Cyber Guardians

Chapter 7Vendor Management and Third-Party Risk

This chapter delves into the critical topic of vendor management and third-party risk in the context of cybersecurity. In today's interconnected business landscape, organizations often rely on third-party vendors and service providers to fulfill various functions. While these partnerships bring many benefits, they also introduce inherent cybersecurity risks. This chapter explores the importance of third-party risk management for board members and outlines best practices for effectively managing and mitigating third-party cyber risks.

The chapter begins by emphasizing the significance of third-party risk management for board members. Board members play a crucial role in overseeing the organization's cybersecurity efforts, and third-party risk management is an essential aspect of this responsibility. By understanding the potential risks associated with third-party relationships, board members can ensure that adequate controls and safeguards are in place to protect the organization's sensitive data and critical systems.

Next, the chapter delves into best practices for managing third-party cyber risks. It highlights the importance of establishing a robust vendor management program that includes comprehensive due diligence processes, contractual obligations, and ongoing monitoring and assessment of third-party vendors. The chapter provides insights into key areas of focus, such as vendor selection, contract negotiation, security assessments, ...