Third-Party Risk Management (TPRM)
According to the Verizon Data Breach Investigations Report (2022), over 62% of data breaches occur through third-party vendors. This underscores the critical importance of implementing robust Third-Party Risk Management (TPRM) practices within organizations’ cybersecurity and data protection strategies.
TPRM is the systematic process of identifying, assessing, and managing risks associated with an organization’s relationships with third-party vendors, suppliers, contractors, or service providers. These external entities often have access to sensitive information and critical systems or perform pivotal functions on behalf of the organization. Hence, understanding and mitigating potential risks arising from these partnerships are imperative for maintaining operational resilience and safeguarding the organization’s reputation.
Key Risks Mitigated by Third-Party Risk
Management (TPRM)
Key Risks Mitigated by Third-Party Risk Management (TPRM)
1. Reduces Financial Risk
Engaging with third-party vendors or service providers inherently entails financial risks. For instance, if a vendor encounters financial instability, undergoes bankruptcy proceedings, or fails to fulfill contractual obligations, the organization can have severe financial repercussions. Therefore, organizations must employ a Third-Party Risk Management framework to mitigate these risks. This enables organizations to systematically evaluate their third-party partners’ financial health and stability, ensuring their reliability and financial security.
2. Enhances Data Security
Third-party relationships often involve sharing sensitive data or intellectual property. A vendor breach of confidentiality can result in adverse consequences such as data exposure, intellectual property theft, or violations of confidentiality agreements. Implementing rigorous TPRM enables organizations to thoroughly assess a vendor’s data security measures and ensure compliance with data protection regulations.
3. Safeguards Reputation
A third-party vendor’s actions or misconduct can substantially impact an organization’s reputation. If a vendor engages in unethical practices or scandals, the organization’s image can be tarnished through association. TPRM practices assist in vendor risk assessment, safeguarding the organization’s reputation.
4. Mitigates Regulatory Risks
Non-compliance with applicable laws, regulations, or industry standards by a third-party vendor can lead to legal and regulatory consequences for the organization. TPRM enables organizations to assess a vendor’s compliance practices. This assessment ensures that vendors adhere to relevant laws and regulations, effectively reducing regulatory risks for the organization.
Third-Party Risk
Management (TPRM) Process
Risk Identification
It involves identifying the organization’s third-party relationships and a comprehensive understanding of the scope of their engagement. This process includes assessing the criticality of the services or products third-party offers.
Risk Identification
A comprehensive risk assessment is conducted once third-party relationships are identified. This assessment evaluates various factors, including financial stability, cybersecurity practices, data privacy measures, compliance with regulatory requirements, the efficacy of business continuity plans, geographical location, and reputation.
Risk Categorization
Third parties are categorized according to risk levels based on the risk assessment. High-risk vendors demand more attention and scrutiny, whereas low-risk vendors may require less intensive oversight.
Due Diligence
Organizations perform due diligence on high-risk third parties to acquire more comprehensive insights into their operations and risk profile. This process may encompass questionnaires, on-site visits, interviews, and a review of audits or certifications.
Ongoing Monitoring
Continuous monitoring ensures that third-party vendors consistently uphold the established security and compliance standards throughout the relationship.
Incident Response Planning
A crucial element of 3rd party risk management involves establishing a well-defined incident response plan and outlining the procedures for addressing potential security incidents or breaches involving third parties.
Remediation & Mitigation
If any risks are identified during the TPRM process, remediation and mitigation strategies are promptly executed to address the concerns.
Reporting & Communication
Maintaining regular communication and reporting with the pertinent stakeholders and executive management board regarding the organization’s holistic risk exposure to third-party relationships is imperative.
About GoRICO
GoRICO is a unified platform solution meticulously crafted to assist modern technology-driven enterprises in comprehending, fortifying, overseeing, and upholding their true security posture. Our solution offers user-friendly metrics driven by seamless integrations, process optimizations, and automated delegation, resulting in substantial time savings for security personnel and risk owners.
Furthermore, GoRICO goes beyond the scope of one-time certification, emphasizing continuous, secure operations and unwavering compliance adherence. We are dedicated to providing a comprehensive understanding of your true security compliance, maturity, and posture, empowering you to sustain a resilient and secure environment over the long term.
GoRICO's Vendor Assessment
Module – Features/Toolkit
Our Methodology
Accorian has a structured Two-Stage Third-Party Risk Management (TPRM) process comprising L1 and L2 Assessments.
L1 Assessment
This process ensures an initial understanding of the client’s security practices, providing a solid foundation for subsequent evaluations in the L2 assessment
Client Onboarding
In the initial phase, clients are introduced to the GoRICO platform and engage in a questionnaire assessment that comprehensively evaluates their security posture. This includes an examination of third-party certifications, risk assessments, information security programs, vulnerability assessments, business continuity measures, and other aspects.
Designated Single Point of Contact (SPOC)
Accorian assigns a dedicated Single Point of Contact (SPOC) to oversee the assessment process. The SPOC plays a crucial role in coordinating all assessment activities, ensuring the active participation of relevant parties, and ensuring the assessment proceeds smoothly.
GoRICO Assessment
The designated SPOC receives the GoRICO assessment and is responsible for responding to the questionnaire. They provide ‘yes’ or ‘no’ responses and offer relevant comments or explanations where necessary.
Response Timeframe
Vendors and third parties are allotted two weeks to complete and submit their assessments.
Assessment Review
Accorian thoroughly reviews once the assessments are submitted. This process involves validating the evidence presented and considering any comments or explanations provided by the vendor or third party.
Note: The L1 assessment primarily focuses on a detailed evaluation of the client’s security posture, relying on their responses and evidence.
L2 Assessment
This process ensures that every assessment aspect, discussion, and documentation is thoroughly reviewed. The outcome is a comprehensive understanding of the vendor’s or third party’s security capabilities, facilitating informed decision-making regarding their suitability as partners or service providers.
Validation of L1 Assessment
Following the successful validation of the L1 assessment, Accorian proceeds to the L2 assessment stage.
Addressing Incomplete or Improper Responses
Accorian focuses on rectifying any incomplete or incorrect responses identified during the L1 assessment. The goal is to ensure that all essential information is accurately captured.
Discussion Arrangements
Accorian initiates communication by scheduling dedicated calls. These discussions primarily revolve around remaining information security (infosec) topics or the need for specific evidence.
Vendor/Third Party Obligations
Vendors or third parties must furnish the necessary evidence within a stipulated timeframe, typically one week. This evidence is critical in substantiating their security claims and fortifying the overall assessment.
Evidence Validation
Accorian undertakes a comprehensive validation process upon receipt of the submitted evidence. The objective is to meticulously verify the credibility and accuracy of the provided evidence.
L2 Assessment Report
Accorian prepares a comprehensive L2 assessment report, which is subsequently shared with the vendors or third parties. This report offers an exhaustive analysis of their security posture, highlighting strengths and weaknesses. The assessment report employs a structured rating framework categorized into four parameters: poor, fair, reasonable, and very good. This rating system ensures a transparent and standardized assessment of the vendor’s or third party’s security practices.
Elevating Vendor Security:
Accorian’s Unique Offering
1. Vendor Awareness and Risk Segregation
Accorian clearly understands clients’ current vendors, expertly categorizing them based on their inherent risk profiles. This enables a targeted focus on critical vendors that demand immediate attention and scrutiny.
2. Benchmarking and Standardization
Our approach revolves around benchmarking and
standardizing vendor risk assessment processes, ensuring a consistent and efficient approach throughout the organization.
3. Scalability
Accorian offers scalable solutions designed to effectively manage TPRM for large organizations with complex vendor ecosystems, allowing for adaptability and growth.
4. Risk Visibility
Clients benefit from enhanced risk visibility through comprehensive risk assessments and data-driven insights, enabling well-informed decisions.
5. Remediation Follow-Up
Beyond merely measuring risk, Accorian actively engages in remediation efforts, reducing risk exposure and elevating vendor security.
6. Dashboarding and Reporting
Our platform features intuitive dashboards, detailed reports, key metrics, and executive insights, facilitating data-driven decision-making and providing a clear overview of vendor risk status.
7. Focus on Vendor Experience
Accorian prioritizes the vendor experience, ensuring a streamlined and efficient risk assessment process that benefits all stakeholders.
Why Partner with Accorian?
Accorian is a leading cybersecurity and compliance firm with a wealth of experience to help navigate organizations on their information security journey. Our comprehensive TPRM services streamline vendor risk assessments, covering every aspect of the vendor lifecycle. With a dedicated team, we facilitate the creation of custom questionnaires, ensuring efficient scoring and reporting. Furthermore, our services, including HITRUST, HIPAA, PCI, ISO, NIST, Incident Response, Risk Assessment, Penetration Testing, vCISO, and Red Teaming, reflect our commitment to providing comprehensive solutions tailored to specific regulatory needs.
Key Differentiators
TEAM OF 100+
SECURITY EXPERTS
COMPLETED 400+
SUCCESSFUL COMPLIANCE
ASSESSMENTS AND AUDITS
ONE OF 10 ACCREDITED COMPANIES
THAT OFFER BOTH AUDIT & TESTING
SERVICES INHOUSE
DETECTED OVER 25,000+
VULNERABILITIES THROUGH 1,500+ PENETRATION TESTING ENGAGEMENTS
DEVELOPED A PURPOSE
BUILT GRC TOOL: GORICO
STAFFED SECURITY
TALENT FOR CLIENTS GLOBALLY
Ready to Start?
Drop your CVs to joinourteam@accorian.com
Interested Position