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During the week of August 25-31, when Hurricane Harvey [1] made landfall in Texas, retail sales in Houston dropped 59% compared to the previous week, and total consumer spending fell 42.5%. Following Hurricane Katrina, about 19,000 New Orleans-area businesses shut down forever (source: Census Bureau).
Before outsourcing your business processes or striking some other deal with vendors, you do need to assess the risks they pose. If your vendor needs to meet a compliance standard or regulation, check recent security audits to review how well it manages compliance with that standard. What Are the Most Common Vendor Risks?
Site content audits and script monitoring also help manage and minimize the risks of third-party scripts and plugins. Does the vendor outsource any IT services to fourth parties that can increase risk exposure? Access to Personally Identifiable Information. Does the vendor perform penetration testing and vulnerability scans?
On top of that, these suppliers themselves outsource their material to second-tier suppliers. Other approaches include using encryption, implementing strict access controls, and regular monitoring and auditing systems. This chain of activities results in an increasingly complex, geographically vast, and multi-tiered supply network.
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