As outsourcing significant business functions is now common practice for most organizations, major third-party data breaches are rapidly taking over news headlines.
Ponemon Institute and IBM’s 2019 Cost of a Data Breach Report found the average cost of a breach has increased from $370,000 to $4.29 million, with third-party involvement listed as one of the main reasons. An eSentire surveyfrom the same year highlights that 44% of firms surveyed have experienced a significant data breach caused by a third-party vendor.
With Gartner reporting 60% of organizations as having 1000+ third-party relationships, effectively managing the cybersecurity risks they create and practicing vendor due diligence proves increasingly difficult.
Information security teams often also rely on manual risk reporting methods which are time and labor-intensive. Many organizations are now turning to automated third-party risk management (TPRM) solutions that automate data breach detection capabilities, provide real-time insights, and streamline remediation workflows.
We assess three TPRM solutions, SecurityScorecard, Prevalent, and UpGuard, to help you make an informed decision before investing in the right solution for your needs.
SecurityScorecard is a New York-based security ratings platform that uses traffic and other publicly accessible data to build security ratings to evaluate vendors and manage cyber risk among other use cases.
SecurityScoreCard also monitors "hacker chatter" and other public data feeds for indicators of compromise.
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.
Their tools can be used for third-party risk management, vendor risk management, data privacy, internal IT & cybersecurity assessment, and by vendors.