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By: Damir Brescic

Why Third-Party Risk Management is Mandatory for Good Cybersecurity


Third-party vendors are a necessary part of doing business. But they can also be a serious blind spot. In today’s interconnected IT landscape, cyber attackers are increasingly targeting external partners to bypass stronger core defenses. From contractors and consultants to suppliers and service providers, any third party with network access is a potential entry point. 

Yet many organizations still don’t treat third-party cybersecurity with the urgency it deserves. In fact, many companies that would never fail to vet vendors for financial and legal risks routinely fail to evaluate their security postures.  

That’s where a proactive third-party risk management (TPRM) program becomes essential. 

The Scope and Scale of Third-Party Risk 

TPRM covers any external organization that connects to your systems or handles your data. This includes vendors you rely on daily—like IT service providers, software platforms or logistics partners. It also includes less visible players, like temporary contractors or third-party consultants. 

These relationships introduce risk in several forms: operational, reputational, compliance and, of course, cyber. That’s because one compromised vendor can trigger a cascading effect, exposing sensitive data and interrupting business operations. 

Why Most Programs Fall Short 

In practice, organizations often move too fast. As we’ve said before, speed kills. Companies often rush to onboard new vendors and push them into production without conducting proper cybersecurity due diligence. Meanwhile, internal teams like procurement and operations may not be aligned with security, which means new risks are introduced without awareness or oversight. 

Worse, many companies treat TPRM as a one-and-done event. They do a check at onboarding and never revisit the relationship, missing new vulnerabilities that emerge over time. 

What a Mature TPRM Program Looks Like 

A strong third-party risk program aligns people, process and technology. Personally, I work with clients to identify which of their vendors have access to critical systems or sensitive data, then assess their cybersecurity posture based on that access. 

At Inversion6, we use UpGuard as part of our managed service offering. The AI engine in UpGuard ingests vendor security documentation, including SOC 2 reports and internal policies—and produces a risk score. But we don’t stop there. We validate and review that output, ensuring it reflects the real risks. 

We then provide our clients and their vendors with an executive summary and a full risk report. These reports at tailored for board-level visibility, highlighting critical gaps and providing a roadmap for remediation. We also stay involved, offering ongoing support and quarterly reviews to make sure vendors are making progress and risks are being reduced. 

How We Make It Work at Scale 

Our model is scalable to hundreds of vendors with minimal client lift. That makes it especially useful for mid-size and enterprise clients who have security operations, but no governance or compliance staff. In fact, we're currently working with a major client managing more than 100 partners.  

We make it simple for our client by handling the outreach, the documentation, the reviews and the follow-ups. They simply hand us a list of vendors, and we take care of the rest. That includes managing communication, providing assessments and even helping vendors understand where they need to improve. 

When It Makes Sense to Invest 

If you have just a few vendors, a free tool might be enough. But once you're working with 20 or more third parties, managing the risk becomes a full-time job. Without a structured program, things can easily fall through the cracks. 

That's where our managed service can deliver serious value. We bring consistency, automation and deep expertise to the table. And we keep the process moving without requiring a huge lift from your team. 

Next Steps and Takeaways 

If you're ready to reduce your third-party risk, here are a few steps you can take: 

  • Align procurement, security and legal early in the onboarding process 

  • Identify which vendors have access to sensitive data or critical systems 

  • Use automated tools like UpGuard to assess risk, but make sure human experts are validating the findings 

  • Prioritize remediation based on real business impact 

  • Build in regular reviews and communication with your vendor partners 

Third-party risk isn’t going away. In fact, it’s only growing as businesses become more connected and reliant on external partners. A solid TPRM program helps you get ahead of the problem before it becomes a breach. 

At Inversion6, we're helping clients turn their vendor ecosystems into a security asset—not a liability.  

If you're ready to take control of your third-party risk, let's talk. 

 

Post Written By: Damir Brescic
Damir has an extensive and successful history in the cybersecurity industry, and we’re excited to have him join the team.

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