Most businesses tend to outsource operations to third-party vendors. The reason for doing this is usually to improve operational efficiency and save money. With third parties gaining access to sensitive customer data and critical systems, businesses need to monitor risks associated with the third-party vendors to mitigate or eliminate any potential threats or damages to the businesses.
Some of the third-party vendor risks that may pose a threat to an organization are:
Organizations are custodians of sensitive Personally Identifiable Information (PII). Usually, there are legal repercussions when sensitive customer information is shared with unauthorized persons. The laws are clear on that. In addition, introducing third parties to an organization may put the company in legal jeopardy if the third-party vendors compromise the user data.
Sometimes, using third parties may put an organization at risk of having its public perception ruined. Third-party vendors may harm a company’s reputation if they engage in practices that violate laws and regulations. If they have interactions that are not in line with the organization’s standards and ethical practices, or if in…
