If data breaches were a film genre, third-party cyber-risk would be the talk of producers and casting agents; it’s where the money is. Like a relentless killer who cannot seem to be destroyed, third-party breach scenarios dominate the headlines. The scares are all different — compromised health records, weapons designs, or automakers’ trade secrets — but the plot is the same: leaked and stolen files via compromised contractors, supply chains, or business partners.
From my vantage point counseling senior executives on cyber-risk management, it is easy to see why the ephemeral specter of third-party cyber-risk haunts the C-suite. It’s because when you’re operating in your company’s own familiar environment, you often miss the warning signs of danger lurking — until something hits you. Leaders complain they can spend untold sums and time ratcheting down their company’s internal security measures only to see their data and reputation suffer the consequences of errors and carelessness at other companies, seemingly out of their control.
Let’s break down a few third-party…
