Page 176 - Cyber Defense eMagazine April 2023

monitoring and reporting obligations. Include these requirements in all vendor contracts and agreements
and conduct regular audits to ensure compliance.

The security requirements should specify the type of data the third-party vendor will have access to and
outline the measures that the vendor should take to safeguard the data. If the third-party vendor handles
personal data or sensitive information, the security requirements should also cover privacy requirements.
These requirements might include compliance with relevant data protection laws, such as GDPR or
CCPA, and implementing appropriate privacy controls to protect sensitive information.

Also, specify the procedures that the third-party vendor needs to follow on the occasion of a security
breach. This includes notification protocols, mitigation measures, and steps to contain and resolve the
incident. Your contract document should also outline the monitoring and reporting obligations that the
third-party vendor must follow. These might include regular security audits, reporting security incidents
or breaches, and regular communication with the business regarding the vendor's security practices.

Keep yourself up to date on your vendors list

Organizations often lose track of the services they use and the data the vendors have access to. It can
be disastrous for your third-party cyber security risk management strategy.

Maintain an accurate vendor list and regularly review their access to data to limit the exposure of sensitive
data to only those who need it. It will reduce the risk of data breaches or leaks and limit unauthorized
access or misuse of sensitive data.

Moreover, you will have more control over your system when you have clear knowledge about your
vendors and their access to data. For example, if a third-party vendor has access to highly sensitive data,
you can implement additional security controls or ask the vendor to deploy a more stringent security
protocol for that particular set of data.

An updated vendor list will also help you respond quickly if a security incident occurs. When you know
who all have access to the data, you can immediately identify the relevant vendor and take appropriate
measures.

Implement continuous monitoring and limit access

Continuous network monitoring is critical for identifying and addressing potential cybersecurity risks in
real time. Continuously monitor your network traffic to spot any irregularities. It will help you quickly
recover if an incident of cyber-attack through a third-party system occurs.

Your team should also continuously monitor the vendors for security risks. The monitoring should include
regular security audits, penetration testing, vulnerability scanning, and ongoing risk assessment. It will
help you evaluate the effectiveness of third-party vendors' security practices and detect any vulnerabilities
and weaknesses in their systems and applications. You can consider hiring third-party auditors to use
their expertise.

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