TPRM – Third-Party Risk Management: A Q&A Guide to Third-Party Risk Management

Today, an organization’s security is not limited to its own systems. Suppliers, business partners, service providers, and outsourced service providers may have direct or indirect access to an organization’s data and systems. Therefore, managing risks arising from third parties has become an important component of cybersecurity strategy.

Question 1: What is Third-Party Risk Management (TPRM)?

TPRM (Third-Party Risk Management) is a risk management approach designed to identify, assess, and mitigate security, operational, compliance, data, and other risks that may arise from the third parties with which an organization works.

Today, suppliers, business partners, and service providers often have direct access to the critical data, systems, and processes handled by an organization. Therefore, the primary objective is not only to secure the organization’s own systems but also to make the risks posed by third parties manageable.

Question 2: Why have third-party risks become more critical in recent years?

As organizations become increasingly dependent on third parties, the number of potential access points that unauthorized individuals could exploit grows, significantly expanding the attack surface. The large number of suppliers involved is also a key factor in this risk landscape.

Each third party may represent a potential vulnerability and attack vector in terms of data breaches, cyberattacks, and operational disruptions. Attackers are well aware of this reality. Rather than directly attacking a well-protected organization, targeting a less secure party that provides services to that organization is often an easier and less costly approach. In this context, third-party risk management plays a critical role in preventing data leaks, protecting reputation, and avoiding operational disruption.

Question 3: Who is considered a third party?

Any external organization that can access an organization’s data, systems, or processes may be considered a third party. Cloud and SaaS providers, software suppliers, consulting firms, call centers, and companies providing payroll and accounting services all fall within this scope.

Organizations often consider only IT suppliers to be third parties. However, in some cases, risks may originate from parties that do not appear on supplier lists or are not adequately monitored.

Question 4: Who is responsible for a data breach originating from a supplier?

Even if a data breach occurs on the supplier’s side, responsibility cannot be considered to have been fully transferred to the supplier when the affected data belongs to your organization’s customers. Under the Turkish Personal Data Protection Law (KVKK), the data controller is the party that determines why and how personal data is processed. In most cases, the supplier acts as the data processor, processing personal data on behalf of the organization. Therefore, stating that “the breach originated from the supplier” does not, by itself, provide sufficient legal or reputational protection.

Question 5: Is assessing suppliers once a year sufficient?

No, it is not sufficient. A questionnaire is a snapshot, not a movie. It only reflects the information the supplier has provided about itself at a specific point in time. One week after completing the questionnaire, a supplier may have an unpatched server, compromised credentials, or a significant change in its security posture. Therefore, an assessment should be regarded only as a starting point and should be supported by a continuous monitoring layer.

Question 6: What should an organization do first when starting TPRM?

You cannot manage a supplier that is not included in your inventory. The first step is to create a complete list of all third parties with which your organization works. The following questions should then be answered for each third party: What data can it access? What level of connectivity does it have to our systems? Which business process would be affected if its service were interrupted? The answers to these questions determine how thoroughly each supplier should be assessed and the level of risk at which it should be managed.

In conclusion, an organization’s security posture is no longer measured solely by the boundaries of its own networks. Rather than directly targeting a well-protected organization, attackers may attempt to gain access through a supplier with a lower level of security. For this reason, Third-Party Risk Management should not be treated as a one-time assessment exercise. It should be approached as an ongoing process in which inventory management, risk classification, assessment, and continuous monitoring work together.

As part of its Third-Party Risk Management solutions and TPRM managed services, Natica provides organizations with end-to-end support, from establishing supplier inventories and conducting risk assessments to carrying out continuous monitoring activities.