Supplier (Vendor) risk assessment is often overlooked in the bigger picture of things! However, active supplier assessments are a very important aspect of good enterprise management to mitigate risk and create a healthy business ecosystem. Risk assessments are extremely critical when suppliers are likely to handle important functions of your business functions. This includes accessing vital or sensitive enterprise data or customer interaction.
Business should always conduct a thorough supplier risk assessment before onboarding a new supplier. For existing suppliers, there is a need to conduct regular quality and security audits to ensure that they are functioning with integrity and efficiency. Suppliers play a critical role in a company’s ecosystem. But a chain is only as strong as its’ weakest link. If a supplier has a compromised threat management system, this creates risk throughout the ecosystem.
Any participant in the supply chain of your business providing products or services to your clients but is not on the direct payroll is a 3rd party supplier!
The following is the checklist for supplier risk management:
The suppliers introduce your organization to a large number of potential threats which the organization is not familiar with. Hence, the immunity level of an enterprise needs to encompass these threats to protect the company from prospective threats.
The possible consequences are:
Suppliers handling sensitive business information are the biggest threat for your enterprise. A robust internal security framework may not safeguard your business if the 3rd Party Supplier has a flawed security environment.
A strong Supplier Risk Management Program ensures standardization of the supplier onboarding process, evaluation, identification, risk management, risk monitoring and risk forecasting
The broader picture would look like:
ITPN offers advisory, consulting, and wide range of services, products, and certified IT security professionals, with pioneering expertise and rare experience to help our client's safeguard their critical assets (Infrastructure, Data, Identity & Access Management, Applications, and other Assets) by identifying, protecting, managing and adequately responding to security threats and incidents.