Due Diligence

Due diligence has always been important, but new developments emphasize this fact. As the professional climate evolves, businesses rely on contractors and private vendors more than ever. While these third-party companies can offer convenience, you should exercise care. Doing so allows you to minimize the risk of cyber security attacks and other breaches. It’s important to exercise this due diligence, as you can be liable for compromised information.

Explaining Due Diligence

Let us define “due diligence” for you in the context of security. In the field of cybersecurity and business intelligence, it’s doing your homework on your vendors. You have to be aware of their cybersecurity risks and handle them after identifying them. You might run through a checklist for new vendors or fill out an assessment. However, is this the best approach? Risk assessments can be time-consuming and expensive.

Even at their best many organizations will treat these assessments as “set and forget” – That is, a permanent understanding. Unfortunately, this line of thinking can introduce cracks in your security that you might otherwise catch. In addition, a single assessment doesn’t account for changing risks and policies.

How can you keep your due diligence up to date, then? Here are some of the best practices.

How to Assess Third Party Vendors

Appraise their Cyber health Status

Cyberhealth is an aggregate of how safe an organization is with its information. Do they use repeated passwords? Are their devices secure and encrypted? Have their employees’ received internal threat training? Checking their overall attitude toward cybersecurity can reveal places they are lacking. You should also measure these positions against industry standards.

Establish a Framework

Using a cybersecurity management platform, you can track your vendors and their network. As a result, your security teams can manage risks more effectively by quantifying where they’re at. You can also give your vendors a cybersecurity framework to help them mitigate risks autonomously. The NIST Framework is a great starting point, allowing organizations to identify and respond to threats quickly.

Keep Monitoring Your Vendors

While it is important to establish new security practices, you should be careful when adding networks together. The addition of a new, less secure network can create a security hole that didn’t exist before. In addition, because the nature of threats keeps evolving, you must stay current and ensure your vendors do the same. Monitoring will help you maintain compliance with your standards.

Continue to Identify New Vulnerabilities

The due diligence process should identify both threats and areas needing improvement. These areas should never be left to chance or left alone. Help establish your standard by having the vendor take steps to mitigate these risks. There is always more that can be done, and the scope of your defense depends on your specific needs. Anti-malware software, software updates, data encryption, and multi-factor authentication are all useful tools.

Conclusion for Due Dilligence

Arruda Group provides expert risk mitigation services. So whether you’re considering signing on with a new third party or already working together, let us help. With so many companies relying on remote work these days, due diligence is more important than ever. After all, no matter how good your security program is, it only takes one breach to undo everything.