No longer are companies and other organizations solely focused on protecting themselves when it comes to cybersecurity. Instead, they must worry about the dozens, hundreds, or even thousands of vendors that they use along each step of the supply chain. As you might imagine, this has heightened the need for robust cybersecurity measures to be implemented at every step of the process.
There have been several recent high-profile third-party cybersecurity breaches that have underscored the need for enhanced security. Among the cases that you might have heard about include:
- U.S Treasury – The United States Treasury was breached via a third-party software vendor. This breach exposed user workstations as well as some unclassified documents held within this government agency.
- Qantas Airlines – This Australian airline was targeted by a cybersecurity attack that exposed up to six million customer profiles, leaving them vulnerable to identity theft or other malicious activities.
These are just a few of the headline-grabbing hacks that have occurred recently. As you can see, attacks like this can take place in any part of the world, and they can happen even to large-scale companies and government institutions that you might not have expected.
Today, we will look at steps that you can take to vet potential vendors for cybersecurity risks that you will want to know about before agreeing to work with them.
Why Vendor Cybersecurity Matters
Vendors are the weakest link in the cybersecurity chain because you do not have direct control over the policies and procedures that they use. Additionally, the sheer number of vendors in the supply chain can make it challenging to manage them and stay on top of everything. The good news? There are measures that you can take before ever signing up with a new vendor to keep yourself and your data protected.
Specific industries are particularly vulnerable to cybersecurity attacks simply because they hold valuable data that criminals want to gain access to. Such sectors include finance, healthcare, government, and manufacturing. Each of these industries must handle certain pieces of sensitive data to perform their work but holding that data also leaves them vulnerable to threats.
Common Supply Chain Vulnerabilities
Spotting some of the most common supply chain vulnerabilities before you sign a contract with a vendor is an excellent way to steer yourself clear of trouble. When you know what these look like, you can put yourself in a position to identify and avoid working with vendors that may have some of these vulnerabilities present. Here are some of the most common vulnerabilities to watch out for:
- Poor Identity Management – Not verifying that the individual attempting to access a database is indeed who they claim to be can be a significant problem. It might keep the doors open to the wrong types of people gaining access to systems they should never have been allowed to.
- Over-Reliance on Sub-Contractors – Certain aspects of work might need to be subcontracted out, and there is nothing wrong with that. However, leaning too heavily on subcontractors can be a warning sign of potential supply chain vulnerabilities that should be addressed immediately.
- Poor Incident Response Policies – A slow or inadequate incident response following a cyberattack is undoubtedly a sign that the contractor is not taking their responsibilities seriously enough, which is also an issue.
These are the types of signs to look for when considering cybersecurity in the supply chain. They are flashing red signs that something is wrong and that a potential vendor might be far more vulnerable than you had imagined.
Key Steps to Vet Vendors for Cybersecurity
There are specific steps to follow when vetting potential vendors to address any cybersecurity concerns that may arise. Knowing what steps you should take will put you in a position to carry out this process and determine if the vendors you are considering are a good fit for your needs.
Assess Vendor Security Policies & Practices
Consider the various policies that a vendor has in place regarding their cloud security, password protection, and other fundamental elements of cybersecurity. Do they appear to be lax about these things, or do they understand the seriousness of keeping information protected? That is the kind of thing that you should be capable of evaluating as soon as you start to look at what they have to offer.
Review Contractual and Legal Safeguards
Think about the kinds of cybersecurity practices that you want included in any contract that you might draw up. You should have sufficient safeguards within the contract itself, ensuring that you have it written down how you want a vendor to behave in the event of a cybersecurity incident. This takes the liability off your shoulders and places it squarely on the vendor’s back.
Ongoing Monitoring and Risk Management
Setting up cybersecurity precautions is not a one-and-done deal. Instead, you need to carefully review the situation and ensure that your vendors continue to follow the cybersecurity guidelines you have set out for them. This means that you need to perform routine audits of their performance. In fact, you should bring in third-party auditors to review the situation to guarantee that things are being handled properly.
Red Flags to Note
We have already noted some of the things to consider when it comes to the vendors you choose from a cybersecurity perspective. Here are some additional red flags to keep in mind as you review your potential vendor partners:
- Lack of Certifications – Vendors who can’t prove their security abilities via certifications that they have earned should raise a red flag in your mind without a doubt. Always ask them to provide these certifications and prove to you that they can keep you safe.
- Overly Vague – You don’t want to work with a partner who is excessively vague about what they can deliver to you from a security point of view. Ensure you clarify details and document what they can and cannot provide.
- No Previous Track Record – Brand new vendors with no track record of their performance are also a concern. They aren’t providing you with any evidence that they can be trusted to keep your information safe, and that should concern you.
Keep an open mind to the possibility that a vendor you might consider using could have red flags that prompt you to reconsider their suitability. Don’t be afraid to change course if you start noticing red flags.
Contact Yobihouse for More Information About How to Vet Your Vendors
As we mentioned at the beginning, your vendor supply chain is the most vulnerable part of all your processes. Review everything your vendors say about their cybersecurity practices to ensure they align with your needs. You don’t want to become the next victim of a cyberattack, and you don’t have to. For help on how to review and vet every vendor that comes your way, contact us, and our team will guide you through a step-by-step process to ensure you partner only with reliable, trustworthy, and high-quality vendors that meet your specific needs.
