is in place to oversee how vendors are meeting their obligations.

Start with addressing the high-risk areas and work with the vendor to highlight these and understand what changes can be made to solve them. It is also important to look at the technology involved in the infrastructure. Is it robust? Appropriately protected against cyber threats?

And then there is the biggest overlooked risk of all… people!

A huge 82% of data breaches are caused by human error, therefore a huge part of your strategy needs to be focused on this element. And as the economic downturn hits many businesses’ redundancies and team shifts can add to the increased risk. It’s important to discuss and establish with vendors the below:

• Has the appropriate training been delivered?
• Is the training being refreshed and revised regularly?
• What happens when a senior member of staff leaves?
• Does the onboarding process include training on risk?

As the landscape of third parties involved in your business evolves, it’s time to deploy a vendor risk management solution that can give you peace of mind that your business is appropriately protected from third party and vendor risks.

With C2 you can visualise and manage your digital risk all in one place. Speak to us today to find out how you can ensure your extended enterprise is protected against the ever-evolving landscape of third party and vendor risks.