How Continuous Monitoring Revolutionizes Third-Party Risk Management

Comprehensive, continuous monitoring of vendor risks holds immense significance for organizations across various departments and functions. It empowers compliance teams to identify potential risks and vulnerabilities, enables risk managers to proactively address operational, financial, and reputational risks, and streamlines procurement processes. Organizations that make continuous monitoring of critical vendors a part of their holistic and life-cycle based risk management program more frequently achieve business objectives. Many firms now offer risk intelligence products designed to help third-party risk teams and their organizations stay one step ahead of new and emerging vendor risks.

That means you will achieve efficiency and have more time to focus on vendors crucial to your organization and nurture safer and better relationships. BNM360 is the most comprehensive platform for automating the global network and custodian monitoring process. BNM360 includes modules for complete automation of the DDQ and RFP process, managing the centralized agent bank and account database, automated workflows for account opening and the account recertification process. In addition to automated workflows, BNM360 provides centralized document repositories, issue management, powerful analytics and easy-to-use portals for agent banks. Download our vendor portfolio risk report sample to get an exclusive look at the actionable reporting capabilities third party risk management teams can use to reduce critical portfolio risk. Traditionally security teams have tried to understand the ongoing risk posed by their vendors by using annual assessments.

What Are Third-Party Risks?

When the value of the relationship is not as expected, your organization can lose money, waste resources, and suffer reputational damage, regulatory actions, or fines. Ongoing monitoring is necessary to confirm the value and output of vendor relationships and to protect the organization and its customers from unnecessary risks. Also, depending on your business growth, your third-party vendors could increase into the hundreds and even thousands.

Cyber threats are one of the most significant forms of third-party risk, potentially leading to data breaches that can impact a company’s finances, operations, reputation, and compliance efforts. Many companies fall prey to this third-party risk by wrongly assuming that their vendors have effective cybersecurity programs in place. Based on externally observable data, security ratings offer an outside-in approach to continuous controls monitoring that requires no access to a vendor’s internal systems. With a superior security ratings solution, you gain continuous visibility into the security posture of your vendors, with real-time analysis that lets you identify and remediate risk as it happens. Continuous monitoring technology evaluates your entire vendor pool, so vendor risk teams are picking and choosing which third parties to evaluate and gambling on the rest. Continuous monitoring offers a more effective and secure tool for third-party risk management.

Why Is Ongoing Monitoring So Important?

This includes the entire vendor life-cycle management process, even off-boarding. This is an important concept and practice to put in place during the evaluation of your vendors and the vendor selection process. Cybersecurity – Cybersecurity and cyber risk are hot topics, and with good reason. The dangers are real, including data breaches, ransomware, phishing, vishing, social engineering, bugs, and viruses. Third parties can often make your organization more vulnerable to cybersecurity threats.

Bitsight analytics address peer comparison, digital risk exposure, predicting future performance, and other important cyber risk challenges. Every remote OT asset or facility that is connected to a https://www.globalcloudteam.com/top-trends-in-product-development-in-2022/ broader network or the internet becomes a potential vector for cyber threats. Old infrastructure, legacy technology, and unsupported devices are not immune to cyber threats and must be protected.

Why Customers Trust Bitsight

For example, automation of vendor lifecycle risk management helps organizations stay on top of even the most sophisticated and new supply chain attacks. It allows you to identify, assess, monitor, and mitigate the evolving risks. Automation improves vendor security not at a particular point in time but all through the relationship lifecycle. Third-party risk encompasses the threats to a company posed by vendors and organizations in its supply chain that are connected to its network data.

And, after the initial work is done, some organizations only check up on their vendors during the annual review cycle. Developing a solid vendor lifecycle risk management program does not impede your relationship with your vendors and suppliers. In fact, it strengthens the relationship by allowing you to establish working relationships with parties that provide excellent results with minimum risks to your organization. Consequently, it’s no wonder that your security leaders and vendor risk managers are constantly seeking new ways to improve third-party and IT vendor risk management. With the Bitsight for Third-Party Risk Management platform, users can gain access to their vendors’ cybersecurity ratings to enable continuous monitoring.

Third Party Risk Management

Effective cybersecurity depends on providing front line operators the required information to act quickly when potential threats are in motion… Reputation – Bad news about your vendor can easily impact your organization’s reputation and brand. Today, news sources publish millions of pieces of information every day.

• Some items to review might include audited financial statements and a list of your vendor’s critical subcontractors.
• Holistic – In addition to monitoring each risk domain individually, it may be beneficial to take a holistic view of the entire vendor risk profile.
• The solution eliminates noise, controls false-positive events, and dramatically reduces alert fatigue so that security teams can do more with less in fewer cycles, resulting in better and faster security.
• As a result, companies need to take responsibility for managing their security and risk with the partners they choose, but current methods for managing that risk are inefficient.

Your reputation can be damaged irrevocably, financial losses can be huge, and legal liability may be hard to transfer to your vendor. Venmonitor™ is a new software tool that brings the industry’s best risk intelligence data into one central location, allowing you to easily screen vendor or supplier performance across multiple risk https://www.globalcloudteam.com/ domains. The smartest organizations consider the potential damages a single bad vendor can cause. However, if you’re still on the fence regarding risk intelligence, here are three compelling reasons to consider using vendor risk intelligence. It can’t be overstated that not all risk intelligence providers are created equal.

Continuous Monitoring

The security posture of every organization in your supply chain may vary daily or weekly as new cyber threats appear. By implementing a continuous vendor monitoring system into your TPRM program, you can enable your business to handle an expanding pool of vendors without worrying about using more resources. Maintaining a constant view of your vendors’ cybersecurity will allow you to get ahead of malicious actors before they can access your company data through your vendors’ platform. While it’s convenient for the security manager to distribute a unified assessment at a designated time during the vendor lifecycle, this approach only presents a snapshot of your vendors’ cybersecurity health. Organizations engage third-party vendors to help realize an opportunity or to solve a problem. If a vendor has poor performance or is too risky, the value of that relationship declines.

This framework presents the essential requirements, standards, and best approaches for spelling out controls and managing vendor relationships. The good news is that the existing, publically available resources are enough to develop a framework for comprehensive and continuous vendor risk monitoring. Due diligence teams save valuable time by reducing manual reviews of assessments, questionnaires and other documents, so they may focus on higher risk items and take immediate action.

Vendor Risk Management: Addressing Vendor Risks

Based on the results of your vendor security risk assessment, you can decide whether the relationship should continue. If you don’t have unlimited resources, consider how you can streamline the process of identifying and monitoring risks. Doing so will help ensure that your vendor risk profiles remain accurate with up-to-date information. Vendor risk intelligence tools and services into your monitoring process. In this blog, we’ll explore why ongoing monitoring is necessary to monitor your vendor’s performance and to identify new or emerging risks.