Third-party cyber security risk management centres on identifying, assessing and mitigating risks posed by external vendors, suppliers, or partners that have, or provide, access to an organisation’s systems, data or infrastructure.  Traditionally, this has involved segmenting tasks and responsibilities – ensuring such risks are contained within distinct operational boundaries and addressed methodically, reducing the likelihood of wider systemic failures. 

However, this segmentation approach presents significant challenges when attempting to streamline the risk management process, as it can create silos that complicate efforts to optimize workflows.

Streamlining often requires breaking down such silos – but doing so can inadvertently increase risk exposure or compromise compliance requirements. 

Segmentation Challenges

Regulatory and Compliance Constraints. Third-party cyber security risk management (TPCSRM) processes are often subject to stringent regulatory requirements that dictate how risks must be assessed, reported and mitigated.  Introducing efficiencies may necessitate changes to workflows or documentation practises, potentially giving rise to compliance risks if not carefully managed.

Stakeholder Considerations. Implementing changes to TPCSRM processes typically involves multiple stakeholders spanning both internal teams and external vendors.  Resistance to change is common, especially when stakeholders perceive that streamlined processes may dilute control or oversight.  Balancing the need for efficiency with stakeholder buy-in can be a complex negotiation.

Lack of Unified Tools and Data Integration. TPCSRM remediation processes often rely on a mix of tools and data sources, each tailored to specific parts of the process. This bespoke or fragmented approach can lead to inefficiencies, such as redundant data entry or delays in communication.  At the same time, unifying tools and integrating data sources can be costly and also introduce new risks, such as expanded attack surfaces. 

Operational Complexity. Remediation processes must account for a wide range of potential scenarios, including varying risk profiles, vendor relationship and incident types.  Standardising or automating tasks to improve efficiency can be challenging in such a complex and variable environment, with flexibility often needed to accommodate and address unique cases.

Balancing the Speed and Risk Management. Efficiency improvements often seek to reduce the time allotted to remediation activities. However, faster processes can lead to oversights or insufficient analysis, particularly in high-risk scenarios. Ensuring that speed does not come at the expense of thoroughness requires careful process redesign and robust validation mechanisms.

Striking the Right Balance

While the segmented design of TPCSRM remediation processes is essential for controlling risk, it poses significant challenges to implementing process efficiencies.  Overcoming these challenges requires a nuanced approach that respects the need for segmentation while identifying areas where inefficiencies can be addressed without compromising risk management.  

Careful planning, stakeholder engagement and an investment in technology solutions are critical to striking the right balance. Benefits include:

1. Faster risk mitigation – streamlined processes allow organizations to identify, assess and remediate risks more quickly, reducing potential exposure to cyber threats.
2. Improved resource allocation – by eliminating redundancies and automating routine tasks, organizations can allocate resources to higher-priority activities, enhancing overall risk management.
3. Cost reduction – efficient workflows reduce operational costs by minimizing wasted time, manual errors and administrative overhead.
4. Improved vendor relationships – simplified and faster processes foster better communication and collaboration with third-party vendors, improving trust and transparency.
5. Scalability – process efficiencies make it easier to scale TPCSRM efforts as the number of third-party relationships grow, ensuring consistent performance without proportional increases in workload.
6. Enhanced compliance management – automated tracking and reporting systems reduce the risk of non-compliance by ensuring documentation is accurate, up-to-date and easily accessible. 
   
   

Conclusion

While challenging, implementing process efficiencies in a segmented third-party cyber security risk management framework is certainly achievable. Success requires a careful balance between maintaining segmentation to control risk while optimizing workflows to improve speed and cost-effectiveness. Organizations can achieve this balance through stakeholder engagement, investment in integrated technology solutions, and a phased approach to process redesign. Ultimately, more efficient processes not only strengthen resilience to cyber risks but also reduce costs and enhance vendor collaborations.