Effective identity management plays a crucial role in the overall security, enablement, and success of enterprises. However, many business leaders who are not directly involved in IT and security often have only a superficial understanding of identity security. This poses a challenge, as gaining a comprehensive understanding of access, governance, entitlements, and permissions can be difficult and confusing. Additionally, protecting on-premises solutions, cloud environments, and SaaS tools adds another layer of complexity. With that said, third-party risk management (TPRM) becomes critical, especially when vetting potential security vendors. Being able to ask the right questions and identify red flags are key to ensuring the security of enterprises.
When evaluating vendors and suppliers, most assessments tend to focus solely on their technical and functional capabilities. While these aspects are certainly important, they should not be the only factors considered when making a long-term partnership decision. For security vendors, determining their long-term viability is essential. An effective identity security solution needs to be integrated across all environments and protect a large number of identities. It is important to know whether the vendor will still be in business in the coming years. Switching security providers is a complex process, so choosing a financially stable and viable partner is crucial.
Another important aspect to consider is the vendor’s history of technical innovation. It is not just about what they are currently offering, but also about their ability to adapt quickly to new trends. A vendor might have an intriguing technology now, but if they consistently lag behind in innovation, it may not be the best choice for a long-term partnership.
Perhaps the most critical factor to evaluate is the supplier’s level of risk. Has the company experienced any recent data breaches? If so, how did they respond? No CISO or CIO wants to be held responsible for a breach that costs millions of dollars and damages the brand’s reputation. Assessing a vendor’s risk level and security track record is vital.
To effectively assess vendors, it is important to ask specific questions that evaluate their non-technical capabilities that can impact a company’s risk. One crucial area to evaluate is the vendor’s financial health. Requesting audited financials and reviewing the company’s funding and ownership model can provide insights into its stability. Examining the company’s priorities is also important. Evaluating the percentage of employees in areas like R&D or solutions architecture can indicate the vendor’s commitment to innovation. Additionally, understanding the company’s business culture is crucial, as a disgruntled employee with privileged access can pose significant risks. Service level agreements (SLAs) and contracts should also be reviewed to gain insight into the vendor’s operational methods and client interactions.
Furthermore, it is important to consider the vendor’s existing and past customers. Positive references from these customers can provide valuable insights. Metrics like Net Promoter Score (NPS) and Customer Satisfaction Score (CSAT) can indicate how satisfied clients are with the vendor’s services. The customer retention rate is also a useful measure, as it shows how long clients tend to stay with the vendor. Understanding why companies leave is also important, as poor service and security concerns can be red flags.
Lastly, evaluating a vendor’s security and compliance status is crucial. Requesting information about security certifications, data residency, and the use of on-premises or cloud solutions can provide insights into their approach to security. Understanding how the vendor aligns with data privacy regulations, such as GDPR and CPRA, is essential. Compliance with standards like SOC 2 or ISO 27001 can also indicate the vendor’s commitment to security.
With the increasing number of third-party attacks, businesses must prioritize limiting third-party risk from the initial stages of vendor selection. Inadequate security programs pose significant risks to companies. Therefore, organizations must conduct rigorous evaluations of potential vendors. Ensuring that vendors are financially stable, foster a strong company culture, and have a cautious approach to security is essential in reducing the risk exposure for businesses. Choosing the right partner is a fundamental aspect of building a successful identity security program.
In conclusion, effective identity management is vital to enterprise security and success. When evaluating vendors and suppliers, it is important to assess their financial health, technical innovation history, level of risk, and security compliance. Asking the right questions and understanding the nuances of vendor capabilities can help businesses make informed decisions and mitigate potential risks. Limiting third-party risk from the start is essential in today’s threat landscape. By choosing the right partners, businesses can safeguard their identities and protect against potential breaches and reputational damage.