Vendor Risk Management

Why You Should Assess Your Vendor's Security Performance Frequently

Noah Simon | May 7, 2015

Third party breaches still account for a large percentage of security incidents. In fact, according to this year's Verizon DBIR report, in 70% of attacks where there was a known motive, a secondary victim was involved. These victims could be vendors, business partners, or vital pieces in supply chains. While the common phrase that “you are only as strong as your weakest link” has been used ad nauseum, it certainly rings true. The following are just some of the reasons why continuously monitoring the security of third parties is crucial:

Security posture can change at any time

New vulnerabilities emerge each day. Even though it is time-consuming for companies to address these internally, the same must be done for partners and third parties. While popular vulnerabilities such as Heartbleed and Poodle are highly publicized, third parties may have other, less high-profile points of weakness. For example, SPF records may not exist, or they may have too many hosts. In addition, DKIM records may have low levels of encryption - or worse, they may be expired.

In addition, security leadership changes as CISOs and senior IT professionals leave organizations. Monitoring security is vital to maintaining trust even when business relationships change.

Reporting to the Board

Frequent assessments of vendor security performance will allow for confident reporting to the board. An audit, penetration test, or vulnerability scan performed 6 months before a board meeting does not offer an accurate, up-to-date picture of vendor security performance. In addition, it may not be efficient to execute these tests before board meetings. These solutions, combined with continuous monitoring will provide a comprehensive view of vendor security so that you can confidently report to your board about your vendor’s security at any time.

Most IT professionals want to monitor frequently

In a study by BitSight and Forrester, 59% of IT professionals surveyed indicated a desire to monitor third parties, yet only 22% were doing so on at least a monthly basis. Despite such a high number, organizations across all industries struggle to continuously monitor vendors. In a recent survey of 40 banks in New York, roughly one third require vendors to notify them of any breaches to their own networks.

The desire to monitor vendor security performance is rising. However, third party breaches continue to take place on an alarming basis as organizations struggle to implement continuous monitoring solutions. Simply having a program to monitor third party security performance is not enough. Organizations that monitor third parties with greater frequency will increase their ability to mitigate third party risk.

Suggested Posts

Third-Party Risk Management Best Practices for Enterprise

Companies are becoming increasingly reliant on third-party relationships, and cyber attacks originating in the systems of third parties are on the rise.

READ MORE »

Airbus Incident Shines Spotlight on Third-Party Vendor Security Risks

2019 has been a year of high-profile attacks, and, as we predicted, it’s only getting worse. That’s certainly the case for Airbus.

READ MORE »

A Vendor Risk Management Questionnaire Template

IT Risk Assessment Questions for Third Parties

Digital relationships with third-party vendors increase opportunities for growth, but they also increase opportunities for cyberattacks — a recent study found that 61% of U.S. companies said...

READ MORE »

Subscribe to get security news and updates in your inbox.