Navigating Third-Party Risk Management (TPRM) Beyond the Firewall

Mahesh Thiyagarajan
Jul 22
2 min read

It’s no longer just your internal systems that cyber insurers care about — it’s who you work with. From managed IT providers to payroll software, your vendors often have access to your data, and that makes Third-Party Risk Management (TPRM) a key concern.

Why It’s Gaining Attention

Recent breaches have shown how attackers use suppliers as backdoors into target organisations. Insurers are responding by requiring evidence that you’ve evaluated and are managing these risks.

Start with a Vendor Inventory

Create a list of all third parties that store your customer or staff data, access your systems or networks, or deliver business-critical services.

Include vendors like accounting platforms, website hosting providers, CRM tools, and MSPs.

Vendor meeting — Having a conversation with the vendor.

Ask These Core Questions

For each key vendor, try to document:- What data or access do they have?- Do they have their own security controls in place?- Are security clauses part of your agreement?- How will they notify you if they’re breached?

This doesn’t have to be complex; a simple one-page checklist or conversation log is a great start.

Contractual Controls Matter

Where possible, include security expectations in contracts: Breach notification timelines (e.g., within 48 hours), requirements for MFA or encryption, and rights to audit or request security documentation.

Even small businesses can request these, and many vendors will already be accustomed to it.

Review Periodically

Once a year, revisit your top vendors:- Are they still in use?- Have they had any incidents?- Do their access rights still make sense?

This helps ensure you’re not carrying unknown risks and demonstrates proactive governance to your insurer.

Wrapping Up

Third-Party Risk Management (TPRM) doesn’t need to be a bureaucratic nightmare. Start small, keep accurate records, and build upon them as you grow. Insurers want to see that you’ve thought about the risks and are doing something about them.