62% of data breaches come from third-party vendors. For media networks, this means the companies they rely on - like cloud providers, ad tech platforms, or IT service providers - could be their biggest cybersecurity risk. Without proper vendor due diligence, sensitive data like intellectual property, customer information, and advertising details are at risk of exposure.
To protect your network, vendor due diligence evaluates third-party vendors' security, compliance, and operational practices. Here's what it helps with:
- Safeguarding sensitive data: Identify and fix security gaps before they’re exploited.
- Reducing financial and reputation risks: Avoid the average $4.9 million cost of a breach.
- Ensuring compliance: Meet legal regulations like GDPR and SOC 2.
- Streamlining vendor management: Save time by using automated tools like SecurityScorecard or UpGuard.
With 73% of organizations reporting disruptions from third-party incidents in recent years, vendor due diligence isn’t optional - it’s essential for protecting your media network. Read on to learn how to evaluate vendors, monitor risks, and secure your operations.
What is Vendor Due Diligence in Media Networks
Vendor Due Diligence Definition
Vendor due diligence (VDD) involves thoroughly assessing a vendor's cybersecurity measures, financial health, and operational stability. The goal? To safeguard against data breaches caused by third-party cyberattacks. For media networks, this is especially critical due to their reliance on sensitive assets like intellectual property, customer information, and advertising data.
VDD isn’t a one-time task - it’s an ongoing process applied to both existing and potential vendors during onboarding. This continuous approach reflects the reality that vendor-related risks are a constant concern for media networks. With this foundation in mind, it’s easier to pinpoint which types of vendors require closer examination.
Common Vendors in Media Networks
Identifying the types of vendors that media networks typically work with helps highlight where vulnerabilities might emerge.
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Cloud Providers
These vendors store massive amounts of content and data. A security lapse here could lead to devastating breaches. -
Ad Tech Platforms
Handling millions of advertising transactions and audience data, these platforms often connect to numerous external systems, which increases their exposure to cyber threats. -
Content Delivery Networks (CDNs)
CDNs are essential for delivering media content efficiently across the globe. However, their extensive infrastructure and access to content systems make them prime targets for cybercriminals aiming to disrupt services or inject harmful content. -
Software Suppliers
From content management tools to analytics platforms, software suppliers are vital. But they also pose risks, as seen in the 2020 SolarWinds attack, where malware was embedded into network management software, compromising thousands of businesses and government systems. -
IT Service Providers
These vendors often have privileged access to critical systems for support purposes. A stark example is the 2013 Target breach, where hackers exploited network credentials stolen from an HVAC vendor, exposing millions of customer records and causing significant financial and reputational harm.
Statistics paint a concerning picture: around 30% of media vendors present vulnerabilities, and media companies face double the risk compared to other industries. Additionally, half of content management vendors leave vulnerabilities unaddressed, with 60% of these systems remaining unpatched for as long as six weeks. This delay creates a wider attack window, increasing the likelihood of cascading security issues.
"In order to securely create and distribute content, the media industry relies on a large number of vendors and partners. Those vendors comprise an extended attack surface for media companies", explains Joel Molinoff, vice chairman of the strategic development group at BlueVoyant.
Core Elements of Cybersecurity Vendor Due Diligence
Vendor Risk Assessment
The first step in vendor due diligence is evaluating vendors based on their risk level and importance to your media network's operations. A thorough risk assessment helps measure how third-party vendors might impact your organization. This process should happen before onboarding any new vendors and continue as part of regular risk management practices. To get started, focus on these key steps:
- Pinpoint critical assets and vendors.
- Define your organization's risk tolerance.
- Generate security ratings.
- Distribute detailed questionnaires.
- Categorize vendors based on their criticality.
The frequency of these assessments depends on factors like the vendor's importance, regulatory updates, security incidents, and contract timelines. Vendors with higher risk - such as cloud providers managing sensitive content or ad tech platforms handling audience data - may need more frequent and detailed evaluations.
"UpGuard's Cyber Security Ratings help us understand which of our vendors are most likely to be breached so we can take immediate action." - Spaceship
Setting clear risk tolerance benchmarks allows you to prioritize vendor evaluations and address vulnerabilities efficiently. This proactive approach strengthens your media network's resilience against risks tied to third-party vendors.
Evaluating Data Protection and Security Controls
Once you've identified high-risk vendors, the next step is to assess their cybersecurity measures and data protection protocols. This goes beyond simply checking for certifications; it involves a deeper dive into how vendors manage your data and respond to potential threats. Research shows that 62% of network breaches involve third parties, and 72% of organizations have faced disruptions due to third-party relationships. In fact, third-party risks accounted for 31% of all cyber insurance claims in 2024.
When evaluating vendors, focus on these areas:
| Area | Key Questions |
|---|---|
| Security Controls & Practices | Does the vendor use strong authentication and role-based access controls? Is data encrypted both at rest and in transit? Are their incident response procedures documented? |
| Compliance & Certifications | Do they hold certifications like SOC 2 or ISO 27001, or meet HIPAA standards? Can they provide recent external audit reports? |
| Business Continuity & Disaster Recovery | How quickly can they recover after a disruption? Do they operate multiple data centers and perform frequent backups? |
| Data Security & Privacy | What policies govern the protection of sensitive data? How do they classify and prioritize data security? |
A risk-based approach helps tailor evaluations based on the vendor's role and access to data. Recent real-world incidents underline the importance of thorough assessments: in 2024, a ransomware attack on UnitedHealth Group disrupted healthcare payments, while a similar attack on CDK Global caused dealerships to lose an estimated $1 billion. In 2023, Progress Software's MOVEit file transfer software was targeted, affecting over 2,700 customers and leading to 144 lawsuits. Adding security ratings and continuous monitoring to your process can uncover hidden vulnerabilities in vendors' digital infrastructures.
"If the company can't or won't answer these questions, they are asking you to trust them based on very little evidence: this is not a good sign." - Electronic Frontier Foundation
Make sure to extend these evaluations to your vendors' own suppliers to address potential downstream risks.
Monitoring Fourth-Party Risks
Media networks often rely on vendors who, in turn, subcontract to others - introducing fourth-party risks. A security lapse at one of these fourth-party vendors can leave your network exposed.
According to Gartner, 60% of organizations work with over 1,000 third parties. Each of these vendors likely has its own network of suppliers, expanding your attack surface. To manage this risk, start by identifying critical fourth-party vendors through discussions with your primary vendors. Include questions about fourth-party risks in your due diligence process. Ongoing monitoring is key to spotting new cyber, business, and financial threats. Strengthen your defenses by adding contractual clauses that hold vendors accountable for their suppliers' security practices.
With 88% of boards now viewing cybersecurity as a business risk rather than just an IT issue, managing fourth-party risks is vital for staying compliant, avoiding financial penalties, and safeguarding your reputation. Tools like automated scanning systems and security ratings can offer additional insights into the security measures of your vendors' suppliers.
How Vendor Due Diligence Protects Media Networks
Safeguarding Sensitive Data and Intellectual Property
Media networks manage a treasure trove of sensitive content, audience data, and proprietary information - making them prime targets for cyberattacks. Vendor due diligence plays a critical role in protecting these assets by identifying potential security weaknesses before they can be exploited.
Consider this: 62% of data breaches originate from third-party vendors. A 2019 study by the Ponemon Institute revealed that 59% of companies had experienced a vendor-related data breach in the preceding year. These numbers highlight how even one vulnerable vendor can put unreleased content or subscriber data at risk.
To counter these threats, media networks need strong due diligence practices. For example, vendors can be categorized based on their access to sensitive information. Providers like cloud storage services, content delivery networks, and ad tech platforms - those handling critical assets - should undergo the most stringent evaluations. Tools like security ratings and continuous monitoring are indispensable for spotting vulnerabilities early.
Networks, including platforms such as The B2B Ecosystem, stand to gain significantly from thorough vendor assessments. Beyond just data security, these practices protect operational stability and uphold the reputation of the organization.
Minimizing Business and Reputation Risks
Vendor due diligence isn't just about cybersecurity - it’s also about safeguarding your brand and bottom line. The financial consequences of a data breach can be staggering. In the U.S., the average cost of a breach in 2022 was approximately $9.44 million. One notable example occurred in 2019, when a major streaming service suffered a third-party breach that led to reputational damage, reduced quarterly earnings, and a drop in stock prices.
By implementing regular vendor audits and monitoring, media networks can catch issues early and ensure vendors adhere to best practices. This proactive stance helps prevent operational disruptions, data leaks, and reputational fallout. It also sends a strong message to stakeholders and regulators: data security is a top priority.
Ensuring Compliance with Legal and Regulatory Standards
Vendor due diligence also plays a key role in meeting legal and regulatory requirements. Non-compliance can lead to hefty fines and legal challenges, so keeping a close eye on vendor practices is essential for adhering to ever-evolving standards.
The regulatory environment is growing more complex, with 19 comprehensive state privacy laws already in place and more on the way. Due diligence ensures that vendors meet critical requirements, such as those outlined by HIPAA, GDPR, and SOC 2. It also involves checking for necessary certifications and confirming there are no violations of labor or human rights laws.
Standardizing due diligence policies, conducting regular reviews, and documenting findings creates a solid compliance framework. This documentation not only demonstrates to regulators that your organization is taking vendor oversight seriously but can also help reduce penalties if issues arise.
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Best Practices for Vendor Due Diligence
Using Automated Risk Management Tools
Automated tools have revolutionized vendor due diligence, making the process faster and more efficient compared to manual assessments. These tools simplify onboarding, monitor vendor activities, and address risks effectively, saving time and resources.
Modern Vendor Risk Management (VRM) platforms come equipped with features that cover the entire vendor lifecycle. These include attack surface monitoring, risk assessment management, automated questionnaires, compliance tracking, and cybersecurity reporting. For instance, SecurityScorecard's automation technology can cut down vendor questionnaire completion times by as much as 83%.
AI-powered tools are particularly valuable in reducing manual workloads. They automatically identify and flag risks, using machine learning to detect patterns, predict vulnerabilities, and offer actionable insights that might otherwise go unnoticed. According to a survey, 61% of CISOs believe AI could prevent over half of third-party breaches.
"We use Vanta for VRM, which helps us immensely. The AI feature pulls out the most important details so we don't have to spend time combing vendor documentation word for word." – Mandy Matthew, Lead Senior Security Risk Program Manager, Duolingo
When choosing a VRM platform, it’s essential to match the tool to your organization’s needs. For example:
- UpGuard: Known for its accurate risk scoring and user-friendly interface, it excels at lifecycle management.
- SecurityScorecard: Offers detailed risk assessments with strong visualization tools, though the interface can feel overwhelming at first.
- OneTrust: Ideal for smaller organizations focused on automation and regulatory compliance.
- Bitsight: Provides extensive vendor profiling, making it a great choice for larger enterprises.
For businesses managing diverse vendor relationships - like media networks with multiple digital properties - comprehensive VRM tools are indispensable for handling varied risk profiles across different units.
Setting Clear Contract Security Requirements
Technical assessments are just one piece of the puzzle; strong contractual terms are equally critical for enforcing security standards. Ambiguity in contracts can lead to significant security gaps. For media networks, having specific, enforceable security requirements in vendor contracts is non-negotiable.
Contracts should clearly define security standards, such as compliance with frameworks like SOC 2 or ISO 27001. They must also outline key elements like data protection protocols, access controls, encryption requirements, and breach notification timelines.
Key components to include in vendor contracts:
- Data Protection Requirements: Specify how data should be handled and safeguarded.
- Incident Response Timelines: Vendors should notify you of security incidents within 24 to 72 hours, depending on severity.
- Continuous Monitoring Obligations: Ensure vendors commit to ongoing security checks.
- Liability Definitions: Clearly outline who is responsible in case of a breach.
Contracts should also require vendors to extend these same security standards to their subcontractors. A notable example is the December 2023 AT&T case, where a third-party telecom company failed to delete customer data as required, exposing information from over 8.9 million customers and resulting in a $13 million FCC fine.
Work closely with your legal team to set clear risk thresholds and outline remediation timelines. Define what constitutes acceptable risk levels and specify actions to take if a vendor's security posture falls short. Continuous monitoring ensures these standards are upheld over time.
Continuous Monitoring and Regular Reviews
Vendor security isn’t a “set it and forget it” process - it demands constant attention and regular updates as new threats and vulnerabilities emerge.
Automated monitoring tools are invaluable for keeping tabs on vendor security in real time. These systems issue alerts for changes in security ratings, identify new vulnerabilities, and flag suspicious activities that could signal a potential breach.
Regular reviews are equally important. Most vendors should be reviewed quarterly, while high-risk ones may require monthly assessments. These reviews should evaluate metrics like uptime, security controls, incident response times, and compliance rates. Additionally, incorporating feedback from front-line teams can help identify issues early.
Thorough documentation of monitoring efforts, assessment results, and remediation activities is a must. Not only does it demonstrate compliance with regulations, but it also provides valuable insights for future vendor management decisions.
The key to successful continuous monitoring lies in balancing automation with human expertise. While automated tools handle routine tasks and generate alerts, human analysts bring context, investigate anomalies, and make strategic decisions about vendor relationships. This combination ensures a well-rounded approach to vendor security.
Conclusion
Key Benefits Summary
Vendor due diligence serves as a powerful safeguard for media networks, offering more than just risk assessment - it lays the groundwork for a resilient and sustainable business strategy.
Protecting data and securing finances are among the most immediate benefits. With 62% of data breaches originating from third-party vendors, rigorous vendor screening becomes essential for safeguarding sensitive information and intellectual property. Media networks that prioritize thorough due diligence can avoid the staggering costs of breaches, potentially saving millions in damages.
Compliance with regulations is also made easier through structured vendor oversight. As industries face stricter rules, a well-executed due diligence program helps media networks meet legal requirements while steering clear of hefty fines. This approach proves especially valuable during audits or regulatory investigations.
Streamlined operations are another advantage. Centralized vendor management through a standardized due diligence process reduces the time and resources needed to onboard new vendors. It also ensures consistent evaluation across partnerships, leading to cost savings and faster, more informed decision-making.
Stronger negotiating leverage emerges when media networks fully understand the risks their vendors pose. With this insight, they can secure better contract terms, negotiate pricing more effectively, and set higher security standards - turning vendor relationships into strategic assets.
"Vendor due diligence is a basic aspect of operational and financial responsibility to your stakeholders, and the backbone of your third-party risk management (TPRM) activities." - Pivot Point Security
These benefits collectively enable media networks to adopt a proactive and dynamic approach to managing vendor risks.
Final Thoughts on Risk Management
Effective risk management hinges on taking a proactive stance, and vendor due diligence is a cornerstone of this strategy. In a world where 72% of organizations report major disruptions due to third-party relationships, staying ahead of risks is no longer optional.
As highlighted, comprehensive vendor due diligence does more than protect data - it shapes strategic operational decisions. Media networks must adopt a forward-looking mindset that blends cutting-edge tools with skilled human oversight. The most successful organizations implement continuous monitoring, maintain detailed records, and regularly refine their assessment methods to tackle new risks as they arise.
Though technology evolves, the fundamentals remain constant: know your vendors, assess their risks, and maintain ongoing vigilance. Media networks that commit to these principles today will build the strong, adaptable partnerships they need to succeed in the digital landscape of tomorrow.
Investing in robust vendor due diligence delivers measurable benefits - reduced risk, better compliance, and stronger vendor relationships. For media networks managing sensitive data and complex digital operations, thorough vendor oversight is not just a best practice; it's a critical component of long-term success.
AdTech Confidential: Mastering Vendor Due Diligence and Privacy with Richy Glassberg
FAQs
How can media networks decide which vendors need the most thorough due diligence?
Media networks can streamline their due diligence process by focusing on vendors that pose the greatest risks. Start with those who have access to sensitive data or critical systems, as any vulnerabilities here could have serious consequences. It's also important to evaluate a vendor's financial stability - you need partners you can count on to maintain uninterrupted operations.
Vendors providing essential services or products that are key to your network's daily activities should be another area of focus. On top of that, ensure they meet all regulatory requirements to steer clear of compliance headaches, and take a close look at their track record for any history of breaches or incidents. Lastly, weigh their reputation and reliability, prioritizing those with a solid commitment to security and dependable performance. By honing in on these areas, you can better manage resources and safeguard your network from potential risks.
What are some effective automated tools for streamlining vendor due diligence in media networks?
Automated tools play a key role in making vendor due diligence more efficient for media networks by speeding up risk assessments and enhancing accuracy. Here are a few standout options:
- START: This platform automates vendor risk management tasks, cutting down on time and resource demands for media networks.
- Bitsight: Delivers a streamlined solution for automating third-party risk evaluations and onboarding processes.
- SecurityScorecard: Specializes in automated cybersecurity assessments and risk ratings, strengthening vendor management strategies.
By minimizing manual work and ensuring consistent, reliable evaluations, these tools help protect digital media networks from potential risks and vulnerabilities.
How can media networks reduce risks from subcontracted vendors and their partners?
Media networks can reduce risks associated with subcontracted vendors and their partners - often referred to as fourth parties - by taking a proactive approach to risk management. This starts with vendor contracts that demand transparency about subcontractor relationships, including any changes that might affect sensitive data. It’s also important to regularly review the risk management practices of third-party vendors to ensure they’re effectively overseeing their own subcontractors.
Another key step is maintaining an up-to-date inventory of critical fourth parties, particularly those essential to operations. This allows media networks to focus their monitoring efforts where it matters most, strengthening their defenses against potential cybersecurity threats within their extended vendor ecosystem.
