Most businesses today depend on third-party partners. These partners could provide products, services or even expertise that help keep your business running and reach your goals. But sometimes, these relationships get tested when a data mishap or a cybersecurity incident at the vendor end snowballs into a major issue for you.

That’s why it’s important to understand how third-party risks can impact not just your business operations, finances or brand but also your business’s future.  In this blog, we’ll discuss the key third-party risks that can make you vulnerable and share best practices for building a resilient third-party risk management strategy.

How third parties compromise your security?

Your partners can sometimes expose you to unexpected risks. So, knowing where these vulnerabilities stem from makes it easier to protect your business.

Here are some of the most common third-party risks that can compromise your business:

Third-party access:  At times, you’ll have to give your third-party partner access to your sensitive data or systems. If the partner experiences a data breach, your data could be exposed, turning your business into a victim.

Weak vendor security: When you partner with a third party, they, by default, become part of your supply chain. If they don’t have adequate security measures, your risk increases, especially if they have indirect access to your critical information.

Hidden technology risks: A security flaw in third-party software or pre-installed malware in hardware can leave your business vulnerable to external threats. Attackers can exploit the compromised software or hardware to launch an attack on your systems.

Data in external hands: Many businesses today entrust their data to third-party storage providers. Even though this makes for a good business decision, don’t overlook the fact that this decision also comes with its share of risks, as a breach at the provider end can compromise your data as well.