In today’s world we seem to be so taken by the idea of risk management only being inside a company’s system in terms of its software and in terms of how good a company can be security-wise we seem to often forget that even if a company has an entirely offline presence we cannot ignore the importance of third-party risks.
If someone was to ask why third-party risks are so incredibly important in today’s market, my answer would be that they are so important because of the mere fact that in today’s market all businesses, even if they weren’t sharing the same industry, share the same contacts, information, business ties and links.
Everything in today’s market is linked together, everything in today’s market is connected. When we see an error occur in a specific business in one industry we are more often than not able to see the effect of this specific error in companies of industries that may seem so far off than the industry we initially started with.
It is because of this that in today’s IT security field, the space of IT cyber security, the role of the TPRM or third party risk management manager has such an important claim in any business. What I would have liked to say is that a TPRM manager is essential in any online-based business but that would simply be false.
A TPRM manager in today’s world and in today’s market, is essential to any business regardless of being online or offline. TPRM is crucial to every business because it evaluates all the risks that a business has that aren’t internal and more often than not it’s the risks that aren’t internal that are the most deadly or risky or dangerous to a business.
To discuss why it is so crucial that external links and connections are studied, we should take a look at the fact that some business, even huge businesses like Microsoft or the big four accounting firms in the UK or even companies that are giants in other Industries, like Amazon, usually associate themselves with companies that do not have the same Financial budgeting power. What this basically means is that sometimes companies with strong reputation associate themselves with lower end companies, usually to cut costs. For example
What this basically means is that sometimes companies with strong reputation associate themselves with lower end companies, usually to cut costs.
For example, Nike, when it associated itself with the sweatshops in the developing countries in the Far East and in South Asia, took on a severely dangerous amount of risk that essentially and ultimately ended up causing immense damage to the brand’s reputation as well as its finances. Just like Nike, many companies sometimes have ties with other companies that might not even have the same strength in terms of its cyber security, leaving the larger companies at a huge risk of being under threat if the smaller companies were to be hacked into.
While cybersecurity is a large field that deserves a lot more study, we should always bear in mind that the search for a perfect and completely secure, in terms of cyber secure, company, never ends internally, which is essentially the moral of the story. Invest in third party risk management, even if you believe you don’t need it because just like all the other companies in the past that have fallen victim to cyber security attacks from external factors that had nothing to do with the internal softwares of the company, your company might also have a moment where you feel you would have been better off safe than sorry.
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DFGR is a specialist Recruitment & Executive Search firm that solely focuses in the Digital Forensics & Cyber Security, IT Risk, Intelligence Insights & Analytics and Corporate Investigations space.