The significance of third-party cybersecurity risks in the realm of enterprise risk has grown significantly in recent years. To combat this issue, organizations have been urged to implement effective third-party risk management programs in order to not only mitigate their risks but also to enhance their protection against attacks that originate from third parties. The key factor here is the effectiveness of these programs.
A recently released e-zine from Dark Reading, titled “How to Use Threat Intelligence to Mitigate Third-Party Risk,” explores the implementation of threat intelligence to establish a continuous risk assessment of partners, suppliers, vendors, contractors, and other third parties. By utilizing third-party threat intelligence, security teams can move beyond the conventional point-in-time view of security and regulatory compliance maturity, and instead, accurately evaluate the risks over time. This convergence of threat intelligence and third-party risk management (TPRM) programs serves as an assurance that third parties do not pose a high risk of data breaches or other cybersecurity incidents. Furthermore, in the unfortunate event of such an incident occurring, these programs can also help to minimize the impact.
In the past, TPRM programs, if they were in place at all, typically involved identifying, categorizing, and assessing the risk associated with third parties. This was often accompanied by the use of due-diligence questionnaires, which were designed to gauge the level of maturity of their security and regulatory compliance programs. Additionally, enterprises would conduct thorough independent investigations of vendors before finalizing any contracts. Lastly, organizations would incorporate new partners and suppliers into their incident response planning to minimize the impact of any potential incidents.
Alla Valente, the senior research analyst at Forrester who covers governance, risk, and compliance, as well as third-party risk and supply chain risk, highlights the limitations of relying solely on questionnaires. She emphasizes that while questionnaires may provide some insights into a company’s policies and certifications, they do not reveal crucial information about the internal workings of their networks or systems. Moreover, they fail to address broader risks, such as geographic considerations or potential targeting by nation-states. Valente stresses the importance of uncovering these factors, stating, “These are all things you want to identify.”
Although there is limited data available on how enterprises utilize TPRM threat intelligence to enhance their third-party risk management, TPRM programs are gaining momentum across the board. According to Prevalent’s 2022 Third-Party Risk Management Industry Study, two-thirds of the respondents noted that their TPRM programs have garnered increased visibility among executives and the board compared to the previous year.
To gain insights into reducing third-party risks for their organizations through the utilization of threat intelligence, readers are encouraged to refer to Dark Reading’s “How to Use Threat Intelligence to Mitigate Third-Party Risk.”
In conclusion, as third-party cybersecurity risks continue to evolve and pose significant threats to organizations, effective third-party risk management programs have become crucial. By incorporating threat intelligence into these programs, organizations can gain a comprehensive understanding of the risks associated with their third-party relationships and take proactive measures to mitigate them. As TPRM programs gain traction, there is a growing recognition of their importance among executives and the board. Ultimately, leveraging threat intelligence becomes an essential strategy in safeguarding organizations against the detrimental consequences of third-party cyber attacks.