The term third-party risk applies to all risks introduced by external parties into an ecosystem, supply chain or infrastructure. Common third parties include vendors, partners, suppliers, service providers or contractors with access to internal data, such as intellectual property, systems, processes, internal communications and customer information.
Third-party relationships can significantly increase the vulnerabilities an organization is exposed to. The organization might have solid security and remediation measures in place. However, if the third party does not uphold similar standards, they can still expose the organization to risks.
Hyperconnectivity via third-party can help organizations grow, but it also increases risk exposure and the probability of significant losses. Failure to manage third-party risks can result in regulatory penalties, financial loss, reputational damage and litigation. The first step in mitigating this risk is getting visibility into all entities with access to the organization’s data.
Third-Party Security Risks in the Cloud
Digital transformation is a major trend today, with many organizations expanding their cloud presence and relying more on cloud services. While cloud computing enables extensive optimization and cost savings of computing environments, it also introduces complexity, making cloud security harder. For example, a technology vendor may have third-party vendors downstream, each providing different functions to support the technology.
The security paradigm is changing as the modern computing environment moves away from the isolated enterprise network. When an organization moves to the cloud and relies increasingly on third parties, it introduces the security ri ..
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