IT Brief New Zealand logo
Technology news for New Zealand's largest enterprises
Story image

New research highlights third party risks facing organisations

By Shannon Williams
Fri 16 Aug 2019
FYI, this story is more than a year old

The standard point-in-time approach to risk management is no longer effective in today's landscape of fast-paced, rapidly changing business relationships, according to new research released this week from Gartner. 

The research identifies iterative approach to third-party risk management for faster engagement, risk identification and remediation. The research found more than eight in 10 organisations discover third-party risks after its due diligence period.

Among organisations that engage third parties to provide business services, 83% identified third-party risks after conducting due diligence and before recertification, Gartner explains.

According to Chris Audet, research director for Gartner’s Legal & Compliance practice, with an increasing number of third parties performing new-in-kind and noncore services for organisations, material risks cannot always be identified prior to the start of a business relationship. 

He says modern risk management must account for ongoing changes in third-party relationships and mitigate risks in an iterative way — that is, on a continual basis, rather than at specified intervals.

“Legal and compliance leaders have relied on a point-in-time approach to third-party risk management, which emphasizes exhaustive upfront due diligence and recertification for risk mitigation,” Audet says.

“Our research shows an iterative approach to third-party risk management is the new imperative for meeting business demands for speed and stakeholder demands for risk mitigation," he explains.
Legacy Approach to Third-Party Risk Management

Audet says due to the changing nature of third-party risk, it has become an increasingly important focus area among legal and compliance leaders in 2019. According to Gartner's data, there are a number of factors that have contributed to this shift:

  • Eighty percent of legal and compliance leaders state that third parties provide new-in-kind technology services for organisations, including startups and business model innovators, rather than incumbent service providers.
  • Two-thirds of legal and compliance leaders find third parties are providing services outside of the company's core business model.
  • Third parties now have greater access to organisational data.
  • There is increasing variability in the maturity of organisations' third-party networks.
  • Third parties are working with an increasing number of their own third parties (fourth and fifth parties).

"With a point-in-time risk management approach, compliance leaders attempt to identify potential third-party risks upfront with extensive due diligence before contracting and again at recertification," says Audet. 

"However, this approach is largely ineffective. Not only does it contribute to longer onboarding and waiting periods, it also fails to capture any risks that may arise due to ongoing changes throughout the relationship," he explains.

Among survey respondents who identified risks post-due diligence, 31% of those risks had a material impact on the business.

“Ninety-two percent of legal and compliance leaders told us that those material risks could not have been identified through due diligence,” adds Audet. “The only way to surface those risks was through actual engagement with the third party and through ongoing risk identification over the course of the third-party relationship.”

An Iterative Approach Improves Risk-Management Outcomes

Gartner data shows that an iterative approach to risk management allows legal and compliance leaders to improve risk and business outcomes in terms of speed to engage, and by remediating and identifying third-party risks before their impacts materialise.

"Organisations that applied an iterative approach experienced almost four times the level of business partner satisfaction with the speed to engage, twice the ability to remediate risks prior to impact and 1.5 times greater ability to identify risks prior to impact," explains Audet.

“An iterative approach will enable legal and compliance leaders to manage their changing and expanding third-party networks, while also satisfying business demands for quicker onboarding,” he says.

Key Risk Management Transitions for Compliance Leaders

For organisations that wish to shift from a point-in-time to an iterative risk management approach, Audet says there are three key steps that legal and compliance leaders should take:

1.   Streamline due diligence requirements to focus on the most critical risks.

2.   Establish internal triggers to monitor for change.

3.   Create controls and incentives to monitor for change.

“To effectively mitigate third-party risks, compliance leaders must streamline their current due diligence processes to focus on critical risks,” says Audet.

“This will eliminate burdensome duplicative process and focus attention on the risks that have the biggest impact on the organisation. But, most importantly, they must build in triggers to monitor for changes that give rise to risk over the course of the relationship," he explains.

Related stories
Top stories
Story image
Microsoft
Microsoft backing Māori and Pacific wāhine in tech industry
A new initiative focused on getting Māori and Pacific wāhine into the tech industry and backed by Microsoft, NZTech and the government is calling for tech companies to get involved.
Story image
Hawaiki Cable
BW Digital completes acquisition of Hawaiki Submarine Cable
BW Digital has completed its full acquisition of Hawaiki Submarine Cable, with all applicable regulatory filings and approvals now received.
Story image
Adyen
Adyen expands partnership with Afterpay as BNPL payments increase
Adyen has expanded its partnership with AfterPay allowing more of Adyen’s merchants in more countries worldwide to use the BNPL provider.
Story image
Ivanti
Ivanti and Lookout bring zero trust security to hybrid work
Ivanti and Lookout have joined forces to help organisations accelerate cloud adoption and mature their zero trust security posture in the everywhere workplace.
Story image
Cybersecurity
ThoughtLab reveals 10 best practices for cybersecurity in 2022
The benchmarking study reveals best practices that can reduce the probability of a material breach and the time it takes to find and respond to those that happen.
Story image
Wireless
SmartCIC, BICS partner to expand wireless service options
SmarCIC has partnered with BICS to increase choice for organisations using fixed wireless services, expanding existing carrier relationships for its CELLSMART division.
Story image
Artificial Intelligence
ANU and Seeing Machines to use AI to improve driver safety
The Australian National University and Seeing Machines have won a grant to develop AI systems monitor human behaviour while driving.
Story image
BeyondTrust
BeyondTrust integrates Password Safe solution with SailPoint
BeyondTrust has announced the integration of BeyondTrust Password Safe with SailPoint identity security offerings.
Story image
Artificial Intelligence
ForgeRock releases Autonomous Access solution powered by AI
ForgeRock has officially introduced ForgeRock Autonomous Access, a new solution that uses AI to prevent identity-based cyber attacks and fraud.
Story image
Mobility
Hands-on review: STM laptop bags
The advent of hybrid working has meant we need laptop bags. We got our hands on two of the most popular laptop bags from STM.
Story image
Power / Energy
SmartCIC report reveals top five 5G carriers in the world
The Global Cellular Performance Survey also found that 5G networks are delivering high download speeds but lagging in upload speeds.
Story image
Artificial Intelligence
Updates from Google Workspace set to ease hybrid working troubles
Google Workspace has announced a variety of new features which will utilise Google AI capabilities to help make hybrid working situations more efficient and effective.
Story image
Kodari Securities (KOSEC)
NFT trends and opportunities: expert reveals all
The NFT market is growing at an exponential rate, with unprecedented liquidity. Here we explore how businesses can profit.
Story image
Application Security
What are the DDoS attack trend predictions for 2022?
Mitigation and recovery are vital to ensuring brand reputation remains solid in the face of a Distributed Denial of Service (DDoS) attack and that business growth and innovation can continue.
Story image
Excel
Could your Excel practices be harming your business?
While Excel has been the de-facto standard for budgeting, planning, and forecasting, is it alone, enough to support organisations in the global marketplace that’s facing rapid changes due to digital transformation?
Story image
Tech job moves
Tech job moves - Datacom, Micro Focus, SnapLogic and VMware
We round up all job appointments from May 6-12, 2022, in one place to keep you updated with the latest from across the tech industries.
Exabeam
Find out how a behavioural analytics-driven approach can transform security operations with the new Exabeam commissioned Forrester study.
Link image
Story image
Cybersecurity
A10 Networks finds over 15 million DDoS weapons in 2021
A10 Networks notes that in the 2H 2021 reporting period, its security research team tracked more than 15.4 million Distributed Denial-of-Service (DDoS) weapons.
Story image
Cybersecurity
HackerOne launches Attack Resistance Management solution
HackerOne has launched Attack Resistance Management - a new category of security solution that targets the root causes of the attack resistance gap. 
Story image
Sustainability
Siemens showcases new automated solutions for data centers
Siemens has implemented new automated solutions and AI in the Baltic region's largest data center, providing insight into the future of data center management.
Darktrace
Threat actors are exploiting weaknesses in interconnected IT/OT ecosystems. Darktrace illuminates your entire business and takes targeted action to stop emerging attacks.
Link image
Story image
Sustainability
Grasping the opportunity to rethink the metrics of a sustainable data centre
A data centre traditionally has two distinct operations teams: the Facility Operations team, and the IT Operations team. Collaboration between them is the key to defining, measuring, and delivering long-term efficiency and sustainability improvements.
Story image
Cybersecurity
Video: 10 Minute IT Jams - An update from IronNet
Michael Ehrlich joins us today to discuss the history of IronNet and the crucial role the company plays in the cyber defence space.
Story image
Collaboration
Is video technology the future of retail?
The way we hunt for and buy products has forever changed with innovative technology designed to take customers from their initial curiosity through to purchase
Booster
Booster Innovation Fund. A fund of Kiwi ingenuity – for Kiwi investors.
Link image
Story image
Cybersecurity
CyberArk launches $30M investment fund to advance security
CyberArk has announced the launch of CyberArk Ventures, a $30 million global investment fund dedicated to advancing the next generation of security disruptors.
Story image
Ransomware
Anniversaries remind us to review identity risks
World Password Day provides a timely reminder for ordinary citizens and organisations to stop and think about the risks associated with digital identities.
Story image
VPN
Palo Alto Networks says ZTNA 1.0 not secure enough
Palo Alto Networks is urging the industry to move to Zero Trust Network Access 2.0 because previous versions have major gaps in security protection.
Story image
Oracle
Prophecy International migrates VMware environment with Oracle Cloud Solution
The Adelaide-based global provider is using the solution to eliminate the need to re-write applications, therefore allowing the company to enhance its business operations.
Story image
Data Center
Preventing downtime costs and damage with Distributed Infrastructure Management
Distributed Infrastructure Management (DIM) can often be a lifeline for many enterprises that work with highly critical ICT infrastructure and power sources.
Story image
Sift
Sift shares crucial advice for preventing serious ATO breaches
Are you or your business struggling with Account Takeover Fraud (ATO)? One of the latest ebooks from Sift can provide readers with the tools and expertise to help launch them into the new era of account security.
Story image
Amazon Web Services / AWS
Databricks strengthens AWS partnership with new Lakehouse offering
Customers will experience faster onboarding and unified account administration to make building a Databricks Lakehouse on AWS easier.
Story image
Phishing
Google reveals new safety and security measures for users
Google's new measures include automatic two step verification, virtual cards and making it easier to remove contact information on Google Search results.
Story image
Ransomware
Zerto unveils updates to ransomware recovery capabilities
"Organisations face increased risks from the volume and sophistication of ransomware attacks prevalent today."
Story image
Jabra
Jabra investigates what makes an ideal hybrid work model
“The way we work has changed forever and the current state of knowledge work requires access to digital platforms and technologies to be successful."
Story image
Microsoft
Avaya expands Microsoft partnership to deliver OneCloud on Azure
The joint technology and go to market agreement will help customers accelerate their digital transformation initiatives in the cloud.
Story image
Remote Working
How organisations can meet employees' changing expectations
The global employment market has shifted dramatically in favour of employees, sparking the so-called great resignation, in which people are leaving unsatisfying roles in search of greener pastures.
Softiron
For every 10PB of storage run on HyperDrive vs. comparable alternatives, an estimated 6,656 tonnes of CO₂ are saved by reduced energy consumption alone over its lifespan. That’s the equivalent of taking nearly 1,500 cars off the road for a year.
Link image
Story image
Power / Energy
Keysight Technologies introduces new next-gen DPT solution
Keysight Technologies has announced its new next-generation Double-Pulse Tester (DPT) with the PD1550A Advanced Dynamic Power Device Analyser.
Story image
Ransomware
Cybersecurity starts with education
In 2021, 80% of Australian organisations responding to the Sophos State of Ransomware study reported being hit by ransomware. 
Story image
Digital Transformation
Unlocking the next digital frontier for educational institutions
Understanding where to invest in technology can be challenging for education institutions, especially after the COVID-19 disruptions.
Story image
Sustainability
Power at the edge: the role of data centers in sustainability
The Singaporean moratorium on new data center projects was recently lifted, with one of the conditions being an increased focus on power efficiency and sustainability.
Story image
Ransomware
Ingram Micro Cloud adds Bitdefender solutions to marketplace
Ingram Micro Cloud has announced the expanded availability of Bitdefender solutions on the Ingram Micro Cloud Marketplace.
Story image
BitTitan
Why tenant consolidation is critical to cloud success
Consolidating tenants can improve cost management, security and engagement after a flurry of reactive activity following the widespread shift to remote operations.