As the year winds down, innovative businesses often reflect on what's gone right - and what needs improvement. Beyond wrapping up projects and planning for next year, one critical task shouldn't be overlooked: managing vendor security risks. Vendors play an essential role in your business's success, but they also present a severe cyber security risk if you don't vet and monitor them effectively, especially if they handle sensitive data.
What's A Vendor Risk?
1. Review Vendor Contracts
Like you,
vendors need to be held accountable for following industry-standard practices
like encryption, secure data storage and incident response protocols. Start
your vendor risk review by checking to see if your contracts have the necessary
security clauses, and make sure your agreements outline these expectations
clearly so you and your vendors know what's at stake.
2. Conduct Vendor Security Audits
If you
haven't done it recently, it's time for a thorough security audit of your
high-risk vendors. This will help you understand if they're implementing strong
cyber security measures, such as multifactor authentication, encryption and
regular system updates. Knowing where your vendors stand gives you a better
handle on your own security.
3. Monitor For Emerging Risks
Cyberthreats
evolve quickly and so do the risks your vendors face. Regular monitoring of
your vendor's security practices, like tracking vulnerabilities or breaches,
will keep you on top of any emerging threats.
4. Update Your Vendor List
Now is a
good time to clean house. Cut ties with vendors who aren't living up to your
security standards and tighten your relationship with those who are proactive
about protecting your data. Consider creating standardized onboarding and
offboarding processes for vendor, too, so old vendors don't have unwarranted
access to your organization.
