The Importance of Vendor Management Services

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As cyber threats evolve and become more complex, businesses are forced to find new avenues for warding off potential attacks. Fortunately, getting the extra cyber security that your organization requires can be as simple as partnering with third-party vendors.

Vendors’ technology and services can bring valuable assets that aim to enhance your end users’ experience, making them a vital part of your enterprise’s operations. With that said, protecting your network via these outsourced services can be filled with headaches and hiccups if you fail to effectively manage and monitor your vendors’ activity – and that’s where vendor management services come in. Keep reading to learn about the risks associated with using vendors, the importance of vendor compliance, and why your enterprise should employ vendor management solutions.

The Risks of Using Vendors

While outsourcing some of your services is a great way to cut costs and gain access to knowledge and technology that you wouldn’t have otherwise, it can also pose great risks to your business. A study by the Ponemon Institute showed that 60 percent of U.S. companies have endured a data breach (including accidental and malicious attacks) caused by a vendor or third-party enterprise. The impacts of these breaches include everything from financial penalties to data loss to a loss of sales/customers. Based on a recent survey, it is estimated that, on average, a single organization shares sensitive data with almost 600 third parties. Of those companies surveyed, only 34 percent of them kept a comprehensive inventory of those users. If these numbers aren’t alarming enough as is, you should be aware that of the enterprises that do keep an inventory, only a small percentage of them likely manage the risks posed by their outsourced vendors – yikes.

Vendor Compliance

You probably are already aware that your company needs to be in compliance with certain industry regulations (such as HIPAA, PCI, etc.). However, being truly compliant means that you must ensure all of your vendors are also following these laws. Failing to do so could result in penalties, fines, revocation of licenses or certifications, and so on. The easiest and most effective way to mitigate this risk is to implement a good vendor management program.  

Employing Vendor Management Services

Operating without a vendor management program can leave you in the dark when it comes to what your vendors are doing within your network and systems. Factors like underlying security flaws from outdated software, ISP outages, and application glitches can all negatively impact your business. Luckily, with a solid vendor management solution in place, you can better manage the third-party companies you have partnered with to keep things running smoothly (and fix any issues promptly when they do come up).

With the help of Contigo’s vendor management services, you can avoid devastating data breaches, compliance issues, and even everyday IT problems. Vendor management requires continuous engagement with your technology vendors to ensure that upgrades are properly installed, application glitches are resolved, and ISP outages are promptly remedied. Let us take the stress out of managing your third-party vendors by contacting us today.