Several organizations are switching to third-party service providers for many reasons. However, they often forget about the potential third-party risks linked to their managed services. Further, it’s very crucial for an company to protect their business from these third-party risks. Because they share their entire data and system to the them.
What is Third-Party Risk Management?
Third-party risk management is a well-defined process whereby companies analyze, monitor and manage the risks. They do it to protect their data and operations with the third parties. Many times, the companies even share their credentials with those service providers. make you system at risk.
There is a news that Wipro, the third-largest IT company was under threat of cyber-attack. Their security center detected dubious activities within its network. Though they informed that they investigate over 4.8 million alerts in a year. Even Capgemini’s security experts also detected and monitored similar suspicious activity. Usually large organizations are in the target of phishing attempts.
Now, let’s find out more of these risks and try to minimize for your business.
6 Ways to Manage Third-Party Risk
Evaluate your third-party who do your services: Check the following:
- Whether they comply with all industry standards and government regulations
- If the third-party have prior experiences with similar companies like yours
- Are you confident enough with your third-party services?
Assessing the third-party risk
Before you sign any contract form with the third-party, you must read all the terms & conditions and other security measures. Check, if you can prevent any violation of regulations and take immediate action on it.
You should onboard the third-party into your business and give proper training to understand your best practices and policies. You must arrange an orientation program to clear about the audit check. So, when the audit will take place, they should take care of all those issues as per the contract.
You should monitor the third party, their access to your system and their overall supports to your business objectives. Many aspects of third-party relationships can change. There may be some implications. You should examine and respond to the risks and security issues. You can introduce threat intelligence to avoid any organizational data theft.
It’s vital that you must have a well-defined process and right metrics in place. For that, you can assess each contract with the third-party. Then you can evaluate their performances and make a document of it. Next, you can implement the “fraud detection” to minimize the risks for your business.
Employing an iterative approach
You can improve risk identification. You can do it by gathering some information before agreement with the third-party. After then you can review their business environment. Last, you should focus on the cause of any disruptions and how to rectify the risks with a timely approach.
All Blue Solutions offers end-to-end security solutions and complete compliance solutions with CISA. We ensure that your data don’t leak and provide you a realistic development environment.