22.4.3. Third-Party Risk Assessment

22.4 Security Policies

Third-Party Risk Assessment

- Third parties = major source of privacy and security risks.

- Companies are still accountable for third-party breaches.

- Many breaches happen due to third-party weaknesses.

Third-Party Risk

• Security and privacy risks introduced when an organization relies on external vendors or service providers.

TPRM

**Third-Party Risk Management

👉 Checking if vendors/partners are safe to work with (they have access to your data/systems).

Privacy Maturity

"How well a partner protects your data, including their rules, tech, and how they manage risks."

Privacy Audit

"Checking if a partner's privacy rules and tech actually keep your sensitive info safe."

Collective Risk

The total combined risk posed by all third-party vendors to the organization.

Redundant Vendors

"Having too many outside companies doing the same job, which makes security harder and riskier."