Every day third-party data breaches and data leaks inundated our news cycle. And for good reason, the average cost of a data breach is nearly $4 million globally.
This has led to organizations looking for ways to reduce cyber risk and prevent data breaches. Vendor risk management (VRM) is now a top priority for CISOs and other members of senior management, even at the Board level.
Beyond financial costs, data breaches have increased regulatory and reputational impact due to the introduction of general data protection laws.
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 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.
Vendor risk management is business as usual for financial services and healthcare organizations, but many other organizations need to learn about vendor risk management best practices.
To add to this, security teams have more expected to not only manage and improve security 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 evaluate them.
That's why we wrote this post to provide you with a clear comparison between Prevalent, RiskRecon, and UpGuard, so you can make an informed decision and choose the tool that is right for you.
Prevalent is a Phoenix-based company that enables you to reveal and reduce vendor risk with its 360-degree third-party risk management platform.
Prevalent's cybersecurity risk rating solution helps organizations manage and monitor the security threats and risks associated with third and fourth-party vendors.
RiskRecon's headquarters is in Salt Lake City, UT, with a presence in Boston, MA, and representatives around the world. RiskRecon was founded in 2015 by Kelly White to make it easy to gain deep, risk contextualized insight into the cybersecurity risk performance of all third-parties by using continuous monitoring and machine learning across 11 security domains and 41 security criteria.
Like Prevalent, third-party risk management, enterprise risk management, and mergers & acquisitions use RiskRecon's tools. RiskRecon was recently acquired by MasterCard.