Fourth Party Risk Management Services
Safeguarding Your Supply Chain with Our Reliable Fourth-Party Risk Management
Get protected with our 4th party risk management services, designed to keep your business secure in an increasingly interconnected world. With 10X faster assessments, we provide rapid insights into potential risks, ensuring you can act quickly. Our services are also 70% more cost-effective than hiring a dedicated in-house team, allowing you to focus on your business while we handle the complexities of risk management. Plus, with 5X faster remediation, we help you resolve issues promptly, minimizing any disruption to your operations.
We also offer personalized assessments for your business needs. If you’re facing cybersecurity threats, compliance issues, or financial instability, we provide the insights to help you make better decisions for continued growth.
Stay ahead of hidden threats – secure your supply chain with our fourth-party risk management services.


Understanding Fourth-Party Risks
Fourth-party risks are the security vulnerabilities that can arise when your third-party vendors rely on other external services or subcontractors to handle sensitive data or provide critical technology infrastructure. These fourth parties might not be as visible or directly managed by you, but their cybersecurity practices or lack thereof can significantly impact your business.
For example, if your third-party vendor uses a cloud storage provider (the fourth party) to store your customer data, a data breach at that cloud provider could expose your business to risks such as data theft, loss of sensitive information, or legal consequences. Similarly, if your third-party vendor relies on a software development firm to build a crucial part of your system and that firm has poor security protocols, your entire system could be vulnerable to cyberattacks.
To manage these cyber risks, businesses need to ensure that not only their direct vendors but also their vendors’ vendors (the fourth parties) are following strong cybersecurity practices. This means assessing the security measures of all parties involved in handling your data, including encryption protocols, access controls, and vulnerability management.
Critical Risks We Monitor with Fourth Party Risk Management Services
To effectively monitor and manage these risks, we offer a comprehensive set of services that focus on ensuring your fourth parties follow best practices in cybersecurity, data protection, and regulatory compliance. Here’s how our 4th party risk management services handle each risk:
We help monitor and assess the access control mechanisms of your fourth-party vendors and subcontractors. This includes evaluating whether they implement proper authentication methods like multi-factor authentication (MFA) and ensuring that access is granted based on roles and responsibilities.
We conduct regular audits to identify gaps in access controls, providing recommendations to enhance security and ensure that only authorized individuals can access sensitive data, which reduces the risk of breaches.
Encryption protects sensitive data by making it unreadable to anyone without the correct decryption key. If your third-party vendors or their fourth-party providers use outdated or weak encryption methods, it becomes easier for cybercriminals to intercept and access critical information.
Our services include regular security reviews to ensure that your fourth-party providers use up-to-date encryption methods and follow the latest security protocols. We conduct vulnerability scans to detect any weaknesses in encryption or security measures and guarantee that encryption is applied consistently across all data, whether at rest or in transit, protecting it from interception or unauthorized access by cybercriminals.
We continuously monitor your fourth-party relationships for potential data infringements or leaks, such as - checking for unsecured storage, misconfigured cloud services, and any unusual data access patterns. We also set up alerts to notify us of any suspicious activities that could indicate a data leak, allowing for quick intervention to mitigate any potential damage.
Unpatched software vulnerabilities are one of the most common entry points for cybercriminals. We actively monitor and assess the software used by your fourth-party providers is regularly updated with the latest security patches to protect against malware infections and ransomware attacks.
Human mistakes and insider threats can pose significant risks to your business's cybersecurity. Malicious insiders may deliberately compromise data, while others with access can unintentionally cause violations, especially without proper security training.
By assessing the security practices of all parties, we can reduce the risk of insider threats. Our tracking tools help ensure that any suspicious activities are quickly identified and addressed.
If your vendors or subcontractors do not comply with these regulations, your business could face fines, penalties, and reputational damage.
At Beaconer, we ensure that your fourth-party subcontractors are fully compliant with relevant regulations such as the General Data Protection Regulation (GDPR), the Health Insurance Portability and Accountability Act (HIPAA), and the Payment Card Industry Data Security Standard (PCI DSS) and Central Consumer Protection Authority (CCPA).
Beaconer's Process For Fourth-Party Risk Management
Here’s how Beaconer’s process works to safeguard your business:
We maintain a centralized Information Hub in collaboration with vendors. This hub stores key data about your third- and fourth-party suppliers, making assessments faster, more accurate, and easier to manage.
Need an assessment? Just request it through our platform. Our system pulls data from the Information Hub and launches a detailed risk evaluation, ensuring all relevant details are covered.
Our platform continuously scans the web using advanced AI tools like natural language processing and machine learning. We track:
- Financial Stability: Spotting bankruptcies or financial troubles.
- Cybersecurity Threats: Detecting breaches or vulnerabilities in fourth-party systems.
- Compliance Issues: Monitoring adherence to regulations like GDPR, HIPAA, and PCI DSS.
- Reputation Risks: Identifying negative news or public sentiment about vendors.
Every risk assessment goes through rigorous checks by Certified Information Systems Security Professionals (CISSP) - certified professionals to guarantee high-quality, reliable results so you can trust the insights you receive.
All assessments for results are available in your personalized dashboard for transparency. With our 4th party risk management services, you can:
- Track progress in real time.
- Monitor ongoing remediation activities.
- Stay informed with regular updates.
Our platform provides complete visibility into your entire vendor network to uncover hidden risks and weak points. We ensure your supply chain is resilient and prepared for any challenges.
Risk management doesn’t stop after the first assessment. Our platform keeps monitoring your fourth-party vendors, so you’re always updated on new developments and growth without worrying about unexpected disruptions.
Protect your business from cyberattacks and data violations with our 4th party risk management services. Request a demo today here.
FAQs
A fourth party refers to the suppliers or service providers that your third-party vendors rely on to deliver their services or products. For example, if your IT vendor uses another company for data storage, that company is your fourth party. They’re not directly working with you, but their actions can still affect your business.
Even though you don’t work with fourth parties directly, their problems can become your problems. A data breach, financial trouble, or compliance issue at a fourth party can disrupt your business, harm your reputation, or cause legal and financial problems. Keeping an eye on these risks helps protect your business and customers.
4th party risk management is necessary in industries such as healthcare, finance, technology, and retail, particularly for handling sensitive data. Additionally, companies with intricate supply chains, where vendors rely on multiple layers of other suppliers, are especially susceptible to fourth-party risks.
If you don’t monitor fourth-party risks, you could face:
- Data Leaks: Your sensitive information could get exposed.
- Fines: Breaking compliance rules can cost you big money.
- Reputation Damage: Customers might lose trust in your business.
- Financial Losses: Fixing problems later can cost more than preventing them.
Managing fourth-party risks keeps your business running smoothly, protects your reputation, and helps you avoid unexpected surprises.
