Around the world, new regulations about the collection and usage of personal data are changing workflows for major organizations. Following the passage of legislation like General Data Protection Regulation (GDPR) in the EU and the California Consumer Privacy Act (CCPA), businesses are auditing privacy practices and creating much stricter guidelines when they select partners and vendors.
With tighter regulations about the way consumer data is collected and used, organizations have to increase scrutiny for every party that has access to personal data. The entire system is only as secure as the weakest part, so it’s more important than ever to vet external parties and maintain visibility into their data practices. Here are eight vital steps organizations can take to ensure that vendors aren’t jeopardizing data privacy compliance.
Step 1: Audit Your Existing Data Privacy System
Before you do anything else, examine what’s currently in place to understand the changes that need to be made to maintain compliance with new regulations. You want to avoid reinventing the wheel and make adjustments without slowing down the business or adding risks.
After that self-examination, conduct the same check on your network of vendors. It’s imperative that you have a 360-degree understanding of vendors’ business practices and overall reliability before entering or continuing business relationships.
SIG University student Hanne McBlain enrolled in the Certified Third Party Risk Management Professional (C3PRMP) Program while working at Information Services Group. She shares what she learned from her own experience with a data breach and how she is taking a proactive approach to IT vendor risk management to mitigate future business disruptions.
In times of cost-cutting, vendor management functions that include third party risk are often the first to go or be significantly reduced. Many senior executives fail to see the value these functions bring and are usually happy to cover third party risk as part of a general risk function.
Stakeholder Support is Critical
I previously worked for an organization that prided itself on not relying on third parties for any critical functions. Redundancy was abundant and built into every platform, and on the surface, there was not much to worry about when it came to third party risk.
During my time there things started to change. We convinced the organization to implement a third party risk management framework. But with no experience in this area, we were fighting an uphill battle. We managed to win support and quickly implemented standard due diligence and on-going monitoring of critical suppliers. The business stakeholders generally regarded the added due diligence and tracking as unnecessary and bureaucratic.