Four Steps to Build a Proactive Third-Party Cyber Risk Management Program
To shift from reactive to proactive, security leaders should first focus on operationalizing risk intelligence. Without actionable intelligence, managing vendor risk becomes a daunting task, akin to searching for a needle in a haystack.
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1. Collect Actionable Risk Intelligence
It's crucial to have a robust risk intelligence system that translates data into actionable insights. Generic questionnaires overwhelm vendors and drastically slow down the procurement process. Plus, they are often left unfinished, making it impossible to pull intelligence from the information. Instead, collect and analyze additional data from open-source intelligence (OSINT) sources and fill gaps with more targeted questionnaires when needed. Use that supplementary data to extract real intelligence from the information you collect.
Expert Tip: Ensure Data Quality
You must ensure data quality before turning data into intelligence. It’s important that risk data is accurate, timely and complete so it doesn’t compromise your ability to make good decisions. With that in mind, ensure the tools you’re using provide high-quality data, then cross-verify that data, check sources and update your data regularly.
2. Implement Continuous Monitoring
Monitor vendors' risk scores regularly. To prevent information overload and resource strain, determine your key risk thresholds and set up alerts based on them. This way, you will only get alerts for the most pertinent concerns.
3. Form Strong Partnerships with Vendors
Establish a collaborative relationship with vendors. Don’t burden them with questionnaire requests. Instead, collaborate using high-quality intelligence to foster trust and share incremental improvements. Communicate alerts and tactical guidance/support to vendors when you identify a vulnerability that requires action, like a spike in ransomware susceptibility.
Expert Advice: How to Handle Risky Relationships
If a vendor is unresponsive or fails to remediate identified risks, more drastic measures may be necessary. Communicate your concerns about the vendor to internal stakeholders and decision-makers. Depending on the nature of the relationship with that vendor, and how embedded the vendor is within your environment, you may want to suggest a few follow-up actions to isolate systems connected to the vendor, withhold payment, or terminate the business relationship. Advise internal decision-makers to set up contractual terms that allow these types of actions when necessary. Clearly communicating these expectations from the beginning of the contract can set the right tone for vendor compliance.
4. Leverage Technology and Automation to Free Up Time
Use advanced tools and automation to continuously scan for vulnerabilities and monitor risk indicators. Set risk tolerances and automate alerts to notify you about emerging threats. A reduction in manual efforts will help your team focus on the most important risks and vendor relationships, freeing up valuable time to focus on strategic initiatives instead of transactional work.
Cyber risk platforms, such as Black Kite, offer a centralized location to continuously monitor the health of your entire vendor ecosystem and make it easy to implement automation.