The number of data breaches is on the rise, and companies are struggling to keep up with the demand for third-party risk monitoring. This article will explore the need for third-party risk monitoring and the benefits of using a third-party risk management platform. Keep reading to learn more.
What is third-party risk monitoring?
Third party risk monitoring management is the process of assessing and mitigating risks associated with third-party vendors and suppliers. For example, a third-party vendor might have lax security controls that could lead to a data breach. A third-party risk assessment should be performed when an organization is considering working with a new partner or when there is a significant change in the relationship with an existing partner. Risks include financial instability, data breaches, or regulatory compliance issues.
If your organization works with cloud computing, you should know the risks. Cloud computing can be a very efficient way to manage and store data, but it also carries risks that must be mitigated. Security is a top concern, as cloud storage opens your data to potential breaches from outsiders. In addition, cloud-based applications can be difficult to manage and support, leading to outages and other service disruptions. By using a third-party risk monitoring service, you can identify and address these risks before they cause damage to your business.
Why should an organization implement third-party risk monitoring?
There are several reasons why organizations should implement third-party risk management programs. First, the number of organizations using third-party vendors has increased significantly in recent years. Gartner reports that 85 percent of organizations use at least one cloud provider. Second, the data shared with third parties has also increased dramatically. The Ponemon Institute estimates that the average enterprise shares more than 1,000 sensitive files with third parties each month.
Lastly, the consequences of a data breach can be devastating for an organization. A study by IBM found that the average cost of a data breach is $3.8 million. Given these factors, it is clear that organizations need to take steps to mitigate the risks associated with their use of third-party vendors and suppliers. One way to do this is through Third-Party Risk Monitoring (TPRM). TPRM is a process where organizations assess and monitor the risks posed by their third-party vendors and suppliers on an ongoing basis. TPRM involves identifying which vendors pose a risk, assessing the severity of that risk, and taking steps to mitigate it.
What industries can benefit from third-party risk management?
There are many industries that can benefit from third-party risk management, but some of the most common are technology, healthcare, and financial services. Each of these industries has a unique set of challenges and risks that can be managed through a third-party risk management program. Third-party risk management is a critical part of doing business in the technology industry.
With companies like Google and Amazon dominating the market, it is more important than ever for businesses to partner with reliable and trustworthy third-party providers. By implementing a third-party risk management program, businesses can ensure that their data is safe and that their systems are secure. The healthcare industry is also increasingly reliant on third-party providers. With the Affordable Care Act, healthcare providers are now required to share data with third-party organizations in order to provide patients with the best possible care.
By implementing a third-party risk management program, healthcare providers can ensure that their data systems are protected. The financial services industry is also at risk for data breaches. In order to stay competitive, financial institutions are increasingly turning to third-party providers to manage their operations.
Overall, the need for third-party risk monitoring is important in order to protect an organization’s data and operations. By having a third-party risk management plan in place, an organization can be more prepared for potential incidents and have a better understanding of how its systems are interconnected.