These increasing costs are why cybersecurity vendor risk management (VRM) is a top priority for CISOs, Vice Presidents of Security, and other members of senior management, even at the Board level. In addition to financial costs, regulatory and reputational costs are increasing.
Governments are enacting laws and regulations designed to promote, or require, third-party cyber risk management programs to identify, assess, mitigate, and oversee risks created by vendors, fourth-parties, and customers.
While VRM is business as usual for financial services and healthcare organizations, but a new issue to solve for many other industries.
With the introduction of general data protection laws, most organizations now need some semblance of a third-party risk management program.
For example, in the United States, California has introduced CCPA, and Florida has introduced FIPA to protect the personally identifiable information of its constituents. Outside of the United States, GDPR, LGPD, and PIPEDA are three relevant extraterritorial laws from the European Union, Brazil, and Canada, respectively. Alongside the protection of PII and PHI, many of these laws have introduced mandatory data breach notification requirements, which have significantly increased the reputational impact of inadequate vendor and cybersecurity risk management practices.
To add to this, security teams have more expected to not only manage and improve cybersecurity postures and information security policies but to translate technical details from cybersecurity risk assessments and vendor questionnaires into terms that non-technical stakeholders can understand.
The excellent news is third-party risk management tools can help you do exactly that. The issue is it's hard to decide on which ones to assess, let alone what criteria to use to evaluate them.
That's why we wrote this post to provide you with a clear comparison between NormShield, SecurityScorecard, and UpGuard, so you can make an informed decision and choose the tool that is right for you.
NormShield is a cyber risk rating platform that leverages open-source threat intelligence and non-intrusive cyber reconnaissance to provide information about your vendor risk at scale.
It collects a wide range of information without touching the target customer. It leverages advances in data science and machine learning to provide higher frequency and precise real-time risk assessments.
Like other security ratings providers, its data collection provides continuous risk monitoring of third-parties.
SecurityScorecard is a New York-based company that uses traffic and other publicly accessible data to build security ratings to evaluate vendors, price cyber insurance, among other use cases. SecurityScorecard's Co-founder and CEO is Alex Yampolskiy.
They also monitor "hacker chatter," social networks, and public data breach feeds for indicators of compromise.
SecurityScorecard's last funding round was a Series D from Nokia Growth Partners, Moody's, AXA Strategic Ventures, Intel, Google Ventures, Boldstart Ventures, Two Sigma Ventures, and Evolution Equity Partners.