????? CrowdStrike's Global Outage: A Wake-Up Call for Third-Party Vendor Management ?????

?? What Happened?

On July 19, 2024, CrowdStrike, a leading U.S. cybersecurity firm, experienced a critical outage due to a defect in a software update for its Falcon product on Microsoft Windows systems. This outage affected global customers, including airports, banks, and other businesses, causing significant disruptions. The issue was not related to a security incident or cyberattack but stemmed from the faulty interaction between the software update and the Windows operating system (Read more about the incident here: CNN Coverage)

?? Why This Is Important

This incident underscores a critical aspect of cybersecurity: Third-Party Vendor Management. Your organization's security is only as strong as your weakest partner or vendor. An issue with a third-party vendor can lead to significant vulnerabilities, impacting your operations and exposing you to risks.

?? C-Suite, Boards, and Owners: You can be held personally liable and accountable if it is demonstrated that you did not take appropriate actions to protect your company and customers, especially if necessary funding was intentionally withheld.

?? Risk Mitigation: Effective vendor management helps reduce risks associated with data breaches, supply chain disruptions, and regulatory compliance issues ---

? 9 Actions to Take Now

1. Review Vendor Contracts: Ensure your contracts include clauses that hold your vendors (external partners) accountable for any disruptions caused by their services.
2. Conduct Regular Audits: Regularly audit your third-party partners to ensure they comply with your security standards.
3. Implement a Risk Management Plan: Develop and implement a comprehensive Third-Party Risk Management plan that also includes contingencies for external partner-related issues.
4. Invest in Monitoring Tools: Use tools and services to monitor your performance and security practices continuously.
5. Educate Your Team: Ensure your team understands the importance of a Third-Party Risk Management plan and is equipped with a strategy to manage external partner-related risks effectively.
6. Verify and Vet Vendors: Regularly evaluate your Third-Party Risk Management plan annually. Ensure your partners have the credentials, security plans, and essential requirements to protect their company and yours from potential issues. It's a partnership.
7. Establish Incident Response Plans: A Good Third-Party Risk Management has a clear incident response plan that includes steps for dealing with all incidents, including third-party-related disruptions.
8. Engage in Continuous Improvement: Regularly update and improve your Third-Party Risk Management practices with the board and C-Suites involvement based on feedback and evolving industry standards.
9. Foster Strong Relationships: Building solid and transparent relationships with your outside partners ensures better communication and faster resolution of issues.

?? Remember: Effective Third-Party Risk Management is not just about cost savings but also about safeguarding your organization against potential risks. Stay vigilant and proactive in managing your third-party relationships to ensure your company and your customers remain secure and resilient.

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