Cyberattacks Are The New Normal
We live in a world where cyberattacks are commonplace. Whether it’s an attack on government systems or your personal identity, we are all affected by these incidents. Therefore, no industry or individual is immune, and ransomware, data breaches, phishing, and social engineering attacks will continue to be an ever-evolving threat across organizations.
In fact, Black Kite published an article stating that healthcare organizations are the most common industry sector targeted by bad actors. These actors take advantage of vulnerable healthcare systems struggling from the COVID-19 pandemic, which makes them more susceptible to an attack. Additionally, the U.S. Department of Human Health Services alerted this sector that a pro-Russian group called Killnet updated their target list to include healthcare organizations.
Although there are many cybersecurity professionals who exist solely to consult and advise organizations on how to protect their infrastructure against these attacks, how can you mitigate risks by implementing a sound vendor management program?
Why Vendor Management?
When we speak to healthcare organizations about vendor management, they say:
- “I don’t think we do much, maybe just contracts.”
- “Oh no, we don’t have a vendor management program.”
- “We do something, but it’s all on spreadsheets.”
- “We are not required to do this.”
Some industries are required to have robust vendor management programs, such as financial institutions. However, healthcare organizations should not feel they are exempt. Vendor management is required by the HIPAA Security Rule and is scrutinized during SOC 2 and HITRUST audits, and firms will call out the lack of sound vendor management policies and procedures. Therefore, these programs do play a crucial role in everyday operations.
Nevertheless, depending on the scale, when a cyberattack occurs you may receive alerts from credible sources. Without an accurate and up-to-date vendor inventory, it might be difficult to know whether your organization is impacted. However, it is not uncommon for hospital systems to have hundreds of vendors. In some cases, cyberattacks may occur with fourth-party vendors or vendors of your third parties. That’s why understanding the supply chain for at least your critical vendors is important.
The Importance of a Vendor Management Program in Healthcare
As cyberattacks, regulatory changes, and more continue to impact healthcare institutions, below we detail the top five reasons why it is vital to implement a robust vendor management program on top of the current cybersecurity landscape:
1. Patient Data Security and Privacy
Healthcare organizations deal with sensitive patient information, making data security and privacy a top priority. A robust vendor management program ensures that third-party vendors handling patient data comply with security and privacy regulations, such as the Health Insurance Portability and Accountability Act (HIPAA). This helps in preventing data breaches and maintaining the trust of patients.
2. Regulatory Compliance
Healthcare is a highly regulated industry with numerous compliance requirements, such as HIPAA, HITECH, and contractual requirements like HITRUST. Vendor management programs assist organizations in ensuring that their vendors comply with all relevant regulations. This includes not only data security and privacy, but also other healthcare regulations that may apply to specific services or products.
3. Operational Continuity
Dependence on external vendors for various services and products is common in the healthcare sector. A vendor management program helps in assessing, and mitigating risks associated with vendor performance and reliability. This ensures operational continuity by identifying potential issues before they impact the delivery of healthcare services.
4. Cost-Efficiency and Performance Optimization
Effective vendor management helps healthcare organizations optimize costs by evaluating the performance of vendors against predefined benchmarks. This involves regularly assessing the value provided by vendors and negotiating contracts to ensure competitive pricing. By monitoring vendor performance, organizations can identify opportunities for improvement and cost savings.
5. Risk Management
Healthcare organizations face various risks, including financial, operational, and reputational risks. A robust vendor management program enables organizations to identify and manage these risks associated with third-party relationships. This includes assessing the financial stability of vendors, understanding their business continuity plans, and having contingency measures in place to address potential disruptions.
How Wolf Can Help
At Wolf, we have the knowledge and experience to help any organization create a vendor management program. Our industry-focused expertise in the healthcare sector and beyond, positions us to assist you in every step of the vendor management lifecycle. Whether you are seeking an opportunity to improve your existing program or implement a new one, reach out to a member of our team today to schedule a free consultation call.
