Third-Party Risk Management: Moving from Reactive to Proactive

In today’s interconnected world, cyber threats are more sophisticated, with 83% of cyberattacks originating externally, according to the 2023 Verizon Data Breach Investigations Report (DBIR). This has prompted organizations to rethink third-party risk management. The 2023 Gartner Reimagining Third Party Cybersecurity Risk Management Survey found that 65% of security leaders increased their budgets, 76% invested more time and resources and 66% enhanced automation tools to combat third-party risks. Despite these efforts, 45% still reported increased disruptions from supply chain vulnerabilities, highlighting the need for more effective strategies.

Information vs Actionable Alerts

The constant evolution and splintering of illicit actors pose a challenge for organizations. Many threat groups have short lifespans or re-form due to law enforcement takedowns, infighting and shifts in ransomware-as-a-service networks, making it difficult for organizations to keep pace. A countermeasure against one attack may quickly become outdated as these threats evolve, requiring constant adaptation to new variations.

In cybersecurity, information is abundant, but decision-makers must distinguish the difference between information and actionable alerts. Information provides awareness but does not always drive immediate action, whereas alerts deliver real-time insights, enabling quick threat identification and response. Public data and real-time alerts help detect threats not visible in existing systems, allowing organizations to make proactive defense adjustments.

Strategies for Managing Third-Party Risk

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Managing third-party risk has become a critical challenge. The NIST Cybersecurity Framework (CSF) 2.0 emphasizes that governance must be approached holistically and highlights the importance of comprehensive third-party risk management. Many organizations rely on vendor surveys, attestations and security ratings, but these provide merely a snapshot in time and are often revisited only during contract negotiations. The NIST CSF 2.0 calls for continuous monitoring—a practice many organizations follow, though it is often limited to identifying trends and anomalies in internal telemetry data, rather than extending to third-party systems where potential risks may go unnoticed. Failing to consistently assess changes in third-party risks leaves organizations vulnerable to attack.

Many contracts require self-reporting, but this relies on the vendor detecting breaches, and there is no direct visibility into third-party systems like there is with internal systems. Understanding where data is stored, how it is handled and whether it is compromised is critical, but organizations often struggle to continuously monitor these systems. Government organizations, in particular, must manage their operations with limited budgets, making it difficult to scale with the growing number of vendors and service providers they need to oversee. Threat actors exploit this by targeting smaller vendors to access larger organizations.

Current strategies rely too heavily on initial vetting and lack sufficient post-contract monitoring. Continuous monitoring is no longer optional—it is essential. Organizations need to assess third-party risks not only at the start of a relationship but also as they evolve over time. This proactive approach is crucial in defending against the ever-changing threat landscape.

Proactively Identifying Risk

Proactively identifying and mitigating risks is essential for Government organizations, particularly as threat actors increasingly leverage publicly available data to plan their attacks. Transparency programs, such as USAspending.gov and city-level open checkbook platforms, while necessary for showing how public funds are used, can inadvertently provide a playbook for illicit actors to target vendors and suppliers involved in Government projects. Public data often becomes the first indicator of an impending breach, giving organizations a narrow window—sometimes just 24 hours—to understand threat actors’ operations and take proactive action.

To shift from reactive to proactive, organizations must enhance capabilities in three critical areas:

  1. Speed is vital for detecting threats in real time. Using AI to examine open source and threat intelligence data helps organizations avoid delays caused by time-consuming searches.
  2. The scope of monitoring must extend beyond traditional sources to deep web forums and dark web sites, evaluating text, images and indicators that mimic official branding.
  3. While real-time information is essential, excessive data can lead to alert fatigue. AI models that filter and tag relevant information enable security teams to focus on the most significant risks.

Proactively addressing third-party risks requires organizations to stay prepared for immediate threats. By leveraging public data, they can strengthen defenses and act before vulnerabilities are exploited.

While self-reporting and AI tools are valuable, organizations must take ownership of their risk management by conducting their own due diligence. The ability to continuously monitor, identify and mitigate risks presents not just a challenge but an opportunity for growth and improvement. Ultimately, it is the organization’s reputation and security at stake, making proactive risk management key to staying ahead of today’s evolving threats.

To learn more about proactive third-party risk management strategies, watch Dataminr’s webinar “A New Paradigm for Managing Third-Party Risk with OSINT and AI.”

Carahsoft Technology Corp. is The Trusted Government IT Solutions Provider, supporting Public Sector organizations across Federal, State and Local Government agencies and Education and Healthcare markets. As the Master Government Aggregator for our vendor partners, including Dataminr, we deliver solutions for Geospatial, Cybersecurity, MultiCloud, DevSecOps, Artificial Intelligence, Customer Experience and Engagement, Open Source and more. Working with resellers, systems integrators and consultants, our sales and marketing teams provide industry leading IT products, services and training through hundreds of contract vehicles. Explore the Carahsoft Blog to learn more about the latest trends in Government technology markets and solutions, as well as Carahsoft’s ecosystem of partner thought-leaders.

Why OSINT is Crucial to Having a Comprehensive Security Strategy

The landscape of intelligence gathering has evolved dramatically since the 1990s and early 2000s. Back then, accessing and utilizing information effectively was a major challenge, especially for Government agencies tasked with monitoring threats. Intelligence gathering was often a manual process, with significant gaps in communication and real-time analysis. Today technology has bridged those gaps, and organizations are more equipped than ever to gather and act upon threat intelligence.

At the heart of this evolution is open source intelligence (OSINT). OSINT refers to the collection and analysis of information that is publicly available from a variety of sources, such as websites, social media platforms, blogs, news outlets and more. This data is processed to derive actionable insights for decision making, security operations and threat detection. By leveraging OSINT, organizations can gather, analyze and deliver real-time data to enhance security and operational effectiveness.

Leveraging OSINT

When it comes to cyber operations, effectively leveraging OSINT can provide a significant advantage. Without strong intelligence, it becomes difficult to move from strategic planning to tactical and operational execution. Threats often begin long before a hacker breaches a network, with adversaries gathering intelligence on their targets over time. A holistic approach is critical—whether focusing on offensive or defensive cyber strategies—because gaps in understanding can lead to vulnerabilities and unintended consequences.

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A useful framework for understanding OSINT’s role is the information-to-risk pyramid. At its base, monitoring and telemetry are essential for providing context to potential threats. Many organizations rely on the Common Vulnerability Scoring System (CVSS), a standardized framework for evaluating and ranking the severity of software vulnerabilities, to help prioritize and address the most critical risks first. However, this system alone may not provide a complete picture. Integrating additional intelligence can reveal that vulnerabilities are actively exploited, making them far more dangerous.

Once threats are identified, organizations can bring in key stakeholders to formulate strategic responses. Risk owners, often from the business side, play a critical role alongside IT in decision-making. Government agencies, with their vast networks and resources, face these challenges on an even larger scale. In today’s environment seconds matter, and OSINT plays a pivotal role in crafting strategic plans to mitigate risks in real time.

The Human Factor

While technology plays a crucial role in OSINT, the human factor remains just as important. Analysts are at the heart of making OSINT actionable, reviewing alerts and correlating information. Integrating intelligence through application programming interface (API) calls can enhance this process, allowing organizations to combine telemetry data with open source information (OSIF).

Networks in large organizations are complex, generating thousands of security information and event management (SIEM) alerts daily, leading to alert fatigue. In such environments, timely responses are crucial. Adversaries can breach networks quickly, often within hours, so the ability to act decisively is vital to preventing significant losses. By focusing on critical alerts rather than false alarms, analysts can address the real threats.

Aligning OSINT tools with governance, risk management and compliance (GRC) can help organizations reduce vulnerabilities and enhance their overall security resilience. By understanding risks, organizations can effectively apply technology to secure their assets and ensure uninterrupted operations.

The Cost of Inaction

Turning gathered intelligence into actionable insights is vital, particularly for safeguarding critical infrastructure. As highlighted by FBI Director Christopher Wray, advanced persistent threats (APTs) are increasingly targeting essential sectors like energy, water and transportation. Today’s cybercriminals are no longer just interested in attacking networks to boast about their successes; they are targeting specific organizations.

Beyond direct attacks, adversaries may also infiltrate networks to understand how organizations and systems operate. Networking devices—especially in small office and home (SoHo) environments—are often the weakest links, frequently overlooked despite their vulnerability. While organizations regularly patch servers and monitor critical systems, these networking devices, particularly near sensitive areas like military bases or airports, can be soft targets. Once compromised, attackers can use local IP addresses to stay within the network, gathering information to plan more sophisticated attacks.

Furthermore, the threats extend beyond financial loss. Data privacy and the long-term impact of breaches must also be considered. Publicly traded companies face regulatory scrutiny from agencies like the Securities and Exchange Commission (SEC) and Federal Trade Commission (FTC). With new regulations such as Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA) on the horizon in 2025, organizations will be required to report incidents promptly. Failing to protect sensitive data can result in costly fines and reputational damage, long after the breach has been resolved.

The Future of Cybersecurity is Proactive

Cybersecurity is a continuous operation that requires vigilance and adaptability. In an era where adversaries are patient and highly organized, an organization’s ability to identify and respond to threats effectively enables them to be not only reactive but proactive, addressing risks before they become crises. OSINT is no longer optional; it is a strategic necessity for organizations aiming to protect their assets, reputation and future.

To learn more about harnessing OSINT to enhance situational awareness, intelligence gathering and strategic decision making watch Recorded Future’s webinar “The Importance of OSINT in Defense Operations.”