Vendor management is a crucial component in safeguarding company cybersecurity. As businesses increasingly rely on various external services and products, ensuring these external partners uphold strong security standards becomes imperative. I've found that the rapid progression of technology in the cyberspace, companies must completely understand each vendor with access to transmit or store end-user data.
For instance, in 2017, NotPetya malware spread via a Ukrainian accounting software company called M.E.Doc. The malware spread to other companies that used M.E.Doc's software, including Maersk, a global shipping company. The attack caused Maersk to shut down its IT systems for several days,The absence of continuous vendor monitoring can lead to missed vulnerabilities and escalating risks.
For example, intrusion detection is only good after the fact; it doesn't protect a company from risk. With 4,145 data breaches at, the financial impact of the 59% caused by third-party vendors in 2022 was $22.9 billion. Companies struggle to keep pace with evolving cyber threats, which can lead to non-compliance with regulatory frameworks and compromise their security posture further.
Vigilant vendor management is vital to maintain a secure business environment. The primary risk lies in how people understand and handle their data. This understanding extends to vendor management, where the real challenge is ensuring that every vendor involved in the company's operations maintains a high security standard.
I find it critical that companies have a proactive approach that focuses on intrusion prevention and comprehensive employee training. Understanding vendors' capabilities and continuously monitoring their security postures is vital for fostering a security culture that permeates every aspect of the business, ultimately safeguarding the company's future.