---
title: Tips for Minimizing the Risk of a Third-Party Data Breach
description: Here are some tips to help ensure compliance across your third-party vendors and reduce overall risk.
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---
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# Tips for Minimizing the Risk of a Third-Party Data Breach
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- Tips for Minimizing the Risk of a Third-Party Data Breach
[USI Security](https://inbound.usisecurity.com/blog/author/usi-security) 08/27/2020 [Physical Security](https://inbound.usisecurity.com/blog/topic/physical-security)
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2 Minutes
In today’s business world, it’s common to share some form of company data with third-party vendors, whether through outsourcing or physical security systems. Unfortunately, third-party data breaches have also become more common as a result. Third-party data breaches can occur when your data is stolen from their systems or are exploited to access and steal data from your system. Most of the time it is out of the company’s control, as they can operate under strict security controls, but those same standards are not enforced with the third-party vendor. So how can you better protect your business from a third-party data breach? Here are some tips to help ensure compliance across your third-party vendors and reduce overall risk.
### Assess Third-Party Vendor’s Security Protocols Prior to Doing Business
One of the first ways to avoid a data breach is to assess your potential third-party vendor’s security protocols before agreeing to do business with them. Not only is it important to review how they deal with security, but also to ensure they are a reputable vendor as well. Find out what compliance frameworks they are required to adhere to, what protective measures they have in place, and review their vulnerability management program.
### Set Security Standards
If you choose a vendor you think will be right for you, now’s the time to incorporate security standards and expectations into your contracts. While this doesn’t prevent a third-party breach from happening, it holds them accountable to maintain cybersecurity measures, or risk losing their contract.
Another way you can establish security standards for your third-party vendor is by creating a vendor risk management plan. This will outline the services and data they can access, how that access is managed and monitored, and who is liable if a data breach occurs. You can significantly reduce the risk of third-party data breaches and protect sensitive data by ensuring your vendor only has access to the data that they need for business purposes.
### Perform an Initial Security Assessment
Performing an initial security assessment of your vendor’s IT system will help uncover any existing cybersecurity gaps or vulnerabilities prior to your business agreement. This initial assessment can help you determine if there is a need for new software or security protocols before doing business, as well as ensure continuous monitoring down the line.
### Require Reports for Any Changes in Security Protocols
The initial security assessment is important, as well as continuing to monitor security controls over the entirety of your relationship with your vendor. Organizations must require vendors to report any significant changes that could impact the security of company data or assets in order to reduce exposure and resolve security issues. Monitoring third-party security controls will also aid in detecting any deviations or disruptions in your vendor’s secure environment that could lead to a data breach.
Unfortunately, data breaches over the years have commonly been linked to third-party vendor relationships. These breaches can have adverse effects to your business, which is why it’s important to work collaboratively with your vendor and implement these tips to maintain security and minimize risk.
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