How confident are you in your organisation's ability to combat the subtle yet serious cyber threats that third-party partnerships can introduce?

A deep understanding of third-party cyber risks is essential for organisations engaged with external partners.

What is Third Party Risk?

Third-party risk in cyber security occurs when organisations work with suppliers or partners which might cause security problems. This happens if these companies see or use the business's private data or computer systems. It can lead to issues like stolen information or harmful software getting into the systems.

Common third-party risks come from:

• Vendors and Suppliers: These are companies that provide goods or services to your business. They might have access to your systems for billing or inventory management, which could expose your data to risks if their own security posture isn't solid.
• Business Partners: These partners might work closely with your company, sharing sensitive information or accessing parts of your IT network. Hackers could use them as a back door into your data if they don't protect their systems well.
• Contractors and Consultants: These are individuals or firms hired on a temporary basis. They often need access to your company's internal systems or sensitive data to do their jobs, which can be a risk if they don't follow strict security protocols.

What types of risks come from Third Party Engagements?

Engaging with third-party companies is a common business practice, but it carries certain cybersecurity risks that organisations must be aware of. These risks stem from the access these third parties have to an organisation's systems and sensitive data, and the reliance on these external entities to manage their security effectively.

Poorly managed third-party engagements can lead to substantial disruptions and damages. The types of risks associated with such engagements generally fall into several categories, each with its own potential impact on the business:

• Data Breaches: If a third-party provider suffers a security breach, sensitive data like customer information, intellectual property, or trade secrets can be accessed and stolen by unauthorised parties. This can result in financial losses, erode customer trust, and lead to a tarnished brand reputation.
• System Vulnerabilities: Third parties may have different security protocols, and integrating their systems with yours can introduce new vulnerabilities. Attackers can exploit these weaknesses to infiltrate your network, which can lead to operational disruptions, data loss, or even ransomware attacks.
• Legal and Compliance Issues: Companies are often bound by regulations to protect their data. If a third-party fails to comply with these laws, it's not just their problem – it can also lead to legal issues for your company, including fines, sanctions, and legal action.

These risks require careful management because their consequences can be far-reaching, potentially affecting every aspect of your operations. It's important for businesses to understand these risks and implement strong risk management strategies to mitigate them effectively.

How can security teams mitigate Third-Party Risk?

Mitigating third-party risk is essential for security teams to protect their organisations from potential cyber threats. By taking proactive steps, security teams can establish a solid defence against the vulnerabilities that third parties might introduce to their systems.

How security teams can put protective measures into action

Risk Identification:

• Catalogue Potential Risks: List all possible risks that each third party might introduce. This includes looking at their access level, the data they handle, and their security measures.
• Categorise Risks: Organise these risks based on their type, such as operational, legal, or reputational risks. This helps in prioritising them.

Due Diligence:

• Vet Third Parties: Thoroughly check the security practices of all third-party providers. This can involve reviewing their security policies, past incident reports, and financial stability to gauge how seriously they take security.
• Assess Compliance: Ensure they comply with relevant laws and industry standards, which can be confirmed through certifications and audits.

Risk Assessment:

• Evaluate Impact and Likelihood: For each identified risk, assess how likely it is to happen and what the impact would be if it did. This helps in understanding which risks need more attention.
• Document and Update Assessments: Keep a detailed record of all risk assessments and update them regularly as things change.

Mitigation Strategies:

• Create Response Plans: Develop clear plans for responding if a risk were to turn into an actual threat or incident.
• Implement Controls: Put technical controls, like encryption and access controls, in place to reduce high-priority risks.

Contract Management:

• Integrate Security Requirements: Write security requirements into contracts with third parties, including the need for regular security updates and the right to audit.
• Define SLAs: Set specific Service Level Agreements (SLAs) for how quickly third parties need to report security issues and how they should be handled.

Ongoing Monitoring:

• Regularly Review Third-Party Performance: Monitor third parties to ensure they follow through on their security commitments.
• Update Risk Profiles: As third parties change their systems or new threats emerge, update their risk profiles accordingly.

By following these steps, security teams can significantly lower the risks of working with third-party vendors and partners, keeping their organisation's data and systems secure.

How Metomic Can Protect Your Data

In the context of third-party cyber risk management, Metomic can help businesses secure data against external vulnerabilities. Metomic's data security platform is designed to address the unique challenges of sharing information with suppliers, vendors, and partners.

Here's how Metomic fortifies businesses against third-party data risks:

• Automated Data Discovery for Third-Party Interactions: Metomic's tools scan and identify sensitive data within an organisation's SaaS platforms, which might be accessed by third parties. This ensures that all critical data is accounted for and protected before sharing access with external entities.
• Data Loss Prevention (DLP) in Third-Party Exchanges: Metomic's DLP capabilities are critical when exchanging data with third parties. It prevents the accidental sharing of sensitive information in inappropriate settings, a common risk when multiple businesses handle data.
• Advanced Access Controls for External Users: With Metomic, businesses can precisely control which third-party users have access to what data and when, an essential feature for maintaining strict data security across different entities.
• Ensuring Compliance Across Third-Party Engagements: Metomic helps ensure that any data shared with or accessed by third parties remains compliant with regulations like HIPAA, PCI DSS, and GDPR, which is particularly important when these third parties are subject to different regulatory standards.
• Real-Time Alerts for the Human Firewall: Beyond technology, the human element is crucial in data redaction and masking strategies. Metomic’s alert system educates users about security policies, emphasising correctly handling sensitive data. This initiative cultivates a proactive security culture, reducing the likelihood of breaches due to human error.

To discover how Metonic can help improve your data security, book a personalised demo today.