Introduction
Third-party risk management is a very serious and ever-more pressing need than ever before. Our monumental reliance on software as a service (SaaS) tools only grows with each new technology that we integrate into our lives, homes and workspaces.
Meanwhile, more than 80% of companies share their cloud data with third parties. With the increased use of SaaS and other services, it is essential to understand the risks associated with third-parties and how to best manage them. This is the best way to prevent malicious actors or accidental data loss.
How to Approach the Issue
Third-party risk management involves assessing the potential security vulnerabilities associated with working with outside parties; such as financial or reputational damage, data breaches, or legal liabilities. It also includes developing strategies and processes to identify, assess, monitor and mitigate these risks. By understanding the potential risks and implementing appropriate measures for managing them, you can reduce your exposure to liability and ensure that your systems remain secure.
Meanwhile, it’s not just about your data being sold. Your application vendors also have their own vendors; and they have their suppliers; and the supply chain goes on near-endlessly after that. That’s a lot of organizations with access to your data, all the way down the line!
All this necessarily opens you to the possibility of phishing and ransomware, as well. If a hacker can break into an organization and steal some of your personal data, then they could ransom the company or use it to phish you directly for more information.
Managing Third-Party Risks
Be aware and careful of who has access to view the data you store on the software that you use. This will enable you to make better decisions about the privacy of your confidential information.
Pivoting to better-protect your data may involve internal and external changes to your security posture as it currently stands, and that might even stymie productivity for a short time. That minor obstacle, however, is nowhere near as important as securing your data for the future.
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