RiskRecon gets acquired by Mastercard. CyberGRX gets $40 million in Series D funding bringing their total equity financing to $100 million. Security Scorecard raised $50 million in Series D funding and doubled their customer base in 2019, now having more than 1,000 global customers. Panorays raises $15 million in Series A funding.
These are just a few of the headlines from 2019, with many of them coming in just the last 30 days. I am sure we will continue to see more invest and growth in 2020. As the old saying goes “Follow the Money.” If we follow the money it paints a clear picture that Third-Party Data Monitoring Tools, to mitigate the residual risks of working with third-party vendors, have arrived and will be a core component of best-practice based vendor/third-party risk management programs for years to come.
Gone are the days of doing one due diligence questionnaire per year with a vendor and hoping that nothing goes wrong until the next questionnaire is due to be filled out. Hope is not a strategy!!
With data privacy and cybersecurity risk driving significant new regulatory compliance combined with the growth in reliance on working with third-party vendors, companies face the daunting task of how to most economically manage and mitigate the risks associated with these third parties.
It is not an accident that we are seeing all of these headlines about the money flowing into these third-party data monitoring companies. If you live by the proverb “where there is a will, there is a way” you can understand that the emergence of these new technology companies comes in direct response to the massive growth in third-party risk that companies of all sizes and in all industries are facing.
As you look to develop or assess & improve a third-party risk management program in 2020, make sure to give serious consideration to these cyber risk and corporate health data monitoring tools. By integrating these tools into your program, you’ll ensure you are actively monitoring and mitigating the residual risk associated with working with your third parties.
Give serious thought to adding one or more third-party data monitoring tools in 2020 to support a more continuous approach to mitigating risks and managing your third-party relationships. The good news is that costs associated with these types of tools are expected to become more commoditized as the category for these types of companies continues to grow and mature.