GRC Visionary | Cybersecurity & Data Privacy | AI Governance | Pioneering AI-Driven Risk Management and Compliance Excellence
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Let’s say you’re a newly hired Third-Party Risk Analyst at a mid-sized healthcare company. During your onboarding, you realize that while they have dozens of vendors handling sensitive patient data (think billing companies, cloud services, and telehealth providers), they have no formal third-party risk assessments documented. First, you would start by building a basic Third-Party Inventory. You’d gather a list of all vendors, what services they provide, and what kind of data they have access to. You would focus on vendors that touch patient records (Protected Health Information, or PHI) because HIPAA requires stricter handling for that kind of data. Next, you would create a simple vendor risk rating system. For example, any vendor handling PHI = High Risk, vendors with financial data = Medium Risk, vendors with only public data = Low Risk. You’d organize vendors into those categories so leadership can prioritize attention. Then, you would prepare a basic Due Diligence Questionnaire to send out. It would ask things like: • Do you encrypt PHI data in transit and at rest? • Do you have a current SOC 2 report? • Have you had any breaches in the last 12 months? After collecting responses, you would review them and flag any vendors who seem high-risk (like no encryption, no audit reports, or recent breaches). You’d recommend follow-ups, like contract updates, requiring security improvements, or even switching providers if needed. Finally, you would propose setting up a recurring third-party review schedule — maybe every 6 or 12 months — so that vendor risk stays managed continuously, not just one time.