Do you operate in a complex supply chain or have multiple service providers? Is your organisation subject to the Security of Critical Infrastructure Act? Do you need to reduce the backlog of unmanaged risk? These are some signs you need an outsourced third-party risk management (TPRM) assessment to safeguard your enterprise’s survival.
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Understand the exposure to cyber breaches in your supply chain with a third-party risk management (TPRM) assessment.
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Understand the exposure to cyber breaches in your supply chain with a third-party risk management (TPRM) assessment.
Today, enterprises strive to stay ahead of the game by leveraging the expertise of managed service providers and software-as-a-service (SaaS) suppliers. While this can unlock new opportunities for growth, these partnerships can expose your organisation to potential risks that could jeopardise revenue, reputation, and expose you to regulatory repercussions.
Unauthorised access via third parties is fast-becoming the most common vector to a data breach, making a third-party risk assessment a key requirement for all digital-led organisations to maintain digital trust.
While organisations tirelessly strive to fortify their IT networks, they often overlook a peril lurking in the shadows: the intricate web connecting their IT environment to their supply chain of software, service providers, and trading partners. Ignoring the crucial need for a comprehensive third-party assessment leaves your business perilously exposed to the unknown.
Or perhaps, your team understands the need for third party risk management (TPRM) assessments, but without being able to allocate resources to perform them, you are needing to reduce your scope of third parties to assess, assess them less frequently, or reducing the rigour of your assessments.
The consequences of these unmanaged third-party risks are far-reaching, permeating every aspect of your operations and the customers who trust you to provide them an exceptional customer experience.
That’s why getting an initial or annual third-party risk management (TPRM) assessment of your critical third parties from a provider like Avocado, should be your top priority.
Third party risk assessments are a powerful tool to protect your enterprise’s high-risk, valuable assets and systems. By proactively identifying risks, ensuring compliance, and safeguarding your sensitive information, you can confidently onboard services and software-as-a-service while minimising potential threats.
Read our FAQs for TPRM and case study below to understand how Avocado can help you understand your exposure to supply-chain risk with a third-party risk assessment, or book a consultation today!
Further Reading
The recent MediSecure health data breach, traced to a third-party vendor, highlights the critical need for improved third-party risk management, especially following the Australian Privacy Commissioner’s warning about third-party vulnerabilities. Read our blog to learn how organisations can effectively respond to this growing threat.
Reinventing and securing the omni-channel customer experience - a case study
Read the case study“"Avocado was a trusted adviser and highly responsive business partner throughout the transition.”
We partnered with an ASX listed leading global retail industry player to manage all third-party risk and security assessments as they transformed from bricks and mortar to a full multi-channel strategy with deep customer experience tooling. Our scope included assessing the customer platforms and multi-channel architecture, right through to executing on every third-party SaaS component to build out the capability.”
A global ASX listed retail industry playerServices provided: Cyber strategy & architecture, Audit & Assessment, Cyber Resilience Uplift, Security Solutions
When would I need a third-party risk assessment?
- Your organisation is undergoing digital transformation, and you aim to proactively stay ahead in the rapidly evolving landscape.
- You are involved in merger and acquisition activities, which require thorough evaluation of the cyber risks associated with the transaction.
- Whenever your organisation procures third-party software or IT services, it is essential to conduct a risk assessment to ensure security and compliance.
- If your business operates within a complex supply chain or deals with suppliers operating in high-risk environments, a third-party risk assessment becomes crucial to identify and mitigate potential vulnerabilities.
- Your organisation enters contracts with government departments or operates in high-risk industries, emphasising the need for comprehensive risk assessments to meet regulatory requirements and safeguard against potential threats.
Who should be undertaking a TPRM assessment?
If you have an extensive supply chain and insufficiently managed third party cyber risk, you need help from an experienced third-party assessor like Avocado.
Significantly, all critical infrastructure industry sectors – communications, data processing, energy, financial services, health care, food, education, space, transport, and water should have a robust risk management framework including managing their third party risks.
Government sector agencies that need to ensure a consistent management of third parties across their cluster should be scaling their third party risk assessment capability as a priority.
How often should I conduct a TPRM Assessment?
A third party risk assessment should be conducted annually and at contract renewal for all medium and high risk third-parties.
Are all TPRM assessments created equal?
No – Third-party assessments are increasingly becoming standardised and generic. They often lack the utilisation of cutting-edge technology and can drag on for months to complete. In some cases, under-resourced teams treat them as mere checkbox exercises or limit the scope to a subjective list of the most critical suppliers.
To maintain the thoroughness of your assessments and adopt a risk-based approach, it is crucial to conduct third-party risk and cybersecurity assessments for all suppliers and Software-as-a-Service (SaaS) procurements. We can partner directly with customer experience teams to provide a turnkey service with minimal cyber team review required and a deeper- service offering.
Is there a cost-benefit to outsourcing a TPRM Service?
Avocado offers a cost-effective solution to save your in-house team a significant amount of money. We achieve this by addressing your backlog of unmanaged risk, which may include assessing numerous suppliers. By relieving your team of this task, they can focus on strategic cyber priorities and risk management remediation activities.
Avocado specialises in delivering high-volume, low-cost burst capability, eliminating the need for an in-house cyber GRC resource to be available on demand for urgent assessments. Alternatively, we offer a managed service at a fixed cost.
Avocado’s Third-Party Risk Management (TPRM) Services combine cutting-edge technology with expert consultants to ensure frequent and robust assessments.
What is the process for a TPRM assessment?
First, we provide the supplier with a questionnaire and request evidence, which may include external audit reports such as ISO 27001, SOC2 Type II, and pen test results. The customer can choose to handle this process independently or engage our services on a time and material basis to assist in gathering and reviewing the evidence.
Next, our team conducts a comprehensive assessment, thoroughly examining the supplier’s security practices and capabilities. We delve beyond the surface level, offering a deeper service offering. We evaluate each identified gap for control effectiveness and assign a risk rating. Additionally, we provide an executive summary that includes recommendations to address the identified gaps and enhance security.
Subsequently, we collaborate with the customer, reviewing the assessment findings and addressing any follow-up questions or concerns they may have. This ensures a clear understanding of the assessment results and allows for clarification or further discussions as needed.
Ultimately, the final outcome of the third-party risk assessment is a comprehensive report that ratifies the supplier’s security measures. The report includes the control effectiveness and risk ratings for each identified gap, empowering the customer with actionable insights and recommendations to strengthen their security posture and mitigate risks associated with third-party engagements.
What are the next steps after a TPRM assessment?
After conducting a third-party risk assessment, several likely next steps can be taken:
- It is important to address and close any identified gaps based on the assessment’s recommendations. Additionally, residual risks should be effectively managed, both by maintaining a risk register and considering the overall risk profile of the supplier. Many companies fail to do this, and in such cases, a cyber Governance, Risk, and Compliance (GRC) solution like MyRISK can help manage the outcomes.
- Avocado offers assistance in designing additional controls through their security architects to mitigate any gaps identified in third-party relationships.
- If the evidence provided by the supplier regarding their security measures is insufficient, Avocado can provide penetration testing services to further validate the security of their systems and processes.
- In cases where the supplier’s response to the assessment is inadequate, Avocado can provide external audit capabilities to ensure compliance and address any shortcomings.
Avocado has a full-service capability that can help throughout this process so organisations can effectively manage and mitigate risks associated with their third-party relationships.
