How to Use Third-Party Risk Management to Sidestep
Data Breaches
Given its critical role in cyber security and data privacy compliance, an organization must depend on its third-party risk management (TPRM) processes and standards throughout its various business units. However, there is no universal formula for success.
Consequently, a successful TPRM policy or process may consist of various tactics. Similar to risk factors and resource allocation, your strategy might differ from those employed by other organizations in your region or industry.
Some essential elements of TPRM you should consider are:
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Evaluation
Evaluating the security and data protection practices of third parties before entering contracts with them or sharing information. This may be done via questionnaires or requests for audit reports
Continuous Monitoring
Consistently observe the security and compliance status of third parties to detect potential risks and maintain continuous compliance. This can be achieved through technological means or manual checks.
Contract Review & Negotiation
Carefully review and negotiate contracts and non-disclosure agreements with third parties to ensure adequate security and data protection provisions are in place. Establishing templates and requirements ahead of time can facilitate the process.
Incident Response Planning
Establishing a plan for responding to security incidents involving third parties, including communication protocols and escalation procedures. Having contact info and access to critical resources and the incident management team at the third party is crucial.
Cyber Insurance
Cyber insurance is a strategic investment to safeguard against financial losses stemming from third-party data breaches and various cyber incidents.
Reduce Third-Party Risk with Security Awareness
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Collaborating with third-party entities can expose your business to potential risks. Without a Third-Party Risk Management (TPRM) program that encompasses cyber security awareness training, contractors, suppliers, or vendors may inadvertently leave sensitive data susceptible to cyber threats.
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Reducing the human risk element begins by establishing a solid relationship with all stakeholders in your third-party vendor risk management framework. Moreover, investing in awareness training that positively alters end-user behaviors is key to enhancing data protection.
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Enter Dimemetrics. By delivering compelling, insightful assessments of the latest cyber threats and guaranteeing a swift and smooth program implementation, we assist in safeguarding your entire business ecosystem and strengthening your oversight of your cybersecurity infrastructure.