Jun 10, 2022
Sohini Roy
Third parties include vendors, partners, or service providers that work with an organization, often referred to as entities. These can be suppliers or vendors upstream and sellers or distributors downstream. Third-party Risk Management (TPRM) is concerned with identifying and assessing the risks arising from relationships with third parties. The use of third parties imposes risks such as cyber risks, financial risks, and reputational risks, which must be comprehensively assessed and mitigated.
Key Risks of Third-Party Relationships:
Cyber Risk: Includes data breaches and security issues.
Financial Risk: Disrupts the financial stability and reliability of the organization.
Reputational Risk: Affects the organization’s reputation due to security issues or non-compliance.
Importance of Third-Party Risk Management:
Effective TPRM is essential to prevent data breaches, reputational damage, and other risks. The outsourcing of services introduces security control challenges, which can be mitigated through a structured risk management process.
Five Steps for Managing Third-Party Cyber Risk:
Identify Third-Party Surface: List all third-party vendors and assets.
Understand the Risk: Analyze and score the risks introduced by each third-party entity.
Assess and Prioritize: Categorize risks by priority, validate responses, and set regular assessment schedules.
Expand: Use third-party risk exchanges to streamline assessments.
Review and Repeat: Continuously review, measure, and optimize risk management practices.
About Genesis:
Genesis is a cyber risk management platform that combines attack surface and third-party risk management into a single solution. It helps businesses monitor their cybersecurity posture, map assets, and reduce attack surfaces to prevent data breaches. By showing the likelihood of breaches through a risk score, Genesis enables proactive security measures to stay ahead of potential attacks.
