You Can’t Outsource Risk: Rethinking Third-Party Cybersecurity
Today’s organizations are more connected than ever, and that connectivity comes with hidden risk. Every vendor you onboard, every service you integrate, and every platform you rely on extends your attack surface. And while partnerships can accelerate business, they can also expose you to breaches, data loss, and regulatory fallout if not properly managed.
Third-party risk isn’t just an IT problem. It’s a business liability. Here’s how smart companies are getting proactive about it.
Due Diligence Isn’t a One-Time Event
It’s no longer enough to collect a SOC 2 report and move on. Real vendor risk management means continuously evaluating whether your third parties are still meeting your security, privacy, and compliance standards.
“Too many companies treat third-party onboarding like a checklist. But risks evolve. Controls degrade. And business relationships change.”
— Paul Interval, Director of vCISO Services, Echelon Risk + Cyber
Just because a vendor was secure at contract signing doesn’t mean they’re secure today. Ongoing risk monitoring - built into your lifecycle - is essential.
Risk Lives in the Gaps
One of the most overlooked areas of third-party risk? Internal assumptions.
If security, procurement, and legal aren’t aligned on vendor review processes, it creates gaps and gaps create vulnerabilities. Clear ownership, shared documentation, and risk-based prioritization are key to reducing that fragmentation.
“You need to understand the impact a third-party has on your business, not just their technical controls.”
- Shir Butbul, GRC Manager, Echelon Risk + Cyber
Not every vendor needs the same level of scrutiny, but every vendor needs to go through a process.
TPRM Should Be Built to Scale
As your vendor ecosystem grows, spreadsheets and ad-hoc reviews just won’t cut it. Leading organizations are shifting to formal TPRM programs that:
Classify vendors based on risk tiers
Automate intake and review workflows
Include contractual language for security expectations
Incorporate annual or semiannual reassessments
These programs don’t just protect - they create leverage during renewals, audits, and security negotiations.
Risk Management Starts with Visibility
You can’t manage what you don’t track. That’s why visibility is the foundation of any solid TPRM strategy. Start by mapping your third parties, understanding what data they access, and assessing their operational dependencies.
Once you have that, build repeatable processes for onboarding, assessing, and monitoring those relationships - not just for compliance, but for resilience.
Get Ahead of Vendor Risk Before It Becomes Business Risk
Third-party incidents aren’t slowing down, and regulators are paying attention. Whether you’re facing pressure from regulators, customers, or your own board, now’s the time to elevate your TPRM program from reactive to resilient.
At Echelon, we help companies design and operationalize risk-based third-party management programs that scale with your business and keep your extended ecosystem secure.
Want to hear how our experts break it down?
Watch the full webinar on demand for practical insights, strategies, and tools to strengthen your vendor risk management.