How to Build a Third-Party Risk Management Program

Every business works with vendors, suppliers, and other third parties to get things done. But these relationships come with risks—especially when it comes to cybersecurity. If a vendor gets breached, your data or systems could be exposed. This is why third-party risk management (TPRM) matters.

What Is Third-Party Risk Management?

TPRM is a process for identifying, assessing, and managing risks tied to vendors. It starts with knowing who your vendors are, what systems and data they have access to, and how secure they are. From there, it’s about understanding the security controls being used, monitoring changes in their security risk scores, and responding quickly to identified issues such as a large drop in risk score, data loss, or breach notifications.

Why TPRM Requires the Right Tools

As Michael Caruso explains, “Using tools like Bitsight is invaluable for streamlining third-party risk management programs. Over the last couple of years, I’ve worked with Access Point helping organizations enhance their vendor risk management programs by leveraging this tool to automate monitoring and improve security outcomes.”

According to Caruso, Bitsight plays a critical role by:

• Automating vendor risk monitoring
• Providing actionable on risks affecting security ratings
• Enabling collaboration with vendors to help improve their security practices

These capabilities allow organizations to identify and address risks before they escalate, maintaining compliance and protecting critical data.

The Core of a TPRM Program

A solid TPRM program has four key steps:

1. Planning & Risk Assessment: Identify why you’re working with a vendor and what risks come with the relationship by understanding the data they handle and the level of access they require.
2. Due Diligence: Review their security practices and ensure they meet your standards. This can include measuring their controls against frameworks like NIST SP 800-53 or custom security requirements.
3. Contracting: Add security requirements to contracts, such as breach notification clauses and the right to audit their practices.
4. Continuous Monitoring: Keep an eye on your vendors with tools like Bitsight, which provide security ratings, alerts for risks, and insights into their overall cybersecurity posture.

Collaboration Leads to Better Results

Improving vendor security isn’t just about checking boxes. It’s about working with vendors to help them meet your standards. Bitsight enables organizations to share security ratings and provide actionable feedback. One organization using Bitsight improved the security of over half its vendors in six months by collaborating on key issues.

Take Action

If you’re ready to get started with your TPRM program but need guidance, Access Point Consulting is here to help. We take a hands-on approach to implementation, working with you every step of the way to ensure your program is successfully designed, implemented, and fully operational.

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