What is Third-Party Access Management? A Guide for Execs

The world is so interconnected nowadays, that businesses increasingly rely on third-party vendors and service providers to streamline operations and enhance their offerings. This reliance often necessitates granting these external entities access to sensitive corporate networks, applications, and data, presenting significant security challenges. This brings us to the concept of Third-Party Access Management, a set of strategies, processes, and technologies used to mitigate the risks associated with third-party access.

So, what is Third-Party Access Management, and why is it more critical than ever?

Third-Party Access Management aims to establish a balance between leveraging the benefits of collaboration and outsourcing while safeguarding valuable assets from potential cyberattacks. It’s not about completely cutting off external access but rather establishing robust security controls and practices. These controls protect sensitive information while enabling efficient workflows.

Why Is Third-Party Access Management So Crucial?

Third-party access, while essential, expands your attack surface and elevates cyber security risks. External entities may have different security practices and protocols less rigorous than yours. Attackers understand this vulnerability and actively seek weak links within supply chains to infiltrate larger targets.

Data compromises skyrocketed to 2,116 during the first nine months of 2023. This surpasses the previous record of 1,862 incidents for all of 2021, as reported by the Identity Theft Resource Center. 2,116 in the first nine months of 2023. This trend highlights a real and pressing concern for organizations across industries.

The Impact of Data Breaches

The ramifications of neglecting Third-Party Access Management can be devastating, including:

Financial Loss: A data breach can result in substantial financial loss due to regulatory fines, legal fees, incident response costs, and the potential disruption of business operations.
Reputational Damage: A single data breach can irreversibly tarnish your hard-earned brand image, making it challenging to regain market share and rebuild consumer confidence. This leads to a loss of trust among clients, customers, and partners.
Compliance Violations: Non-compliance with data privacy regulations like GDPR and CCPA can result in heavy penalties and further harm your business reputation.

The average cost of a data breach in the US was $4.45 million in 2023. Vulnerabilities in third-party software could hike these costs by $90,000. These are alarming figures from Ponemon’s 2021 Cost of Data Breach Report demonstrating the significant financial implications. A 2022 Ponemon Institute study found that 61% of respondents couldn’t determine the number of third-party relationships they had. These statistics point to the widespread challenges companies face in managing and monitoring third-party access.

Key Components of Third-Party Access Management

Effective Third-Party Access Management involves several key components:

1. Risk Assessment & Due Diligence

A comprehensive risk assessment should be conducted before granting third-party access, focusing on:

Identifying critical assets that require protection.
Vetting vendors to assess their security practices.
Understanding data privacy compliance and contractual obligations.

This vetting process reduces vulnerabilities and fosters trust between your organization and your third-party vendors. It is crucial to implement proper risk management strategies to minimize potential threats from third parties.

2. Access Control & Privileged Access Management (PAM)

Access controls are the bedrock of a robust Third-Party Access Management strategy. They entail implementing granular permissions that restrict third-party users to only those resources essential for their assigned tasks.

Privileged access management (PAM) takes this concept a step further by providing additional layers of security for accounts with elevated privileges.

3. Security Policies and Procedures

Formalize security policies outlining acceptable use and access control protocols for third-party users. Enforce these policies with stringent procedures for access request, approval, and monitoring, along with clear incident response procedures in case of a breach. This structured approach helps establish a foundation for effective risk mitigation.

4. Continuous Monitoring & Auditing

Don’t treat Third-Party Access Management as a “set it and forget it” approach. Continuously monitor and audit third-party activities, including user behavior, system access patterns, and potential security incidents. This proactive vigilance can identify and neutralize threats promptly before they cause significant damage. Leverage tools that provide session monitoring and recording to gain a deeper understanding of how third-party vendors are interacting with your systems.

Best Practices for Implementing Third-Party Access Management

Managing third-party access requires adopting proactive security measures and adhering to best practices:

Establish a Strong Foundation:

Inventory: Document and keep an up-to-date inventory of all third-party vendors, along with the specific data they access, applications they use, and their authorized privileges.
Contractual Obligations: Ensure that security requirements and data privacy compliance expectations are explicitly defined in service level agreements (SLAs) with third-party vendors.

These initial steps lay the groundwork for a structured and accountable approach to vendor access.

Implement Robust Controls:

Strong Authentication: Enforce robust authentication practices such as Multi-factor Authentication (MFA) for all third-party access points.
Least Privilege Access: Restrict third-party user access to the bare minimum required for them to fulfill their contractual obligations.
Session Monitoring: Leverage solutions that provide session monitoring and recording to gain visibility into third-party activities within your systems. This includes keeping a record of their remote access sessions.

These practical steps significantly strengthen your security posture by preventing unauthorized access and enhancing your overall management solution for third-party access.

Regular Audits & Remediation

Conduct regular audits of third-party activities, reviewing user permissions, access logs, and potential security incidents. Take immediate corrective action if any security lapses or vulnerabilities are detected, demonstrating a commitment to maintaining high-security standards. Treat third-party vendors with the same vigilance and attention to security as your internal staff. Ensure their access rights are regularly reviewed and updated as needed.

Ponemon states that 44% of organizations surveyed experienced a data breach related to a third-party vendor. 74% of those breaches occurred due to granting vendors excessive privileged access. Implementing practices like the “principle of least privilege,” as emphasized by the cybersecurity team at OLAYEMIS, is a simple but vital strategy. This means that third-party users only get access to what is essential to fulfill their assigned tasks. Think of it as locking each door within your digital space and only giving out keys to those doors the vendors specifically need access to. This approach significantly reduces the risk of unauthorized data access.

Keep Pace With Technological Advancements

As technology evolves, cyber threats grow increasingly sophisticated. Continuous learning is key to third-party access management. Stay informed of emerging security trends, adopt advanced technologies to fortify your defenses, and participate in industry conferences and workshops to share knowledge and best practices. Third-party access management is an ongoing process that requires proactive attention and adaptation to new technologies and evolving cyber risks.

As the cloud becomes increasingly integral to business operations, organizations must be cognizant of the associated security challenges. The public cloud market’s rapid expansion from $145 billion in 2017 to almost $600 billion in 2023 makes managing third-party access within these environments even more critical. Ensure that your security measures extend seamlessly to cloud-based systems. Carefully evaluate and select cloud service providers that adhere to strict security standards and have robust identity governance frameworks in place.

Partnering with a specialized security provider like Vanta’s User Access Platform or incorporating tools such as the Password Vault can be crucial to fortifying your cloud environments and enhancing the overall security of your identity lifecycle management.

Case Study: The Zellis Breach

An excellent real-life example illustrating the severe consequences of inadequately managing third-party access is the Zellis breach in 2023. The breach exposed the data of thousands of employees across numerous organizations. Hackers gained unauthorized access to Zellis’s MOVEit file transfer platform, a commonly used third-party application. The incident underscores the significance of stringent security practices even for commonly used applications and highlights the importance of securing sensitive data from potential phishing attacks and malware attacks.

This incident serves as a potent reminder of the vulnerabilities businesses face. Zellis was responsible for payroll services, making this breach even more devastating, underscoring the need for effective management of vendor privileged access.

Breaches like these happen with unfortunate regularity. In this interconnected world, we share data with many third-party platforms. Implementing PAM is vital for safeguarding this data and ensuring the secure access of these third parties. Businesses need to understand the importance of PAM solutions in mitigating security risks associated with third-party access.

Effective Third-Party Access Management requires a blend of technology, strategy, and vigilance. PAM solutions that provide session monitoring and comprehensive data protection services can make all the difference in preventing potentially catastrophic breaches. This proactive approach is essential for protecting sensitive data from evolving cyber threats and ensuring compliance with privacy policies.

Conclusion

So, what is Third-Party Access Management in today’s complex world? It’s a multi-faceted approach, a commitment to vigilance, and a crucial part of safeguarding your business’s sensitive information in a digital landscape rife with challenges. Neglecting third-party access security opens the door for opportunistic cyber attackers seeking weak links. Embracing this approach strengthens defenses, safeguards sensitive information, and fosters stronger and more secure collaborations. Prioritizing proactive security measures helps prevent devastating data breaches that could damage both your financial stability and hard-earned reputation. It also ensures compliance with industry regulations and protects customer trust.

Perhaps your organization needs help putting the right security controls in place. Get in touch

FAQs About What Is Third-Party Access Management?

FAQ 1: What is the meaning of third-party access?

Third-party access refers to the authorization granted to entities outside your organization to access your systems, networks, applications, and data. This could include vendors, suppliers, contractors, business partners, or customers. It essentially allows external parties to utilize your resources. However, if their security measures are weak, it could create a vulnerability for your systems. Think of it as giving a house key to a contractor – they need access to perform specific tasks, but you want to make sure they are trustworthy and handle the key responsibly.

FAQ 2: What is meant by third-party management?

Third-party management is a broad term encompassing the process of overseeing your relationships with external parties throughout the entire lifecycle of their access. It includes the initial onboarding process of assessing risks, selecting and vetting vendors, and establishing clear contractual agreements. It also involves managing access control, implementing security policies, continuously monitoring third-party activities, auditing for potential security gaps, and responding efficiently in the event of a breach. It’s not just about controlling access but also building strong relationships, establishing clear expectations, and proactively managing the associated risks.

FAQ 3: What is third-party access on my phone?

Third-party access on your phone occurs when you grant permission to an app downloaded from a source other than the official app store (such as Google Play or Apple’s App Store) to access your device’s functions, data, or permissions. These apps are not necessarily malicious, but they carry an inherently higher risk than those vetted by official app stores. It’s essential to understand the permissions you’re granting to these third-party apps.

Regularly review which apps have access to your phone’s features, data, and permissions. If you see an app you no longer use or that seems suspicious, revoke its permissions. Using the built-in security settings of your operating system and ensuring regular updates is a helpful practice to maintain the security of your phone and data.

FAQ 4: What is third-party access security?

Third-party access security focuses on mitigating risks associated with external entities accessing your sensitive assets. This encompasses implementing strategies, tools, and technologies that bolster your organization’s defenses against potential vulnerabilities these third parties might create. Think of it as the layers of security around a vault; strong authentication measures, such as multi-factor authentication, act like a multi-lock system, while implementing granular access control is akin to separating the vault into different compartments, allowing different people access only to what they need. Implementing a robust third-party access security framework helps maintain the integrity and confidentiality of critical infrastructure and protects sensitive data from unauthorized access.

What is Third-Party Access Management? A Guide for Execs

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So, what is Third-Party Access Management, and why is it more critical than ever?