Business Risk Profile: Third-Party Risk

There are many strategic advantages to outsourcing, from cost optimization to having an increased focus on an organization’s core competencies. However, entrusting third-party vendors, contractors, or partners with access to internal systems and data can expose organizations to certain risks. In the event that a security incident or breach of a third party inadvertently jeopardizes the client’s assets or information with which they are entrusted, client organizations can face financial, operational, legal, or reputational consequences. As such, outsourcing decisions must be made with consideration to a broad range of risk factors.

December 20, 2017