top of page
Search

NIS2 and Your Supply Chain: Why Manual Third-Party Risk Management is No Longer an Option

Updated: 6 days ago

ree

For European businesses in critical sectors, the arrival of the NIS2 and DORA directives has created a new reality. The focus of regulators has expanded beyond your own four walls and now extends to every single partner in your digital supply chain. Under these new laws, your supplier's security breach is now your legal problem.


Third-Party Risk Management (TPRM) — the process of monitoring and minimizing the risks from external partners — has transformed from a best practice into a legal imperative. As your organization grows and relies on more SaaS tools and service providers, managing this risk manually with spreadsheets and emails is not just inefficient; it's impossible.


Automation is the only viable path forward. Let’s explore how to automate your TPRM program to meet the demands of NIS2 and DORA.



Three Reasons Why Manual TPRM Fails in the NIS2 Era


  1. Legal Liability Has Shifted to You: NIS2 Article 21 explicitly requires "Essential" and "Important" entities to manage the security risks posed by their direct suppliers. This means you are legally responsible for conducting due diligence and ensuring their security posture meets specific standards. A spreadsheet cannot provide the auditable, real-time proof that regulators will demand.

  2. The Scale is Unmanageable: The average organization uses hundreds of applications and works with dozens of suppliers. Manually onboarding each one, reviewing their security policies, checking contracts, and tracking vulnerabilities is a full-time job for an entire team, a luxury most SMBs cannot afford.

  3. Static Checks Are Obsolete: A supplier who was secure yesterday might be vulnerable today. A one-time security questionnaire provides a snapshot in time, not a continuous view of risk. NIS2 requires ongoing risk management, which is impossible without real-time monitoring and automated checks.



What TPRM Processes Can DefendSphere Automate?


A modern GRC platform like DefendSphere can automate the entire TPRM lifecycle, from onboarding to continuous monitoring.

  • Automated Onboarding and Risk Scoring: Instead of emailing questionnaires, our platform automates the process, assigning an initial risk score based on the criticality of the supplier and the data they access.


  • AI-Powered Contract Analysis: Manually checking dozens of supplier contracts for specific security and compliance clauses is slow and prone to error. Our AI engine automatically reviews legal documents, flagging missing clauses required by NIS2/DORA and suggesting necessary amendments.


  • Continuous External Vulnerability Scanning: Don't just take their word for it. DefendSphere can continuously scan your suppliers' external-facing systems to identify real-world vulnerabilities, giving you an objective, evidence-based view of their security hygiene.


  • Centralized Real-Time Monitoring: Our platform provides a single dashboard where you can see the real-time compliance and security posture of every supplier. You can instantly see who meets your requirements, whose risk level has changed, and where you need to focus your attention.


  • Automated Evidence and Compliance Requests: Does a supplier's security certificate expire next month? Do you need them to implement a new security control as part of your NIS2 policy? Our platform automates these requests and tracks their fulfillment, creating a clear audit trail.



How to Build a Scalable TPRM Program for NIS2


Automating your TPRM program can bolster your entire GRC framework. Follow these steps to get started:


  1. Map Your Supply Chain: Identify all third parties with access to your networks or data and classify them by criticality.

  2. Define Your Security Baseline: Establish a clear, non-negotiable set of security requirements that all suppliers must meet, based on NIS2 and your risk appetite.

  3. Automate Everything Possible: Leverage a platform like DefendSphere to automate onboarding, contract analysis, technical scanning, and continuous monitoring.

  4. Integrate TPRM into Your GRC: Ensure that the risks identified in your supply chain are fed back into your overall risk register and compliance dashboards.



DefendSphere: Your Automated TPRM Co-Pilot


DefendSphere is designed to solve the supply chain compliance challenge for European businesses. Unlike traditional tools, we go further by combining automated evidence collection, AI-powered contract analysis, and continuous technical validation in one platform.


With DefendSphere's Third-Party Risk Management solution, you can finally move from chaotic spreadsheets to a system of automated control and continuous assurance.


Request a demo to see how DefendSphere can automate your TPRM processes and make you NIS2-ready.


Want to Know

More?



bottom of page