Third Party Risk Assessment Tools

Third Party Risk Assessment Tools You Need To Know

Learn about the third party risk assessment tools you may use. Moreover, let have short information into it.

Introduction About The Third Party Risk Assessment

Third party risk assessment is the process of analyzing your vendor risk posed. It covers the following of the entire supply chain:

  • vendors
  • service providers
  • suppliers

Moreover, the risk that should be considered here are the following:

  • security risk
  • privacy risk
  • business continuity risk
  • reputational risk

Also, the third party risk assessment is a vital part of the TPRM. It can be handled in-house, by cybersecurity professionals, or by independent security.

Here are the following steps to do your third-party risk assessment:

  • Determining the potential risk that possible result of the third party relationships
  • Evaluating the risk for individual vendors. Base on their importance on the following:
    • to your organizations
    • the access they have to your digital networks
    • the cruciality of the information that they will handle
  • Do the SLAs to ensure the vendors perform as required.
  • Arranging vendors according to their access to your networks, system, and data.
  • Auditing vendors based on their answers to the questionnaire you provided.
  • Continuously observing if there are any changes. Also, if there are changes in industry standards and regulations.

Third Party Risk Assessment Tools

We all know now how crucial part is the third party risk assessment to your company. Moreover, without the right security, procedures, and policies in place risk may occur.

It can be a disastrous situation. Such as facing the following:

  • losing your clients trust
  • you may face penalties
  • reputational damage.

So better secure and follow implementing your risk assessment. Moreover, choose the right tools for your third-party risk assessment. 

Here are some important tools that you should not miss on.

Third Party Risk Assessment Tools: Vendor Inventory

A vendor inventory labels the primary steps of building a risk management program:

  • know who are the vendors that do business with your company.

It can be a small or large company. Moreover, do not think if the company is a small and small risk they can be exempted in this process.

Because a low risk is still a risk. Can bring damage to your company. 

Industry Risk Management Standards

All industry has to acknowledge the best practice that could guide them. The guidance with standard assessments such as the ISO and also the NIST. 

Moreover, there are also many standards that you should be familiar with. Like the following:

  • PCI or DSS
  • CSA Cloud Controls Matrix

The Vendor Management Questionnaires

The Vendor management questionnaire is given to the vendors. Moreover, this is done to make inquiries about how is their security controls and practices.

Usually, these questionnaires are completed before the onboarding of the vendors. And also, these are updated at regular intervals.

The Security Ratings

Security ratings will help your company to view your third party’s cybersecurity posture. On how they will handle the attack surface. 

The Third Party Risk Management Software

So for large companies that partner with many vendors, a strong risk management software is a better idea. Moreover, with this solution, they can focus on the following risk areas, such as:

  • financial
  • regulatory
  • cyber risk
  • environmental

Conclusion

There are many a lot of tools for third party risk assessment. So better make sure to choose the best and will align with your company’s objective and needs.

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