What is a Third-Party Vendor?

What is a Third-Party Vendor?

Table of contents

  1. What risks do third-party vendors bring?
  2. Do I need to worry about vendors who don’t work on critical business activities?
  3. What are examples of third-parties?
  4. What is vendor risk management?
  5. Is my business liable for third-party breaches?
  6. What are fourth-party vendors?
  7. How can I get information about my fourth-party vendors?
  8. How UpGuard can help you monitor your third-party and fourth-party vendors

1. What risks do third-party vendors bring?

2. Do I need to worry about vendors who don’t work on critical business activities?

3. What are examples of third-parties?

  • Manufacturers and suppliers (everything from PCBs to groceries)
  • Services providers, including cleaners, paper shredding, consultants and advisors
  • Short and long-term contractors. It’s important you need to manage short and long-term contractors to the same standard and assess the information that they have access to.
  • Any external staff. It’s important to understand that understanding of cyber risk can be widely different depending on the external staff.
  • Contracts of any length can pose a risk to your organization and the Internal Revenue Service (IRS) has regulations about vendor and third-party relationships that go beyond specific time frames so even the length of a contract can pose risk. In the IRS’s eyes, a vendor working onsite with a company email address for longer than a specific period of time should be classified as employees and receive benefits.

4. What is vendor risk management?

5. Is my business liable for third-party breaches?

6. What are fourth-party vendors?

  1. Who they are
  2. What products and services they provide to your vendor
  3. What level of due diligence your vendor has done on their vendors
  4. Their cybersecurity rating

7. How can I get information about my fourth-party vendors?

8. How UpGuard can help you monitor your third-party and fourth-party vendors

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