In today’s connected world, many corporations and businesses engage third-party providers for technology transactions. This can, however, pose significant cybersecurity risks. Mayer Brown, in their Tech Talks Podcast, noted that in fact, most companies have likely experienced a third-party incident at some point.
According to Justin Herring and Adam Hickey of Mayer Brown – Tech Talks Podcast, an effective way to manage such risks involves understanding the life cycle of a technology vendor relationship, which includes due diligence, contract formulation, and continuous management of the relationship.
Conducting adequate diligence and crafting bulletproof contracts are pivotal to these vendor relationships. Diligence refers to robustly investigating the potential third-party provider’s cybersecurity measures, their past record, and other security aspects. Similarly, contracts should explicitly outline the obligations relative to cybersecurity that any vendor must take on. This can involve setting terms about access to data, response measures in the event of a breach, and regularly updating security measures.
A critical component in minimizing risk also lies in the ongoing management of these vendor relationships. Companies are encouraged to maintain consistent communication and oversight. This includes making certain that vendors are fulfilling their contractual obligations and keeping abreast of any changes in the vendor’s measures that could effect the company’s data or systems.
Planning, preparation, and vigilance are paramount for companies looking to minimize third-party cybersecurity risks. As technology continues to evolve and integrate more deeply into daily business operations, the need to address and prepare for such risks becomes progressively more crucial.