Third-Party Risk Management in the Age of Supply Chain Attacks

The Growing Threat

Supply chain attacks have become increasingly common, with attackers targeting vendors and service providers to gain access to their customers' systems. These attacks can have devastating consequences, as demonstrated by incidents like SolarWinds and Kaseya.

# Understanding Third-Party Risks

Third-party risks can manifest in several ways:

• Vendor data breaches that expose your data
• Compromised software or hardware from suppliers
• Weak security controls at vendor facilities
• Insufficient vendor security practices
• Supply chain disruptions affecting operations

# Risk Assessment Framework

1. Identify Critical Vendors: Determine which vendors have access to sensitive data or critical systems
2. Assess Security Posture: Evaluate vendor security controls, certifications, and practices
3. Review Contracts: Ensure contracts include security requirements and breach notification clauses
4. Monitor Continuously: Regularly review vendor security posture and incident history
5. Plan for Incidents: Develop response plans for vendor-related security incidents

# Best Practices

• Conduct thorough due diligence before engaging vendors
• Require security certifications (SOC 2, ISO 27001, etc.)
• Include security requirements in contracts
• Limit vendor access to only what's necessary
• Monitor vendor security continuously
• Have incident response plans for vendor breaches
• Maintain a vendor risk register

# Conclusion

Third-party risk management is no longer optional. Organizations must implement comprehensive vendor risk management programs to protect themselves from supply chain attacks and vendor-related security incidents.