The need to conduct business in physical locations is increasingly becoming less important in the modern and digital landscape. In fact, remote access has long been employed by IT professionals, engineers, and third-party vendors since the 80s via protocols such as Telnet, SSH, and RDP. These technologies were originally designed to support global infrastructure maintenance under a traditional perimeter-based security model. Now, remote connectivity underpins digital transformation, cloud initiatives, and both industrial and operational technology environments – making it indispensable while simultaneously increasing exposure to cyber threats.

There is no denying that the shift towards remote operations does bring significant improvements in flexibility and productivity, but it also introduces persistent security challenges and an expanded attack surface that modern threat actors can exploit. For one, the evolution of “keys to the kingdom” – from built-in administrative accounts to over-permissioned access and roles – has introduced critical blind spots for security teams. Compounding this challenge is the growing reliance on third-party services. According to a 2023 Third-Party Breach Report, nearly 29% of data breaches originate from vulnerabilities in third-party relationships. Moreover, as organisations engage multiple vendors for identity and cyber security services and solutions, they often encounter issues with session management, visibility, and isolation, further straining their security posture.

Understanding Third-Party Risk Management (TPRM)

Third-Party Risk Management (TPRM) is the systematic process of identifying, assessing, and mitigating risks linked to external vendors and service providers. It provides organisations with a comprehensive view of their third-party relationships and the security measures these partners have implemented.

By evaluating potential points of compromise – whether through suppliers, partners, or contractors with privileged access – organisations can convert vulnerabilities into manageable risks, similar to conducting traditional VAPT in Singapore. This approach not only strengthens overall security but also ensures compliance and operational resilience. Depending on the business, TPRM responsibilities may be handled by dedicated teams or distributed across various departments, emphasising its enterprise-wide importance.

Best practices for implementing TPRM

Effectively managing the risk of third-party cyber attacks requires a multi-faceted strategy that includes the following core procedures:

1. Maintain an accurate vendor inventory

An up-to-date inventory of all third-party vendors and partnerships is fundamental to effective TPRM. Companies must continuously review contractual agreements and financial records to capture every active partnership. Leveraging automated TPRM solutions can help monitor changes in a vendor’s security posture throughout its lifecycle. This proactive approach minimises the chance of overlooking a partner whose security controls may differ from internal standards.

2. Establish robust risk assessment processes

A comprehensive risk assessment framework should begin with due diligence evaluations prior to onboarding new vendors and followed by periodic cybersecurity assessments and regular updates to risk strategies. Implementing a criticality rating system then takes precedence as it enables organisations to prioritise vendors based on their potential impact on operations. Additionally, a structured risk management framework not only tracks remediation progress but also facilitates the waiver of risks deemed non-critical, ensuring resources are focused where they matter most.

3. Ensure organisation-wide adoption of TPRM practices

The success of any TPRM programme depends on broad organisational commitment. When all departments and employees adopt standardised security practices and remain vigilant against potential threats – such as phishing attacks – the collective defence is significantly strengthened. Cultivating a culture of cybersecurity awareness is essential to neutralising risks before they escalate.

4. Define and monitor performance metrics 

Establishing key performance indicators (KPIs) is vital for the continuous improvement of an organisation’s TPRM. Metrics should cover areas such as third-party risk exposure, compliance adherence, threat intelligence, and overall TPRM coverage. Regularly reviewing these KPIs allows risk management teams to pinpoint weaknesses and adjust strategies, ensuring that the TPRM programme remains agile and effective over time.

5. Align executive leadership with TPRM initiatives

Third-party risk is not solely an IT issue – it affects every facet of a business. Therefore, it is critical that the C-suite and board of directors are fully engaged in TPRM efforts. If an organisation has a Chief Risk Officer (CRO), that role should take the lead in educating senior management about TPRM; otherwise, the Chief Information Security Officer (CISO) must ensure that executives understand how inadequate third-party security can disrupt business continuity, lead to regulatory fines, and damage reputation. Securing executive buy-in helps allocate necessary resources and sets the tone for an enterprise-wide security culture.

Each of these practices contributes to a holistic approach to third-party risk management. By integrating these elements into their core operations, organisations can better manage vulnerabilities, safeguard critical assets, and maintain stakeholder trust.

Conclusion

As businesses become more interconnected and increasingly reliant on external partnerships, third-party risk management has evolved from a competitive differentiator into an operational and regulatory necessity. A well-structured TPRM programme not only mitigates security risks but also establishes trust with customers and stakeholders by ensuring that remote access pathways remain secure. Ultimately, organisations that prioritise TPRM are better positioned to navigate the complexities of modern cyber threats.

From data breaches to ransomware attacks, cyber threats are more sophisticated than ever. Group8 delivers cutting-edge cybersecurity solutions tailored to your industry, empowering you with resilience and readiness. Whether you need security assessments or round-the-clock incident response, we’ve got you covered. Let’s safeguard your business together – reach out to us at hello@group8.co today.