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#Supplier risk manager how to
How does one decide how to proceed with all of that info? Technology can send plenty of bits and bytes to the governance committee, but it can't decide traits like a company's risk appetite, product direction or security budget. The “Wisdom” tier is relegated to experienced personnel who determine what to do with all of that DIK. With C-SCRM, the aspects of DIK can be addressed with technologies (especially those leveraging AI) such as firewalls, spam filtering, EDR and DLP.
“D” is for “Data,” “I” is for “Information,” “K” is for “Knowledge,” and “W” is for “Wisdom.” More specifically, input for C-SCRM is found in the D-I-K tiers. As such, the DIKW model is a handy overview here. Is there any data to show that third-parties are really such a serious risk? According to Verizon's 2019 Insider Threat Report’s “5 Types of Insider Threats,” the 5th type of insider threat is the Feckless Third-Party, described as follows: "Business partners who compromise security through negligence, misuse, or malicious access to or use of an asset."Ĭ-SCRM is based on knowledge. Two primary threats in the increasingly outsourced digital economy are: While it may seem unfair that you have to manage those vulnerabilities, in the end, your customers are relying on you to provide a solid product and service.ĭigital transformation imposes and increases third-party risk. This factor immediately leads to numerous vulnerabilities for which your company is responsible to manage. But if one has a multitude of third parties, then it's inevitable that the total number of suppliers increases exponentially. If a company has a relatively small number of third-party vendors, then there may not be too much more to do than a typical VM program. With C-SCRM, managing and monitoring aren’t optional. What becomes essential in C-SCRM is that the technical aspect of VM gets done and gets done well. What really makes the difference between C-SCRM and any other kind of technical vulnerability management (VM)? There really isn't much difference in the tactics used. (You might wonder, "What happened to the second-party?" Those are your members and customers.) Then measure this complexity with your risk appetite. Your SCRM should involve knowledge of how far, complex and even convoluted your supply chain is. Further still, a vendor to your vendor's vendor is a fifth party, then a sixth party, etc. It also addresses third parties to those third parties (known as “fourth parties”). Cybersecurity Supply Chain Risk Management (C-SCRM) deals with more than protecting an organization from cyber-attacks on third parties.
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