How many vendors do you have? Many organizations have thousands of vendors. Exposure to third-party cyber risk is one of the biggest threats resulting from these close relationships.
Third party risk is an important concern for Governance, Risk, and Compliance executives. Every organization depends upon a vast ecosystem of partners, suppliers, contractors, and other third parties for its day-to-day operation. Each presents a potential risk to the organization.
- Strategic risk – results from adverse business decisions
- Operational risk – the risk of loss from failed processes, technology, or people
- Reputation risk –from negative public opinion
- Transaction risk – problems with products and services
- Credit risk – third parties not paying their bills on time
- Compliance risk –not following laws, rules, or regulations
Cybersecurity risk is not a risk category separate from the ones listed above. All of the third-party risks on the list might be cybersecurity risks, especially as organizations proceed with their digital transformation efforts.
Your vendors come with a broad and often un-validated set of cybersecurity vulnerabilities. Often, these vendors are less regulated, and many have underinvested in cyber risk reduction capabilities. Their cybersecurity weaknesses can directly affect the cybersecurity capabilities of your organization. It is an ongoing struggle to get ahead of these exceptions and find a way to identify and reduce this considerable source of cyber risk.
PeriCertum brings a systematic, process-driven approach powered by Thrivaca™ TPM (an Arx Nimbus product) to sense, measure and analyze these critical risks. We gather and analyze vendor capabilities against each of the relevant regulatory frameworks, then define scoring against these accepted standards using a proprietary risk algorithm. Going beyond conventional external Internet scans, we assemble a multi-dimensional profile of cyber risk drivers and apply recognized cybersecurity standards to drive to a sophisticated probability model. Thrico scores are not a function of the “professional judgement” or “expert opinion” of individuals because the results use actuarially-oriented risk models, regulator-mandated standards, and recognized audit controls.
Our process and tools provide…
- Effective, data-based Third-Party Risk Scoring
- Comparison of your Partners’ risk scores
- Results in terms all can understand
- Insights based on prevailing regulatory frameworks and accepted controls
- Proper quantitative analytics, not just external scans of vendor Websites
- Quickly deploy to hundreds or thousands of Partners
- Make it easy for your Partners