Exposure: Managing Third-Party Risk in a Digital World
Digital Transformation is creating new opportunities, while introducing new challenges.
Public and private enterprises alike are under pressure to discover better ways of doing things; better ways to improve efficiency, reduce costs, grow revenue and accelerate the delivery of their unique value to their customers.
A very popular trend that organizations can take to accomplish these objectives is to outsource business processes and functions and in today’s digital world, that typically means digital transformation and a move to the power and savings of the cloud.
But moving to the cloud also means putting parts of your value chain into the hands of a vendor and, by extension, that vendor’s vendors. This not only exposes your organization to the operational, financial, reputational, legal and regulatory risks that exist within those third-, fourth- and nth party organizations, but also increases your organizations’ cyber risk landscape beyond your internal infrastructure. And your organization remains accountable to your stakeholders and constituents for harm that arises as a result of your partners failure to manage their risk.
As a matter of good governance, any organization that operates in the digital world – and today, very few do not – needs a way to understand the risks involved and a way to manage them. A robust Third-Party Risk Management (TPRM) program provides both and can help speed your digital transformation.