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Security Concepts Cybersecurity Glossary

Third-Party Risk

Cybersecurity risks introduced through vendors, partners, and other third parties with access to your systems or data.

Full Definition

Third-party risk refers to the potential for security vulnerabilities to be introduced into an organization through its external partners, vendors, suppliers, and service providers. As organizations increasingly rely on SaaS platforms, managed service providers, and cloud infrastructure, their security perimeter has effectively expanded to include all entities they share data or access with.\n\nThird-party breaches can expose an organization's customer data, internal systems, and intellectual property even when the organization itself has strong security controls. Infostealer malware infecting a vendor's employee device can harvest credentials for shared platforms, giving attackers access to the vendor's clients without ever targeting them directly.\n\nThird-party risk management programs involve vendor security assessments, contractual security requirements, continuous monitoring of vendor security posture, and threat intelligence tracking of vendor-associated breach activity.

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