Organizations face mounting pressure to safeguard their operations from cybersecurity threats, especially when relying on third-party vendors. New standards are raising the bar, requiring companies to weave robust oversight, accountability and resilience into every stage of their vendor relationships. Now, senior leaders and boards must take an active role in setting risk policies and ensuring that third-party management is deeply integrated into enterprise risk frameworks.

To stay ahead, businesses should sharpen their due diligence processes, assess vendor risks based on criticality and service type, and update contracts to include enforceable provisions for audit rights and incident response. Continuous monitoring is no longer optional; organizations need to evaluate vendor performance and compliance using both internal metrics and independent assurance reports. Proactive business continuity planning, complete with joint recovery exercises and clear reporting to leadership helps ensure that data can be retrieved and systems can be restored quickly, even in the face of disruptions. Ultimately, the message is clear: strong third-party risk management isn’t just about compliance, it’s a vital pillar of cybersecurity and operational resilience.

Key Takeaways:

• Companies must take responsibility for third-party cybersecurity risks.
• Strong governance and ongoing oversight are essential at every step.
• Regular risk assessments and contract updates help drive compliance.
• Business continuity testing and transparent reporting build resilience and trust.