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Trust, But Verify: Building a Continuous Assurance Model for Third-Party Security

Cybersecurity isn't just about firewalls and endpoint protection anymore — it's about everyone you connect to. If your vendors, partners, or contractors aren’t secure, neither are you. That’s the harsh reality organizations are waking up to as supply chain attacks continue to rise in both volume and sophistication.

Why Traditional Vendor Risk Management Falls Short

Most organizations manage third-party risk through onboarding questionnaires and periodic audits. These are helpful — but they're snapshots, not a real-time feed. In a world where cyber threats evolve by the hour, checking in on a vendor once a year is like locking your front door and leaving the windows wide open.

Static due diligence models miss:

  • Zero-day vulnerabilities in vendors’ systems

  • Changes in vendor infrastructure or ownership

  • Insider threats and process lapses

  • Breaches that vendors don’t disclose

You can't trust what you can't see — and you certainly can't secure what you only assess once a year.

Continuous Assurance: What It Means and Why It Matters

“Trust, but verify” isn’t just a catchy phrase — it’s a mindset shift. Continuous assurance is about moving from one-time compliance checks to an ongoing, real-time understanding of your third-party ecosystem.

What Does Continuous Assurance Look Like?

  • Always-on monitoring of vendor networks and data flows

  • Automated alerts for policy violations or security incidents

  • Behavioral analytics to detect anomalous or risky third-party activity

  • Ongoing due diligence for regulatory alignment and best practices

This proactive approach enables organizations to respond faster, reduce exposure, and — crucially — maintain customer trust.

The MOVEit and SolarWinds Breaches

When Progress Software’s MOVEit Transfer platform was compromised in 2023, hundreds of organizations downstream suffered data breaches — many of them high-profile public and private institutions. The kicker? Many of those affected weren’t even direct users of MOVEit. They were exposed through vendors using the platform.

This wasn’t the first of its kind. The SolarWinds attack in 2020 was one of the most striking examples of supply chain compromise. Attackers inserted malware into a routine software update that was pushed to thousands of companies and government agencies. It went undetected for months — despite those agencies having robust internal controls.

Lesson learned? Even elite organizations are vulnerable when the systems they rely on — but don’t control — are compromised.

Key Components of a Continuous Assurance Model

Let’s break down the core pillars of a strong continuous assurance model that fits today’s threat landscape:

1. Vendor Risk Segmentation

Not all third parties are equal. A small marketing agency doesn’t carry the same risk as a cloud infrastructure provider. Segment vendors by:

  • Data access level

  • System integration depth

  • Business criticality

  • Geographic and regulatory footprint

2. Real-Time Monitoring Tools

Leverage platforms that go beyond point-in-time assessments:

  • BitSight: Offers daily risk ratings and breach detection

  • SecurityScorecard: Continuously evaluates vendor security posture

  • RiskRecon: Provides granular visibility into third-party security behavior

  • Panorays: Tailors risk scoring to business context and regulatory needs

These tools offer real-time data on vulnerabilities, attack surface changes, and potential breach indicators.

3. Contractual Enforcement and SLAs

Too many vendor contracts still lack real teeth when it comes to cybersecurity. Strengthen yours by including:

  • Mandatory adherence to industry frameworks (e.g., NIST CSF, ISO 27001)

  • Timely breach notification clauses (e.g., within 24–48 hours)

  • Regular proof of penetration testing and remediation

  • Audit rights or transparency portals for critical vendors

4. Automated Risk Scoring

Manual reviews won’t scale. Use automation to assign vendors a dynamic risk score that updates based on:

  • Publicly reported breaches

  • Dark web activity

  • IP reputation

  • Infrastructure changes

Risk scoring helps you triage which vendors need immediate attention and which can be reviewed on a longer cadence.

5. Third-Party Incident Response Playbooks

When a third-party incident hits, confusion costs time — and money. Have a predefined playbook for:

  • Identifying affected assets or users

  • Coordinating with the vendor's security team

  • Notifying internal stakeholders and regulators

  • Communicating transparently with customers

Make sure this playbook is tested — ideally annually.

Beyond the Third Party: The Risk of the Fourth and Fifth

Continuous assurance doesn't stop with your immediate vendors. You need to know who your vendors rely on.

Example: Your payroll provider might use a cloud service in a foreign jurisdiction that doesn’t meet your compliance standards. If that sub-vendor is breached, your employees’ sensitive data is at risk.

Tip: Ask vendors to disclose critical dependencies and require transparency around their own third-party practices. If they can't or won’t, reconsider their position in your ecosystem.

Building a Culture of Third-Party Accountability

Security isn’t just about controls — it’s about culture. Continuous assurance thrives in organizations that treat vendor security as a shared responsibility, not an outsourced checkbox.

  • Educate internal stakeholders on what shadow vendors look like

  • Build security awareness into procurement and legal teams

  • Reward vendors who go above and beyond with transparency and security maturity

  • Engage vendors in joint tabletop exercises or incident simulations

Encouraging proactive transparency leads to deeper trust and a stronger ecosystem.

Checklist: Jumpstarting Your Continuous Assurance Program

Here’s a quick-hit checklist to kickstart your journey:

  1. Maintain an up-to-date inventory of all third-party providers
  2. Tier vendors by business impact and data access
  3. Deploy at least one continuous third-party risk monitoring platform
  4. Implement automated risk scoring and alerts
  5. Include enforceable cybersecurity clauses in all contracts
  6. Regularly review 4th- and 5th-party risks
  7. Create and test third-party incident response playbooks
  8. Run security awareness training for internal vendor-facing teams

Take the Next Step

Your vendors aren’t going away — but the way you manage them must evolve. Talk to us and learn how to implement a scalable, intelligence-driven assurance model that fits your risk appetite and industry requirements.

Let us help you shift from trusting blindly to verifying continuously.

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