Third Parties: Balancing Value-Add and Risk
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Third Party Privacy: Balancing Value-Add and Risk
According to our customers, the main challenges their businesses are subject to include:
- Regulations—both external and internal
- Reputation judgments from the marketplace they serve
- Limited budgets
Regarding the latter, limited headcount budgets do not translate into less demand on the internal teams that serve the market. Rather, businesses will turn to outside parties for help, for example, data processing, data analytics, and communications with individuals with PI.
These third parties add significant value. At the same time, our recent benchmark report shows that they can add risk to the business as well. Our 2024 privacy incident management benchmarking report shows that when a data breach of private information occurs within a third party, the notification obligations increase nearly 2.5X.
When caused by a external business entity, the requirement to notify is nearly 2.5X higher at 15.5%.
There’s no way around the environment that you live in, so you have to adapt and take the appropriate actions to thrive. In the case of a business’ use of third-party services, a risk assessment of a potential provider is a no-brainer. Having a privacy incident management process in place also seems obvious. Waiting until an incident has occurred to start preparations just doesn’t make sense in our current regulatory climate.
To discover all of the opportunities to prepare and mature your Privacy program in a climate of ever-increasing and changing regulations, download the 2024 RadarFirst Privacy Incident Management Benchmarking Report. The report highlights the numerous benefits and ROI our customers are realizing by being prepared for the inevitable privacy incident with RadarFirst’s intelligent privacy incident management solution.
