What Is Third-Party Code Risk?

Third-Party Code Risk is a core advanced GRC concept that every cybersecurity and GRC professional should understand.

What Is Third-Party Code Risk?

Third-Party Code Risk refers to the practices, processes, or technologies related to third-party code risk within the context of information security and risk management. Understanding third-party code risk helps organizations protect their systems, data, and operations from relevant threats.

How It Works

Third-Party Code Risk is applied through a combination of policies, technical controls, and organizational procedures. Security teams implement third-party code risk as part of a broader security program aligned to industry frameworks and regulatory requirements.

Why It Matters

Organizations that correctly implement third-party code risk reduce their exposure to cyber risk, improve regulatory compliance, and strengthen their overall security posture.

Key Takeaways

  • Understand what third-party code risk is and how it applies to your organization’s security program.
  • Align third-party code risk practices to a recognized framework such as NIST CSF, ISO 27001, or CIS Controls.
  • Regularly review and test controls related to third-party code risk to ensure they remain effective as threats evolve.