Darren Argyle, Global Chief Information Security Officer (CISO) for Markit
The use of third parties is unavoidable in today’s global economy. The growing use of third party suppliers and business partners, whilst bringing significant business advantages, also exposes organisations to substantial risk, such as financial loss, reputational damage, regulatory prosecution and fines from major breaches of security. In the last few years we’ve witnessed many of these risks being realised; examples have included major breaches of security and costs to recover escalating into millions of dollars, as a result of the third party supplier being comprised. Changes in regulation, the evolving threat landscape and policy changes globally further complicate matters, generating further risk and expense for business.
Despite considerable efforts from many industries to address these issues, it remains difficult to manage. As well as the risks described, companies perceived as the ‘weakest link’ in the supply chain could end up not having third party contracts renewed. These challenges are discussed in more detail, and some suggestions put forward to help tackle the increasing burden on teams and risk mitigation strategies.