Despite 84 percent of businesses claiming to prioritize third-party risk management, more than 40 percent have insufficient visibility into their digital supply chain.
Panorays has released a comprehensive mid-year report titled ‘Navigating Third-Party Security Risks in 2023: Mid-Year Insights and Trends’. The report provides a broad understanding of the challenges and strategies in third-party risk management, a crucial focus for businesses seeking to bolster their digital ecosystems against escalating threats.
Key findings include:
- 84 percent of organizations prioritize third-party security risk management, indicating a growing awareness of the potential threats posed by third-party relationships.
- Only 13 percent of organizations continuously monitor the security risks of their third parties, highlighting a significant gap in current risk management practices, especially when considering critical vendors.
- 44 percent take three weeks or more to onboard a new third party, highlighting the complexity of managing third-party relationships – especially when companies have hundreds or thousands of third parties.
- 52 percent find manual data collection and vendor communication cumbersome, suggesting the need for more automated, streamlined processes.
- 43 percent have an insufficient view of fourth party vendor security risks, revealing a need for enhanced visibility across the entire supply chain.
The report underscores that in the face of an increasingly complex regulatory environment, organizations are grappling with managing a multitude of third-party relationships, with 58 percent of companies managing over 100 vendors. Despite these challenges, the crucial nature of third-party risks necessitates proactive management.