Third-Party Risk Management In Healthcare: A Critical Role


The healthcare sector, with its vast repositories of sensitive patient information, has become a prime target for cybercriminals. According to research, over one-quarter (28%) of all data breaches occurred within healthcare organizations, outpacing other sectors like financial services.

A particularly concerning aspect is that 35% of these healthcare breaches were linked to third-party vendors, underscoring the critical importance of third-party risk management in healthcare.

This trend highlights the critical need for third-party risk management in healthcare as a top priority for Chief Information Security Officers (CISOs). Implementing healthcare cybersecurity best practices is essential to safeguarding sensitive patient data and maintaining regulatory compliance.

As cyberattacks across the healthcare supply chain continue to rise, CISO strategies for healthcare security must evolve to address these complex challenges, focusing on mitigating third-party risks that could expose organizations to significant threats.

Why is Third-Party Risk Management in Healthcare Important?

Third-party risk management in healthcare has emerged as a critical component of a robust cybersecurity strategy due to the increasing reliance on external vendors for essential services. The integration of third-party services, such as electronic health records (EHR) management, telemedicine platforms, cloud storage, and medical devices, undoubtedly improves operational efficiency.

However, it also significantly heightens the risk of cyberattacks, as even a minor security flaw in a third-party vendor’s system can have catastrophic consequences for the healthcare provider.

An example of this vulnerability is the cyberattack on Change Healthcare, a major provider of business and pharmacy operations services to the healthcare industry. This cyberattack proved devastating, causing widespread disruption and financial loss across hospitals, doctors, and medical groups due to delayed payments. Industry experts have labeled it one of the most damaging cyberattacks ever to hit the healthcare sector, illustrating the severe risks posed by third-party breaches.

Hospitals and healthcare organizations face not only financial repercussions from such breaches but also significant risks to patient safety.

This is why third-party risk management in healthcare has become a top priority for CISOs. By ensuring that all external partners adhere to strict security standards, CISOs can better protect sensitive patient data and maintain the integrity of their organization’s security posture. Implementing CISO strategies for healthcare security that focus on thorough vetting, continuous monitoring, and strict compliance with security protocols is essential to mitigating the risks associated with third-party vendors.

Healthcare Cybersecurity Best Practices

CISOs in healthcare must adopt a multi-layered approach to cybersecurity, ensuring that best practices are not only implemented within their organization but also extended to third-party vendors. This includes the following:

  • Vendor Security Assessments: Conduct thorough security assessments of all third-party vendors before entering into any agreements. This should include evaluating their data protection techniques, compliance with industry regulations, and the robustness of their security infrastructure.
  • Continuous Monitoring: Implement continuous monitoring of third-party vendors to detect any changes in their security posture. This allows for the timely identification and mitigation of potential risks before they can impact the healthcare organization.
  • Contractual Obligations: Ensure that all third-party contracts include specific cybersecurity requirements, such as adherence to HIPAA regulations, data encryption standards, and incident response protocols.

Other CISO Strategies for Healthcare Security Are

  • Risk Scoring Methods for Healthcare Security: Implementing a risk scoring system allows CISOs to quantify the level of risk associated with each third-party vendor. This method involves evaluating various factors, such as the sensitivity of the data handled by the vendor, the vendor’s security history, and the potential impact of a breach. A higher risk score would indicate a need for stricter security controls and more frequent assessments.
  • Segmentation and Access Control: Limit third-party access to only the necessary parts of the network. This minimizes the potential damage in case of a breach and ensures that sensitive healthcare data is only accessible to those who absolutely need it.
  • Security Awareness Training: Extend security awareness training to third-party vendors, ensuring that they understand the specific threats facing the healthcare industry and the best practices to mitigate them.

Healthcare Data Protection Techniques

Protecting healthcare data is a top priority for CISOs, and this responsibility extends to any third-party vendors handling such data. Key data protection techniques include:

  • Data Encryption: Ensure that all data, whether at rest or in transit, is encrypted using industry-standard encryption methods. This is particularly important when data is being transferred between the healthcare organization and a third-party vendor.
  • Data Minimization: Encourage third-party vendors to practice data minimization, collecting and storing only the data necessary for their services. This reduces the risk of exposure in case of a breach.
  • Regular Audits: Conduct regular audits of third-party vendors to ensure that they are adhering to the agreed-upon data protection standards. These audits should include a review of access logs, encryption practices, and overall security measures.

Conclusion

CISOs must remain vigilant in managing third-party risks. By implementing strong risk-scoring methods for healthcare security, enforcing strict data protection techniques, and extending healthcare cybersecurity best practices to third-party vendors, CISOs can significantly reduce the risk of breaches and ensure the safety of patient data. As the healthcare industry continues to rely on third-party services, effective risk management strategies will be crucial in maintaining trust and compliance in this highly regulated sector.

Moreover, Cyble provides a strong third-party risk management tool for healthcare that helps to secure digital assets by actively monitoring and managing potential entry points across web and mobile apps, cloud devices, domains, email servers, IoT devices, and public code repositories.  By leveraging healthcare platforms can achieve effective third-party risk reduction for hospitals and strengthen their cybersecurity measures.

Explore how Cyble can assist in cybersecurity for healthcare and ensure a comprehensive approach to third-party risk management in healthcare.

Schedule a Demo Today!



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