Libby Bevin

In the digital age, assuring the security and integrity of IT infrastructure is paramount for businesses of all sizes. Vulnerability scanning plays a crucial role in identifying weaknesses in systems and networks, and forms the backbone of any robust cybersecurity strategy. 

What happens, however, when this critical step fails or encounters issues? This article delves into how you should understand external vulnerability scans, scan reports, and scan results; the importance of scanning; common reasons for failures; and steps to troubleshoot these issues.

What is a vulnerability scan?

A vulnerability scan is a critical component in the cybersecurity toolkit. It provides an automated evaluation of systems, networks, and applications to unearth security vulnerabilities. 

This process is facilitated by software designed to probe the attack surface of an organization’s IT environment. By leveraging databases filled with known vulnerabilities, these scans can pinpoint security gaps — that is, weaknesses or flaws that could potentially serve as entry points for cybercriminals.

The scope of a vulnerability scan can vary widely, ranging from surface-level checks that identify outdated software and missing patches to deep dives that assess configurations, encryption weaknesses, and more intricate software bugs. The ultimate objective is to create a comprehensive inventory of vulnerabilities that exist within the digital ecosystem of a business. This inventory then becomes the foundation for further analysis and remediation efforts, guiding cybersecurity teams in prioritizing their response to the most critical vulnerabilities that pose the highest risk to the organization.

How often should you run a vulnerability scan?

Figuring out the best frequency for vulnerability scans hinges on several factors, including the organization’s risk profile, the nature of the data it handles, and its regulatory landscape. Best practices in the industry advocate for conducting vulnerability scans on a quarterly basis as a baseline. This pace assures that organizations maintain a consistent overview of their security posture, allowing them to react to new vulnerabilities in a timely manner.

For certain environments, however, quarterly scans may not suffice. In sectors where organizations deal with highly sensitive information or in highly dynamic IT environments, monthly or even weekly scans might be more appropriate. Such frequency assures that any vulnerabilities introduced by new software deployments or system updates are quickly identified and addressed.

Vulnerability scans should also happen after any significant changes to the IT environment, such as the deployment of new applications, updates to existing software, or modifications to network infrastructure. These scans help to verify that the changes have not inadvertently introduced new vulnerabilities or exposed the organization to additional risks.

In essence, the cadence of vulnerability scanning should be a reflection of an organization’s commitment to cybersecurity hygiene, balanced against its operational realities and risk tolerance. Tailoring the frequency of these scans to the specific needs and circumstances of the organization assures that cybersecurity efforts are both efficient and effective, providing a crucial line of defense in an ever-evolving threat landscape.

4 Steps of the Vulnerability Management Process

1. Identification. Discover vulnerabilities through automated scanning tools and manual testing techniques.
2. Evaluation. Assess the criticality of identified vulnerabilities, considering the potential impact and exploitability.
3. Remediation. Address vulnerabilities by applying patches, configuring changes, or implementing compensatory controls.
4. Verification. Re-scan to confirm the effectiveness of remediation efforts and confirm that no new vulnerabilities have been introduced.

What could cause a vulnerability scan to fail or go down?

Vulnerability scan failures or downtimes can significantly impede an organization’s ability to address security threats effectively. These failures can be attributed to many factors, each affecting the scan’s ability to perform its intended function.

• Network connectivity problems. A fundamental issue that can cause scans to fail is network connectivity issues. If the scanning tool cannot reach the target systems or networks due to network outages or misconfigurations, it will not be able to perform the scan.
• Misconfigured scan settings. Incorrect scan settings can lead to incomplete scans or scans that fail to run. This could be due to improperly defined targets, incorrect scan intensity levels, or the selection of inappropriate scan types for the target environment.
• Inadequate access permissions. Scans often require specific permissions to access and assess the systems they are scanning. Without the necessary permissions, the scan might fail to analyze the systems thoroughly, leading to incomplete vulnerability assessments.
• Outdated scanning software. Vulnerability scanning tools need to be updated regularly to recognize the latest vulnerabilities. Outdated software may not only fail to detect new vulnerabilities; it can also experience compatibility issues with newer systems and protocols, leading to scan failures.
• Interference from security controls. Firewalls, intrusion prevention systems (IPS), and other security measures can mistakenly identify scan traffic as malicious and block it. This interference, while well-meaning, can prevent the scan from reaching its targets or completing its tasks.

What should I do if my vulnerability scan service stops working?

When facing issues with your vulnerability scan service, a systematic approach to troubleshooting can help identify and resolve the problem efficiently.

1. Verify network connectivity and login credentials. Confirm that no network issues are preventing the vulnerability scanner tool from accessing its targets. Also, verify that the login credentials used by the scanner are correct and have not expired.
2. Review scan configuration. Examine the scan settings to assure they are correctly configured for your specific environment. This includes checking the target definitions, scan type selections, and any custom scan options that have been set.
3. Assure the scanning software is up to date. Regularly update your vulnerability scanning software to incorporate the latest vulnerability signatures and compatibility improvements. This both enhances the effectiveness of your scans and also reduces the likelihood of technical issues.
4. Consult the documentation. Many common issues and their solutions are documented in the tool’s user guide or online support resources. Reviewing these resources can provide insights into resolving the problem.
5. Seek support from the software provider. If the issue persists despite your troubleshooting efforts, contact the software provider’s support team for expert assistance. Provide them with detailed information about the problem, including any error messages and the steps you have already taken to resolve the issue.

Addressing issues with vulnerability scans promptly assures that your organization can continue to identify and address security vulnerabilities effectively, maintaining a strong cybersecurity posture.

Troubleshooting Vulnerability Scan Failures

When a vulnerability scan fails or doesn’t perform as expected, identifying and addressing the root cause is crucial for maintaining an effective cybersecurity posture. Here are expanded steps on how to troubleshoot common issues that could lead to vulnerability scan failures.

Check Network Connectivity

• Diagnose network issues. Use network diagnostic tools (ping or traceroute, for example) to verify that the scanning tool can communicate with the target systems. Network outages or misconfigurations can impede this communication, causing scans to fail.
• Verify network configurations. Confirm that the network configuration allows the scanner to reach its targets. This may involve checking network segments, VLAN configurations, and routing rules.

Review Scan Configurations

• Check target definitions. Incorrectly defined targets can result in scans failing to execute properly. Verify that all target IPs or domain names are correctly specified in the scan settings.
• Adjust scan intensity. Aggressive scan settings may overwhelm target systems or network resources, leading to disruptions. Consider adjusting the scan’s intensity or speed to reduce its impact on the network and target systems.
• Custom scan options. Custom scan options that aren’t compatible with the target IT environment can cause failures. Review any custom settings or advanced options and confirm that they are appropriate for the targets being scanned.

Validate Access Permissions

• Scanner credentials. Confirm that the scanner has been provided with valid credentials that grant it the necessary access levels to perform comprehensive scans on the target assets.
• Permission settings on targets. Ensure that the target systems are configured to allow the scanner to access and evaluate the necessary files, directories, and services. This may involve configuring or temporarily relaxing access control lists (ACLs) or permissions.

Update Scanning Software

• Install updates. Regularly check for and install updates to your vulnerability scanning software. These updates can include new vulnerability signatures, compatibility fixes, and performance improvements.
• Compatibility checks. Be sure that the scanning software is compatible with the operating systems and applications present on your target assets. Compatibility issues can lead to incomplete scans or false negatives.

Examine Security Controls

• Firewall rules. Review and adjust firewall rules that may be blocking scan traffic. Assure that the scanning traffic is allowed through from the scanner to the target systems.
• Intrusion prevention systems (IPS). Temporarily disable IPS features that might be interpreting scan traffic as a threat. If disabling is not possible, consider creating exceptions for scan traffic based on its source IP.

Consult Logs and Documentation

• Review scan logs. Scan logs can provide valuable insights into why a scan failed. Look for error messages or warnings that indicate what went wrong during the scan process.
• Documentation and support resources. Consult the scanning tool’s documentation and online support resources for troubleshooting advice. Many common issues and their solutions are documented and can guide you in resolving the problem.

By methodically working through these troubleshooting steps, organizations can identify and resolve the issues causing vulnerability scan failures, ensuring their scanning tools are effectively identifying and helping to mitigate security vulnerabilities.

ZenGRC Is Your Solution for Continuous Compliance & Risk Management

ZenGRC streamlines the vulnerability management program process by integrating with leading scanning tools and providing a centralized platform for tracking and managing vulnerabilities. 

Its dashboard offers real-time visibility into your security posture, allowing you to prioritize and address vulnerabilities efficiently. By automating compliance tasks and simplifying risk management, ZenGRC helps organizations maintain an active stance against cyber threats. This assures continuous compliance with industry standards and regulations. 

With ZenGRC, businesses can not only troubleshoot vulnerability scan failures more effectively; they can also enhance their overall cybersecurity framework, protecting their assets from potential breaches.

Learn how ZenGRC can help ease the burden of data exfiltration detection by scheduling a demo today. That’s worry-free compliance and incident response planning — the Zen way.

Implementing an effective governance, risk, and compliance (GRC) framework has become essential for businesses seeking to manage risk and assure regulatory compliance.

That’s easier said than done, unfortunately. Given today’s challenging regulatory and security environments, organizations need robust GRC capabilities to align governance, risk, and compliance activities. The key is finding the right GRC platform to meet your specific GRC needs. This allows for streamlined decision-making, a risk-aware culture, and an active approach to governance and compliance.

By taking a holistic approach to integrating governance, risk management, and compliance processes, GRC solutions provide actionable insights for risk mitigation and maintaining compliance. So how, exactly, can compliance officers do that? 

What Does GRC Software Do?

GRC software provides the tools to implement a GRC framework. The software takes a risk-based approach to aligning your company’s governance, risk management, and compliance activities, by using configurable workflows and automation.

The right GRC tool allows an organization to manage enterprise risks efficiently and assures real-time compliance with various regulatory compliance obligations, such as the EU’s General Data Protection Regulation or the PCI DSS standard to protect payment card data. All of this happens thanks to integrated risk management software, audit management, and compliance management apps and modules.

Integrating governance, risk assessment, incident management, policy management, and other capabilities into a cohesive system allows for streamlined decision-making, a risk-aware culture, and an active approach to regulatory compliance.

Important features such as customizable dashboards, predictive metrics, reporting tools, and easy onboarding all provide transparency for stakeholders and simplify GRC processes across the business.

Which Industries Benefit Most From GRC Solutions?

While configurable, cloud-based GRC solutions are valuable across sectors, they are especially beneficial for highly regulated industries such as finance, healthcare, IT, and manufacturing. 

These industries face stringent rules to protect healthcare data (HIPAA), credit card data (PCI DSS), financial data (the Sarbanes-Oxley Act), and other compliance obligations. Such sectors are also often at high risk for data breaches, cyber incidents, and third-party vulnerabilities.

GRC tools help these industries to manage enterprise risks, maintain business continuity, enhance cybersecurity, and uphold information security. The automation and integration capabilities break down silos to give stakeholders visibility across risk management processes.

With user-friendly interfaces and pre-built templates aligned to standard regulations, GRC software solutions centralize control management, IT governance, and sustainability initiatives onto a single, cloud-based management platform. This helps regulated industries comply cost-effectively with escalating state, federal, and international compliance requirements while managing operational, IT, and other organizational risks.

Key Features to Look for in a GRC Platform

When evaluating GRC solutions, pay close attention to features such as risk assessment capabilities, compliance management, audit trail, policy management, and customizable dashboards. Leading cloud-based platforms offer out-of-the-box integration with standard business systems and flexible workflows to map GRC processes.

An ideal cloud-based GRC tool should provide a holistic, real-time view of the organization’s risk landscape across IT, operations, finance, legal, third parties, and more. Configurable risk models and automated assessments enable data-driven insights to prioritize enterprise risks, cyber security vulnerabilities, vendor issues, and compliance gaps.

Robust but intuitive dashboards centralize reporting for stakeholders to demonstrate operational resilience, cyber readiness, and compliance across security, privacy, and enterprise risk management (ERM) programs. This provides actionable visibility, so that users can meet the requirements of the California Consumer Privacy Act (CCPA), SOC2, ISO, and other obligations, so you can manage risk and reduce project costs.

Top 5 GRC Tools of 2024

ZenGRC by RiskOptics

ZenGRC is an industry-leading integrated risk management platform. It stands out for its robust functionality, ease of use, and powerful reporting. ZenGRC offers unmatched capabilities for connecting GRC processes enterprise-wide.

ServiceNow Risk Management

ServiceNow provides flexible workflows and control management solutions for operational risk and resiliency. It integrates risk assessment, compliance tasks, audits, and incident response in a single platform.

RSA Archer Suite

RSA Archer helps organizations manage multiple GRC programs with out-of-the-box solutions for risk management, policy management, audits, continuity planning, and more. It provides strong business process mapping and automation.

LogicGate Platform

LogicGate centralizes GRC processes using configurable workflow automation. It offers user-friendly risk assessment and scoring tools for better visibility into vendors, projects, and ERM.

SAI360

SAI360 takes an audit-centric approach to connecting GRC activities. Strong audit management and issue tracking provides actionable insights across risk, compliance, and policy management.

ZenGRC Helps Businesses Maintain Compliance All Year Round

ZenGRC’s compliance automation module, ROAR, and leading-edge functionality help organizations maintain compliance all year round. Now offered as part of the ZenGRC platform, ROAR makes integrating compliance processes into a unified GRC framework easy.

With advanced workflows and control testing, the ROAR module automates evidence collection, compliance task scheduling, and exception management. Real-time dashboards provide stakeholders visibility into compliance coverage, while email reminders keep activities on track with regulatory requirements.

Schedule a demo today to learn how ZenGRC’s ROAR module can optimize your compliance program efforts through automation.

In today’s digital age, protecting your organization’s information assets is paramount. An information security management system (ISMS) plays a crucial role in this endeavor, providing a structured approach to managing and protecting company information. This article explores how an ISMS supports risk management, its key elements, the main security objectives, and how to define and make your organization’s information security objectives both measurable and actionable. Lastly, we introduce ZenGRC as your comprehensive software solution for risk management and information security.

How does an ISMS support risk management?

An ISMS supports risk management by providing a systematic framework for identifying, evaluating, and managing information security risks. It includes policies, procedures, and controls designed to protect an organization’s information assets from threats and vulnerabilities. 

By aligning with international standards such as ISO 27001, an ISMS assures a continuous review and improvement process. This allows organizations to adapt to new threats and maintain the confidentiality, integrity, and availability of their information.

Key Elements to Look for in an Information Security Management System (ISMS)

When safeguarding your information assets, the selection of an ISMS is a pivotal decision. A robust ISMS offers a comprehensive framework for managing and protecting these assets efficiently and effectively. Here’s a deeper dive into the essential elements that underline a competent ISMS.

Policy Framework

A strong policy framework is the cornerstone of an effective ISMS. It encompasses a comprehensive set of policies that articulate the organization’s commitment to information security, and defines roles, responsibilities, and expectations for employees and other stakeholders. These policies should cover a wide range of areas, including data protection, access control, incident response, and employee conduct. The goal is to create a cohesive and enforceable framework that governs all aspects of information security within the organization.

Risk Management 

At the heart of any ISMS is the risk management process. This involves identifying potential threats to information assets, assessing the vulnerabilities that could be exploited by these threats, and evaluating the impact of such exploits on the organization. 

Following this assessment, the organization must prioritize risks based on their potential impact and likelihood of occurrence. This helps executives to reach informed decisions on how to mitigate the risks effectively. The process assures that resources are allocated efficiently, focusing on the most significant threats to information security.

Control Selection and Implementation

Following the risk assessment, next is to select and implement appropriate information security controls. These controls are safeguards or countermeasures designed to mitigate identified risks to an acceptable level. The controls can be administrative (policies and procedures), technical (software and hardware), or physical (security guards and access control systems). The selection of controls should be guided by the principle of achieving maximum risk reduction with optimal resource usage, and they should be regularly reviewed and updated to assure continued effectiveness against evolving threats.

Performance Measurement

To gauge the effectiveness of an ISMS, performance measurement mechanisms are crucial. These mechanisms can include both qualitative and quantitative metrics, such as the number of security incidents, the effectiveness of incident response, compliance rates with security policies, and employee awareness levels. Regular audits and reviews are essential components of performance measurement, providing insights into the ISMS‘s effectiveness and areas for improvement.

Continuous Improvement

In the dynamic landscape of information security, continuous improvement is essential. An ISMS must include a feedback loop that allows for regular reviews of its effectiveness and efficiency, incorporating lessons learned from security incidents, audits, and the changing threat landscape. This process of continual enhancement assures that the ISMS remains aligned with the organization’s objectives and can adapt to new threats, technologies, and business requirements.

What are the main security objectives of ISMS?

The primary goal of an ISMS is to protect and secure an organization’s information assets. To achieve this, the ISMS focuses on several key security objectives:

Confidentiality

Confidentiality assures that information is accessible only to those with authorized access. This means protecting sensitive data from unauthorized disclosure, whether intentional or accidental. Mechanisms to uphold confidentiality include encryption, access control systems, and stringent authentication processes.

Integrity

Integrity maintains the accuracy and completeness of information. This objective assures that data is not altered in an unauthorized manner, whether in storage, processing, or transit. Controls to assure integrity include checksums, digital signatures, and robust access controls that limit who can modify data.

Availability

Availability assures that information and related services are accessible to authorized users when needed. This means protecting against disruptions to access, whether from technical failures, cyberattacks, or natural disasters. Strategies to enhance availability include redundant systems, backup and recovery procedures, and capacity planning.

Compliance

Compliance with laws, regulations, and contractual obligations related to information security is a critical objective. This includes adhering to laws such as the EU’s General Data Protection Directive (GDPR) for data protection, industry-specific regulations such as HIPAA for healthcare data, and any contractual agreements that dictate security standards. Compliance involves regular audits, employee training, and the implementation of controls tailored to meet these regulatory requirements.

By focusing on these objectives, an ISMS provides a structured approach to managing and protecting information assets, assuring that they remain secure, reliable, and available to support the organization’s goals.

Defining Your Organization’s Information Security Objectives Under ISMS

Establishing clear and actionable information security objectives is a critical step in implementing an effective ISM). The objectives guide your organization’s security efforts and assure alignment with broader business goals. Here’s a detailed approach to defining your organization’s information security objectives.

Understanding Business Context

The first step in defining your information security objectives is to gain a deep understanding of your organization’s business context. This involves identifying both internal and external factors that can influence your information security strategy. 

Internally, this might include your company’s mission, values, culture, and operational processes. Externally, it involves understanding the market in which your organization operates, including competitors, regulatory landscape, and evolving threats. Identifying stakeholders both internal (employees, management, board members) and external (customers, partners, regulators), and understanding their expectations regarding information security is also crucial. 

This comprehensive overview helps assure that your ISMS is tailored to your specific organizational context and can effectively support its needs.

Risk Assessment

A thorough risk assessment is required to define targeted information security objectives. This involves identifying the information assets that are critical to your organization’s operations and assessing the threats and vulnerabilities associated with these assets. 

By evaluating the potential impact of these risks on your business operations, you can prioritize them based on their likelihood and the severity of their potential impact. This prioritization helps you focus your information security efforts on areas that matter most, and assures that resources are allocated efficiently to mitigate risks that pose the greatest threat to your organization.

Aligning with Business Goals

Your information security objectives should not exist in isolation. Rather, they should be closely aligned with your overall business goals and objectives. For instance, if your business is focused on digital transformation, your information security objectives might emphasize protecting digital assets and assuring the secure adoption of new technologies. Similarly, if expanding into new markets is a key business goal, compliance with international data protection regulations might be a primary objective. Aligning information security objectives with business goals assures that your ISMS not only protects your organization from threats but also supports its growth and success.

Stakeholder Involvement

Engaging stakeholders as you define information security objectives is essential for several reasons. First, it helps assure that these objectives are relevant and realistic, taking into account the insights and concerns of those who will be affected by or responsible for implementing the ISMS. Second, involving stakeholders from different parts of the organization promotes a culture of security awareness and commitment, as stakeholders are more likely to support objectives they had a hand in creating. This involvement can range from soliciting feedback through surveys or interviews to involving representatives from various departments in the planning process.

By following these steps, you can assure that your information security objectives are well-defined, aligned with your business strategy, and supported across your organization. This strategic approach not only enhances the effectiveness of your ISMS but also helps in building a resilient and secure organizational environment.

Making Your Information Security Objectives Measurable and Actionable

To assure effectiveness, information security objectives should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. This involves:

1. Setting clear metrics. Define clear metrics and benchmarks to measure progress towards each objective.
2. Action plans. Develop detailed action plans outlining how each objective will be achieved, including resources required, responsibilities, and timelines.
3. Regular review. Set up a regular review process to assess progress, adapt to changes, and make necessary adjustments to objectives and plans.

Making your information security objectives measurable and actionable presents numerous benefits that are critical for the effective management and protection of an organization’s information assets. Some of the key advantages are below.

Enhanced Focus and Efficiency

By defining clear, measurable goals, organizations can prioritize their security efforts, focusing on the most critical areas that require attention. This prioritization helps in allocating resources more efficiently, assuring that time, budget, and personnel are directed towards initiatives that will have the most significant impact on the organization’s security posture. It transforms the often abstract concept of “improving security” into tangible, achievable targets, facilitating more effective planning and execution of security strategies.

Improved Accountability and Performance

Measurable and actionable objectives facilitate a culture of accountability within an organization. When objectives are clearly defined, it becomes easier to assign responsibility for specific outcomes to teams or individuals. This clarity helps in tracking progress against each objective, enabling management to evaluate performance accurately and address any areas of underperformance. It also motivates employees by giving them clear targets to aim for and providing a sense of achievement as these targets are met.

Better Risk Management

Actionable objectives assure that risk management efforts are focused and aligned with the organization’s broader risk profile and tolerance levels. By setting measurable goals for risk reduction, organizations can more effectively monitor their risk exposure and make informed decisions about where to invest in security controls. This active approach to risk management helps to mitigate potential threats and also demonstrates due diligence and compliance with regulatory requirements.

Enhanced Decision-Making

Quantifiable security objectives provide a solid foundation for decision-making. With specific metrics in place, organizations can assess the effectiveness of their security measures in real-time and adjust their strategies as needed. This agility is crucial in responding to the ever-changing threat landscape and assuring that security practices remain relevant and effective. Moreover, measurable results can be used to justify security investments to stakeholders, highlighting the value of information security initiatives in protecting organizational assets.

Increased Stakeholder Confidence

Finally, making information security objectives measurable and actionable increases confidence among stakeholders, including customers, investors, and regulatory bodies. Demonstrating a commitment to achieving specific, quantifiable security outcomes shows that an organization takes the protection of its information assets seriously. This not only enhances the organization’s reputation but also builds trust, which is essential in today’s data-driven business environment.

ZenGRC Is Your Risk Management & Information Security Solution

ZenGRC is designed to be the cornerstone of your organization’s risk management and information security policy and cyber security strategy. Offering a comprehensive suite of tools, ZenGRC streamlines and simplifies the complex processes of managing risks and assuring compliance with relevant regulations and standards. 

ZenGRC’s user-friendly interface and automated workflows facilitate a more efficient and effective approach to identifying, assessing, and mitigating risks. By providing a centralized platform for all your governance, risk management, and compliance (GRC) needs, ZenGRC enhances visibility into your risk landscape and security posture, enabling more informed decision-making and strategic planning.

Moreover, ZenGRC’s capabilities extend beyond risk management to support robust information security management. It integrates seamlessly with existing IT and security systems to offer real-time insights into vulnerabilities and to assure that security controls are continuously monitored and optimized. With its powerful analytics and customizable reporting features, ZenGRC empowers organizations to track progress, report on compliance and risk metrics effectively, and demonstrate due diligence to stakeholders. 

Whether you’re looking to fortify your information security, streamline compliance processes, or enhance your overall risk management strategy, ZenGRC provides a scalable and adaptable solution that grows with your organization, assuring long-term resilience and compliance.

Learn how ZenGRC can help ease the burden of data exfiltration detection by scheduling a demo today. That’s worry-free compliance and incident response planning — the Zen way.

According to a 2022 Gartner survey, 84 percent of executive risk committee members say that “misses” in third-party risk disrupted their business operations. That statistic is alarming, considering that most enterprise organizations have extensive third-party relationships with vendors, suppliers, and partners for business innovation or operational efficiency.

Moreover, most companies engage with third parties to handle administrative activities, such as payroll. Such engagements often deal with sensitive organizational and customer data – and if those relationships unfold without proper governance in place, they could introduce your organization to significant risk, known as third-party risk.

So, how do most companies manage third-party risk? Usually, they put a third-party risk management program into place; this provides the proper funding, visibility, and resources to conduct a third-party risk assessment and then respond to any threats from the risks you find.

As companies scale rapidly to serve their clients, their need to use more third-party vendors increases, making it untenable for companies without a coherent vendor risk management function.

This is where a robust third-party risk management software platform can help.

What Is Third-Party Management Software?

In simple terms, third-party management software is a set of tools that can manage the end-to-end lifecycle of vetting, selecting, onboarding, and managing third-party vendors for a company. These tools would typically contain a comprehensive management solution that can help you manage different types of vendors depending on their function (supply chain, technical support, payroll, and so forth).

Because onboarding and entrusting many third-party vendors with organizational data is fraught with risk, companies also deploy dedicated risk management solutions to manage, automate, and mitigate the risk associated with third-party vendors.

What are Third-Party Risk Management Tools?

Third-party risk management (TPRM) tools and platforms enable your organization to vet and onboard the correct set of vendors by running each through a vendor risk assessment template using the following steps.

1. Assess the reputation of third-party vendors and providers using stringent vendor risk assessment (VRA) questionnaires and market research data to arrive at a risk scoring mechanism. This helps an organization select the right vendor based on their needs.
2. Monitor the performance and diligence of third-party vendors on an ongoing basis, based on their IT and business framework, for any real-time indicators that might put the organization at reputational, legal, or financial risk.
3. Use a consistent approach to vendor onboarding and off-boarding workflows. This lets an organization set clear expectations and streamline its operations, bringing transparency and accountability to the third-party relationship.

Five Reasons Why it’s Important to Use Third-Party Risk Management Software

There are many advantages for companies considering investing in a third-party risk management software platform. The top five reasons to do so are below.

1. Plan for business continuity
   As the Gartner survey above highlights, many companies must spend adequate time and resources to assure business continuity within their third-party relationships. If a critical supplier suddenly becomes unavailable, that could cause severe organizational disruption.
   For example, if a third-party IT vendor suffers a significant disruption in its technology or people functions, that could also bring down the organization that engaged the vendor. TPRM software could monitor such scenarios and surface them with early warning signals for the executive leadership to take immediate action.
2. Reduce dependency on critical functions
   Suppose your organization depends on third-party vendors for critical functions such as payroll or IT support. In that case, your TPRM software platform can flag such scenarios for your team to diversify the mix of third-party service providers to reduce the dependency on a single point of failure.
   Furthermore, with redundancy built into the organization, you can mobilize other vendors to recover the lost time even if a single vendor fails to deliver to business commitments and service levels.
3. Monitor for upholding brand reputation
   Third-party vendors might be engaged for a specific function with your organization. Still, their actions or methods of doing business might also significantly affect your organization’s brand. For example, just imagine the nightmare your company would suffer if your crucial supplier used slave labor or a critical tech vendor’s poor security led to your customers’ data ending up on the dark web.
   Using TPRM software to monitor incidents in each of your third-party vendor relationships can help your communications team be aware of unsavory business incidents that might have occurred at your third-party vendor premises and prepare appropriate remediation measures.
4. Supporting shareholder reporting and responsibilities
   As a public-facing company, your leadership must align with Environment, Social and Governance (ESG) and regulatory standards (for example, the General Data Protection Regulation), including occupational health and safety protocols.
   Your TPRM software platform can monitor your third-party vendor relationships for any signals of them failing to align with such commitments. It can also provide your procurement team with the proper guidance to review and off-board non-performing vendors if necessary.
5. Mitigating IT and cyber risk exposure
   Any third-party vendor commitment can involve significant access to your organizational data. TPRM software can help you monitor the preparedness of your vendor relationships to identify cyber threats striking through your supply chain and then take necessary actions to defend your technology stack against such scenarios.

Best Practices for Third-Party Risk Management

Managing a large pool of third-party vendors for your company might seem overwhelming. Several best practices can help you tackle that challenge into a manageable, sustainable, successful program.

• Deploy a comprehensive risk intelligence team to monitor all third-party vendor engagements continually.
• Gain leadership support from your company to invest in the due diligence and Know Your Client (KYC) and Anti Money Laundering (AML) regulations for your third-party vendors.
• Perform regular audits of your third-party vendors to evaluate their readiness to uphold security, health, and governance standards.
• Invest judiciously in your organization’s IT infrastructure and security stack to shield yourself against external attacks.

For your reference, here is an article with a complete list of best practices for managing operational risk for third-party vendors.

Which Industries Benefit Most from TPRM Software?

Organizations in highly regulated industries benefit significantly from TPRM solutions. These include financial services, healthcare, and pharmaceuticals. TPRM tools allow centralized tracking of vendors. This enables compliance and avoids regulatory issues.

 

Other industries also achieve advantages with TPRM software. Retail, manufacturing, and technology utilize third-party vendors heavily. Onboarding and assessing vendors efficiently with TPRM reduces disruptions. Any business engaging third-party providers should consider TPRM capabilities.

 

TPRM ecosystems automate assessment processes for vendors. Dashboards centralize data like risk profiles and SLAs. Customizable risk monitoring and mitigation features are critical. Also, stakeholders get complete visibility into inherent vendor risk. This strengthens cybersecurity across the third-party ecosystem.

 

TPRM software also helps meet various compliance requirements. These include regulations like the National Institute of Standards and Technology (NIST) and data privacy laws. TPRM solutions provide automation, visibility, and control over an expanding third-party ecosystem.

Key Features to Look for in TPRM Software

When evaluating TPRM software, some key features to look for include:

• Centralized vendor database to store due diligence documents, contracts, assessments, and other information in one place
• Risk scoring based on vendor questionnaires, financial stability, past performance, and other metrics
• Workflow automation for processes like onboarding, approvals, renewals, and offboarding
• Real-time monitoring and notifications related to service disruptions, security events, financial changes, compliance lapses, etc.
• Custom risk assessment templates to evaluate vendors based on internal policies and external regulations
• Reporting tools to analyze vendor data, risk profiles, and performance trends
• Integration capabilities with existing systems like procurement, Enterprise Resource Planning (ERPs), and Governance, Risk and Compliance (GRC) platforms

Choosing the Best TPRM Software or Tools for Your Organization

Selecting the right TPRM software requires understanding your organization’s requirements and challenges. Key considerations include:

• Evaluate TPRM solutions based on your organization’s needs and challenges. Prioritize industry-specific compliance capabilities and workflow flexibility.
• Assess the ability to scale globally and integrate with existing systems. Compare deployment options, security features, and support services.
• Map workflows and requirements through stakeholder interviews. This will help narrow down the top solutions for further evaluation.
• Select a TPRM platform that reduces vulnerabilities through continuous monitoring and automated risk mitigation. Leading options include OnTrust, Prevalent, ProcessUnity, and BitSight.
• The right TPRM software provides visibility and control over inherent risks across third parties. It strengthens security posture and avoids data breaches from supplier risks.

Manage Your Vendors With Ease With ZenGRC

Maintaining and scaling a business by engaging third-party business providers is possible today. However, you can safely manage the risk of engaging with many third-party providers using the right TPRM software platform.

The ZenGRC is a comprehensive solution that can bring all your third-party relationships under one roof so you can more easily manage and mitigate third-party risks.

If you would like to know more, schedule a demo today to learn how ZenGRC could help your company prepare to engage with your third-party providers correctly.

Enterprise Risk Management (ERM) has become increasingly important in today’s complex business environment, where organizations face various risks: operational, financial, regulatory, and more. Companies are turning to risk management software to manage these risks effectively, which streamlines identifying, assessing, and mitigating risks.

In this article, we’ll explore the challenges of risk management, the benefits of using risk management software, and how you can improve your risk management efforts.

The Benefits of Risk Management Software

Risk management software has several benefits.

1. Improved risk identification.

Risk management software can help organizations improve their risk identification process by using advanced techniques and algorithms to analyze large amounts of data. This allows organizations to identify and mitigate risks early before they become significant issues.

2. Increased efficiency

Risk management software allows organizations to streamline their entire risk management process, from identifying risks to developing response plans. The software automates repetitive tasks such as data entry and risk scoring, which frees time for more critical tasks such as risk analysis and mitigation planning.

3. Better decision-making

Risk management software can provide organizations with real-time insights and data visualization tools to make informed decisions about risk management strategies. The software can analyze risk data and identify patterns and trends, allowing organizations to understand how risks might affect them and the best response (including doing nothing at all).

4. Enhanced compliance

Risk management software helps organizations to assure regulatory compliance. The software offers a range of features, such as automated compliance tracking, reporting, and audit trails, making it easier for organizations to monitor compliance-related risks. Furthermore, risk management software can generate compliance reports in real-time, which provides valuable insights into compliance activities and enables organizations to detect areas of non-compliance and take necessary action quickly.

Advantages of the Risk Management Process

Beyond the risk management software, the overall benefits of risk management can also have positive long-term effects on your business, team, and growth. Below are some benefits of the risk management process:

• Early risk detection. With robust risk management practices, it becomes easier to identify potential problems and vulnerabilities before they grow unmanageable and expensive to rectify. Warning signs can be spotted early, allowing for timely intervention.
• Informed business decisions. A thorough risk management process provides critical insights into potential risks associated with various business decisions. That, in turn, allows business leaders to make decisions that better align with the organization’s business strategy. This can help the organization avoid costly mistakes and seize new opportunities while minimizing risk. It also enables the organization to assess different types of risk, including emerging risks associated with the latest technologies.
• Improved stakeholder confidence. A well-executed risk management plan enhances stakeholder confidence, including customers, suppliers, investors, and employees, as it demonstrates a commitment to project success and reduces the likelihood of bad outcomes that could harm the organization’s reputation. It also helps the organization manage its risk exposure by identifying and assessing potential risks across different areas of the business, breaking down silos, and promoting collaboration.

What Are the Challenges of Risk Management?

Risk management is a complex process that involves identifying, assessing, and mitigating potential risks that an organization may face. Let’s consider the top three challenges of risk management.

1. Identifying and assessing risks. Identifying all the risks that might affect an organization can be challenging, especially with the increasing complexities of operational risk. Additionally, evaluating the effect of each risk can be a complex process, as different factors can play a part. That said, senior management must be involved in identifying and assessing risks, and automation can help streamline the process.
2. Allocating resources. Organizations need to invest in new technologies to protect their systems. The reality, however, is that organizations have limited resources, and there may be competing priorities for those resources – hence, resource allocation becomes challenging.
3. Monitoring and reporting. Effective reporting is vital for identifying potential threats and responding quickly to mitigate their impact. Reporting can be resource-intensive, requiring organizations to invest in robust monitoring tools and trained staff to understand the data. Additionally, reporting on cyber risk management initiatives can be challenging, as stakeholders may have different needs and require different types of information.

How Do You Overcome Risk Management Challenges?

Businesses can take the following key risk management steps to manage risk management challenges well.

1. Develop a comprehensive cyber risk management plan that addresses all aspects of cyber risk, including data security, financial risk, and supply chain vulnerabilities.
2. Create metrics to measure the effectiveness of cyber risk management efforts. Then, communicate those metrics to key stakeholders, including business units, senior management, and the board of directors.
3. Regularly assess and update critical risks and vulnerabilities to ensure the risk management plan is up-to-date and relevant.
4. Train all employees on cybersecurity best practices and ensure they understand their role in maintaining data security.
5. Assure that cybersecurity is considered a competitive advantage and that investments in cyber risk management are aligned with broader business goals.
6. Integrate cyber risk management into the broader risk management framework and regularly review and update it alongside other key risk areas.
7. Implement encryption and other data security technologies to protect sensitive information and prevent data breaches.

Key Features to Look for in Risk Management Software

The following is a list of key elements to look for when choosing a risk management solution:

Logs risk data and monitor changes. Your risk management platform should help document every threat with the proper likelihood, tolerance, impact, and risk mitigation assessments. It should also be capable of tracking, recording, and displaying changes to risk assessment results over time.

Ease of Use The process of generating a risk register should be evident and simple, beginning with the option to import a list of current threats in bulk from a spreadsheet or establish new risks one at a time.

Facilitates successful project management: Your risk management system should enable you to continuously track and manage risks daily, measure progress over time, and have built-in risk reporting and notification functionalities.

Facilitates effective collaboration: Risk management necessitates a collaborative effort from stakeholders within and outside your organization. Your software should facilitate this collaboration effort by providing collaborative workflows such as analyzing risks and approving risk treatment plans, assigning duties to various persons, and designing questionnaires to analyze your suppliers’ risk profiles.

Integration with current compliance management software. It’s critical to avoid repeating your risk and compliance activities. Your software should assist by connecting threats to mitigating measures. Creating a risk register in the same software platform used to track compliance (including efforts toward security certifications such as ISO 27001) makes gathering proof of risk management activities much easier when it comes time for an audit.

Tailored to your individual organization. Your Enterprise Risk Management (ERM) software should be easily customizable, such as setting specialized fields to view risk by category, team, or location in your dashboard. Also, ensure your software is consistent with the risk management model you want to employ and prioritizes the risks based on your risk calculation requirements.

Supports numerous roles and access levels. Because risk information might be sensitive, your program must limit access to the data in your risk register. The software you choose should enable numerous roles and allow you to manage access to risk data effectively.

Adequately secures information. If you’re buying cloud-based risk management tools, be sure the seller has adequate data protection procedures in place. For further confidence, check to see whether your third-party software provider has any security compliance certifications, such as SOC 2 or ISO 27001.

Reports for stakeholders: Boards and senior management must understand your company’s risk profile and how those risks are addressed. Your chosen software should provide open communication and quick reporting to executive stakeholders. An ideal software solution should include visual assistance for tracking hazards over time, making it easier to see patterns and dig down into specific high-risk regions.

Choosing the Right Risk Management Software for Your Needs

If your team is ready to take advantage of the numerous benefits of risk management software, it is time to begin the evaluation process. We propose the following measures for anyone seeking to make the best decision:

1. Research thoroughly: We’ve covered the key risk management qualities. Now, it’s time to create a list of software options to consider depending on your essential features and your budget. You should also identify the critical stakeholders involved in the review process, such as your CTO, Head of Security, and Head of IT.
2. Prepare the business case: Your team must present a compelling case for the investment to secure senior management’s support and buy-in. Consider how much time your team is presently spending on manual risk monitoring activities, as well as the time lost owing to duplicative risk/compliance initiatives caused by organizational silos. Then, bring your decision-makers to personalized demos where they can witness the benefits of risk management software firsthand.
3. Budgeting: This step naturally follows the first two. Research your priorities, compare pricing, and plan a demo for your key stakeholders. When you choose the greatest option for your organization’s needs and support it with facts, the budgeting process becomes considerably easier.

How RiskOptics Can Improve Your Risk Management Efforts

Risk management can be overwhelming; The ZenGRC can help. It offers a comprehensive solution to supplement your cyber risk management strategy. The unified platform provides powerful tools and features to assist you in navigating the entire risk management process, from risk appraisal to risk management and continuous risk monitoring.

Whether assessing your current risk posture, developing risk management plans, or monitoring your risk profile over time, ZenGRC offers a streamlined and efficient approach to help you achieve your risk management goals. Schedule a demo today and see how ZenGRC gives you the visibility needed to stay ahead of cyber threats.