Like most large-scale organizations, colleges and universities often rely on a network of third-party vendors for day-to-day business operations. These vendors may handle various tasks, ranging from hospitality and food services to facility management and IT infrastructure.
Regardless of the services they provide, third-party vendors can introduce serious security risks if a college or university does not utilize a robust vendor risk management program. These security risks can include devasting data breaches, cyber attacks, disruptions to business operations, and more.
Vendor risk management (VRM) can be made easier by technology solutions that automate steps and streamline time-consuming processes. This blog explores technology solutions to enhance vendor risk management programs and how they can specifically help colleges and universities looking to improve their VRM processes.
Why do universities need vendor risk management?
Higher education institutions are a consistent target for cybercriminals because of the large amount of sensitive data they collect and use. Additionally, colleges and universities utilize an extensive network of service providers for various business operations, some of which may not use appropriate information security or cybersecurity practices—making them additional targets.
Vendor risk management is the process of managing and monitoring security risks resulting from third-party vendors, IT suppliers, and cloud solutions. Higher ed institutions need vendor risk management practices for a variety of reasons, including:
- Protecting sensitive data: Universities manage sensitive information, such as student/staff records, research data, and finances. Vendors access this data through cloud storage, IT systems, etc. VRM ensures vendors maintain data security to prevent breaches and unauthorized access.
- Maintaining compliance: Universities must comply with regulations like FERPA, HIPAA, and GDPR. A VRM program helps ensure vendor compliance, reducing the risk of penalties and reputational damage.
- Operational continuity: External vendors are crucial for university functions such as IT infrastructure, food services, and facility management. VRM helps identify potential risks that could disrupt operations and ensure reliable services.
- Cost management: An effective VRM program helps universities evaluate vendor contracts, manage costs efficiently, identify potential risks early, and prevent unforeseen expenses.
- Strategic decision-making: Strong vendor partnerships improve collaboration and service quality. VRM provides reliability and performance insights, helping universities select the right partners and maintain standards.
- Reputation management: Universities require high ethical and academic standards. Vendor misconduct can harm their reputation. VRM programs monitor vendor practices to ensure alignment with the university's values.
- Evolving threat landscape: As cyber threats evolve, universities need a proactive approach to assess and respond to risks. VRM helps identify evolving risks and ensure timely responses.
Vendor risk management can be an overwhelming process, especially if an organization is starting from scratch or unsure of how best to optimize the different elements of an effective VRM program.
Technology solutions for vendor risk management are designed to streamline the individual components of a VRM program while creating an easy way to respond to and manage vendor risks comprehensively.
Technology solutions for vendor risk management
Colleges and universities looking to enhance their VRM programs should explore technology solutions designed to streamline workflows and automate different elements of vendor risk management, from contract management to vendor assessments. It is essential to prioritize specific components of vendor risk management based on your institution's goals and outcomes.
Below are some common technology solutions recommended for higher education institutions looking to streamline their vendor risk management programs.
Third-party risk management platforms
Third-party risk management platforms can automate and centralize higher education vendor assessment processes. These platforms provide a dashboard for data collection and risk scoring, eliminating manual processes. Comprehensive dashboards and visualizations prioritize high-risk vendors, and automated follow-ups minimize disruptions.
These platforms continuously monitor vendors’ cybersecurity posture, financial stability, and compliance, proactively responding to potential threats. Advanced reporting features simplify compliance and provide accurate audit trails. Third-party risk management platforms safeguard sensitive data, improve efficiency, and cultivate strategic vendor partnerships, making them a valuable technology solution for any vendor management program.
How UpGuard helps
UpGuard Vendor Risk is a third-party risk management platform that delivers instant vendor insights, 360-degree assessments, and time-saving workflows all in a centralized dashboard.
UpGuard Vendor Risk includes all the necessary components for a robust VRM program, including security ratings, automated vendor discovery, vendor risk assessments, and end-to-end workflows. It allows you to utilize absolute visibility of your entire vendor library, assess vendors faster with automation tools, and scale your VRM program over time.
Explore all of UpGuard Vendor Risk features here >
Cybersecurity rating services
Cybersecurity rating services help higher education institutions manage their vendor risk, from the procurement process through vendor offboarding. These services scan and analyze vendor networks to identify potential risks and vulnerabilities across various domains. Universities can use the ratings to evaluate the security posture and level of risk of current and potential partners, prioritize resources for high-risk vendors, and track progress over time. Automated alerts notify universities of significant changes in ratings or cybersecurity risks, enabling them to take quick action to reduce exposure and enhance data protection.
The ratings provide comprehensive and real-time security insights based on external factors like public data breaches, system misconfigurations, and exposed databases. They complement internal assessments, enhance vendor due diligence processes, and assist universities in enforcing compliance with security standards and regulatory requirements. Ultimately, these ratings facilitate more transparent, strategic, and risk-conscious vendor relationships, improving the overall security of higher education networks.
How UpGuard helps
Instantly understand your vendors’ security posture with UpGuard’s data-driven, objective, and dynamic security ratings.
Our security ratings are generated through the analysis of trusted commercial, open-source, and proprietary threat intelligence feeds and non-intrusive data collection methods. Instantly understand your vendor’s overall security posture and take advantage of custom notifications that provide you with instant alerts when a vendor’s rating drops.
Check out more information about UpGuard’s security ratings here >
Compliance management services
Compliance management software automates the tracking and enforcement of regulatory requirements, making it ideal for higher education vendor risk management programs. These services allow for centralized, real-time monitoring of all vendors, with customizable templates and workflows that simplify compliance checks. Automated alerts notify procurement and risk management teams of potential violations, allowing them to take immediate remedial actions. The software seamlessly integrates with vendor risk assessment and monitoring tools, with advanced reporting capabilities that simplify audit preparation.
By providing a clear overview of vendor compliance, the software enables better decision-making regarding vendor selection, contract renewals, and partnership strategies. Ultimately, it helps universities maintain regulatory compliance and avoid legal and reputational risks.
How UpGuard helps
Accelerate your compliance management process by using UpGuard’s powerful and flexible security questionnaire tools.
UpGuard’s meticulously designed questionnaire library means you no longer have to create questionnaires from scratch. Utilize questionnaires based on industry-standard regulations (ISO 27001, NIST CSF, SIG Lite) or build your own with our questionnaire builder. Automated security questionnaires allow you to get deeper insights into your vendors’ regulatory compliance, and scale your security team by 10x.
Explore more about UpGuard’s security questionnaire features here >
Vendor due diligence and assessment services
Vendor due diligence and assessment services enhance higher education VRM programs by providing a systematic evaluation process for selecting and monitoring vendors. These services include in-depth questionnaires, background checks, and risk scoring based on cybersecurity, financial stability, and regulatory compliance. By automating data collection and analysis, they streamline the due diligence process, enabling faster, data-driven decisions.
Vendor due diligence and assessment services also continuously monitor vendor networks for any new vulnerabilities or compliance breaches, provide real-time alerts and remediation recommendations, and maintain comprehensive documentation of assessments and corrective actions. With such services, universities can minimize third-party risks, build strategic partnerships, and protect their academic reputation while adhering to stringent policies and regulatory standards.
How UpGuard helps
UpGuard offers managed vendor risk assessment services, partnering your organization with an UpGuard analyst and automating vendor assessments.
Deeply experienced in cyber risk, your UpGuard analyst brings a wealth of knowledge to your assessments, bolstering your team’s analytical prowess. UpGuard’s actionable reports lead the industry in quality, reliability, and ease of use, bringing a new level of precision to your vendor assessments. UpGuard analysts manage every aspect of vendor communication and analysis, ensuring you get insights—and can take action—sooner.
Learn more about UpGuard’s managed vendor risk assessment services here >
AI-driven monitoring tools
AI-powered monitoring tools provide continuous real-time insights into vendor risk posture, helping universities identify potential vulnerabilities and non-compliance issues quickly. These tools automate the monitoring process, reducing the need for manual checks and freeing up staff for strategic analysis.
AI-driven monitoring tools integrate seamlessly with VRM platforms, enabling swift responses to evolving threats and proactive measures to strengthen an institution's resilience. Continuous monitoring is a necessity for any VRM program, and utilizing artificial intelligence enhances this process by quickly scanning a vendor’s attack surface to identify any potential cybersecurity threats that could affect a higher education institution.
How UpGuard helps
UpGuard Vendor Risk’s monitoring features go beyond simple scanning mechanisms. Take advantage of security ratings, third-party risk monitoring, and four-party risk monitoring across supply chains with our robust monitoring capabilities.
Track vendor performance over time and get real-time insight into your vendor’s security performance, misconfiguration, and risk profile with our continuous monitoring features. UpGuard also offers fourth-party monitoring ability, meaning you can get instant insight into your supply chain and reduce risks along the way.
Explore more of UpGuard’s continuous monitoring features here >
Take advantage of always-on vendor risk management with UpGuard
UpGuard Vendor Risk is a third-party risk management platform designed to automate and streamline the vendor risk management process, including helping organizations conduct vendor risk assessments within a TPRM program.
By leveraging technology to simplify the often complex and time-consuming task of evaluating vendor risks, UpGuard Vendor Risk helps organizations efficiently assess, monitor, and mitigate risks associated with their vendors and suppliers. Additional Vendor Risk features include:
- Customizable templates: UpGuard provides customizable questionnaire templates that users can tailor to meet specific industry standards, regulatory requirements, and organizational risk profiles.
- Bulk distribution and tracking: Vendor Risk enables the distribution of questionnaires to multiple vendors simultaneously and tracks the progress of each questionnaire, sending reminders and updates as necessary.
- Centralized vendor information: UpGuard centralizes all vendor information, including questionnaire responses, in a single platform, making it easier for organizations to access, review, and analyze vendor data.
- Automated risk scoring: UpGuard automatically scores vendors based on their questionnaire responses and other relevant data, which helps organizations quickly assess vendor risk levels and prioritize follow-up actions.
- Continuous monitoring: Vendor Risk monitors vendors’ cybersecurity postures and alerts users to changes or emerging vulnerabilities. Real-time visibility into vendor risks helps organizations respond swiftly to potential threats before they become incidents.
- Compliance management: UpGuard Vendor Risk helps vendors reach regulatory compliance with relevant regulations and standards (like GDPR, HIPAA, and SOC 2), tracking vendors’ certification statuses and identifying gaps or issues that need addressing.
- Collaborative features: Vendor Risk facilitates collaboration between internal teams and vendors, enabling seamless communication and efficiently resolving identified issues or risks.
- Comprehensive reporting: UpGuard provides detailed reports and dashboards that offer insights into the organization’s overall vendor risk landscape, which can be used for internal risk management purposes and to demonstrate compliance to stakeholders, auditors, and regulators.
