Third-party risks are widespread in the supply chain and can cause substantial damage. Loss of revenue and sensitive information, operational downtime, legal complications, compliance issues and damaged reputations can all arise from a single breach.
If your company lacks a reliable third-party risk management plan, it’s almost impossible to bring in vendors without exposure to risks from cyber threats. This article will explore ways to effectively manage third-party risks so you can confidently bring vendors on board.
First, let’s look at the case of a significant supply chain attack.
Data Exposure and Vendor Risks: A Cautionary Tale
A perfect example of a significant supply chain attack is the recent Okta breach.
In this case, a hacking group known as Lapsus$ carried out a supply chain attack that targeted Okta’s customers instead of Okta itself. The threat actors had access to a Sitel support engineer with entry into Okta’s resources and actively used that to control a single workstation.
The Okta breach exposed several financial institutions to attacks, including Western Union, Ally and Amalgamated Bank. The breach demonstrates what happens when organizations depend on third-party solution providers without a proper third-party risk management program.
Unfortunately, third-party service providers may be lax in implementing robust cybersecurity frameworks, controls and strategies. Therefore, organizations should explore a third-party risk management program that can assess vendors in the supply chain, communicate about threats and respond quickly to security incidents to minimize supply chain risks.
Why is Third-Party Risk Management Important?
Now that you’ve seen how much third-party risks can affect your business, let’s explore why managing the ..
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