Geopolitical risks can result in cyber-attacks, disruptions to business continuity, and reputational damage to organizations and third parties. Organizations can strengthen their control over third parties by establishing contracts, monitoring activities, and conducting risk assessments. Senior management takes steps such as strengthening policies and controls over data processing. In this article, we take a closer look at how geopolitical risks can affect third-party management and how organizations can strengthen their control over third parties.
The NIS2 Directive is new European Union legislation aimed at strengthening cybersecurity in various sectors, including operators of essential services and digital service providers. From October 2024, companies covered by the NIS2 Directive will have to meet certain minimum cybersecurity requirements. This means that companies must assess their current level of security and develop a plan to comply with the Directive. It is important to work with relevant stakeholders, regulators and supply chain partners to ensure everyone is aware of the requirements. Read more about the impact of the directives and requirements in this article.
Third-party risk management is an important aspect of cybersecurity for any organization. One way to mitigate risks is by using haveibeenpwned.com, a website that lets you check if your email address or password has been compromised in a data breach. By using this tool, you can identify which third-party services pose the highest risk to your organization and take action to protect your data.
Small and medium-sized enterprises face various cybersecurity risks when they outsource key business functions to third parties. These security risks are increasing due to the increasing size and complexity of their outsourced business functions, increased regulatory and customer scrutiny, and the sophistication of cyber attacks.
Third-party security risks are the potential threats that arise from the interactions between an SME and its external vendors or suppliers. These threats can include:
Third-party security risks are escalating for several reasons:
SMEs can mitigate third-party security risks by adopting a proactive and holistic approach that involves:
Third-party security risks are a top strategic risk for SMEs in 2023 as they depend more on external providers for various services. By implementing effective measures to assess, monitor, respond, and terminate their third-party relationships, SMEs can reduce their vulnerability and enhance their resilience against cyber threats.
https://www.deloitte.com/global/en/services/risk-advisory/perspectives/third-party-risk.html https://www.enisa.europa.eu/securesme/cyber-tips/protect-employees/third-party-management https://www.forbes.com/sites/forbestechcouncil/2021/02/11/understanding-the-third-party-im
Published by RiskStudio