How to Manage Vendor Cyber Risk
Here are six tips for managing vendor cyber risk:
1. Establish a list of your vendors which have access to your information or systems. It’s impossible to manage what you don’t know, so maintaining an up-to-date list of vendors is the first step.
2. Remember, cyber risk isn’t one size fits all. Categorize your vendors according to sensitivity of the information and systems they have access to.
3. Establish levels of review and monitoring in line with the risk the vendor poses. A vendor’s access to your information or systems, and the sensitivity of that information, should determine the depth of review and how frequently reviews occur.
4. Know that there should be ongoing reviews. Managing cyber risk is a forever moving goal and ongoing monitoring is the only way to stay on top of it. Keep in mind, threats and methods of attackers change to overcome new defenses; therefore, ongoing reviews ensure that your vendors are staying on top of these emerging threats.
5. Establish a list of fourth parties, also known as your vendor’s vendor, that process or have access to your data or systems. Here are 3 reasons why:
- It’s increasingly common for companies to outsource parts of their processes. As the list of entities that have access to your information increases, so does your risk.
- Ensuring that your vendors monitor their vendors is critical.
- If the sensitivity of the data or the access to your systems and infrastructure is high, then it may make sense that you verify the cybersecurity measures in place for fourth party vendors.
6. Have cyber risk insurance. Cyber risk insurance provides protection for cyber risk and cyber-related events. Two things to keep in mind:
- If things go wrong, cyber risk insurance is often your last line of defense.
- There are several types of cyber risk insurance. Contact your insurance carrier to determine the right type and amount for your organization.
By following these six tips, you’re on track to help protect your organization from vendor cyber risk.
Do you know how to handle it if your vendor has suffered a data breach? Download the infographic.