The Importance of Third-Party Risk Management in the Cloud: Navigating the Shared Responsibility Model

In today’s hyper-connected digital landscape, cloud computing has revolutionized the way organizations operate. From increased scalability to operational efficiency, the benefits are undeniable. However, with this shift comes a new array of cybersecurity challenges, particularly when it comes to managing third-party risks and understanding the shared responsibility model.

What Is the Shared Responsibility Model?

Cloud service providers like Amazon Web Services (AWS) operate under a “Shared Responsibility Model,” a foundational concept that defines where cloud provider responsibilities end and where the customer’s begin.

In the AWS model:

• AWS is responsible for security of the cloud, meaning the physical infrastructure, hardware, software, networking, and facilities that run AWS services.
• The customer is responsible for security in the cloud, which includes data encryption, access management, operating system configurations, network controls, and application security.

This model provides flexibility and scalability, but it also places a significant security burden on the customer, especially when third-party services and vendors are added to the equation.

Why Third-Party Risk Management Is Critical

While AWS (or any cloud provider) ensures that their infrastructure is secure, they have no visibility or control over how customers configure their environments or how third-party tools interact within those environments. Each third-party integration, whether it’s a SaaS app, a managed service provider, or a software plugin, introduces a new set of risks. Some of these risks include:

• Data leakage due to poorly secured APIs or misconfigured permissions.
• Vendor compromise, where an attacker exploits a vulnerable third-party provider.
• Compliance violations, especially in regulated industries where third-party access must be tightly controlled and auditable.

Without a proactive third-party risk management (TPRM) strategy, organizations can unknowingly open doors to cyber threats, data breaches, and regulatory penalties — even when the core cloud infrastructure is secure.

Best Practices for Managing Third Party Risk in the Cloud

To strengthen your cloud security posture, consider implementing the following:

• Conduct thorough vendor assessments before onboarding third parties.
• Map responsibilities clearly using the shared responsibility model as a guide.
• Regularly review and audit access controls, usage logs, and vendor security practices.
• Use automated tools to continuously monitor for vulnerabilities or risky behavior.
• Integrate TPRM into your broader GRC framework to ensure alignment with business objectives and compliance mandates.

How We Can Help You

At Gilliam Security, we understand that navigating cloud security and third-party risk can be overwhelming, especially when balancing compliance, operational efficiency, and threat mitigation.

As a leader in vCISO services and penetration testing, Gilliam Security empowers organizations to take control of their cloud environments with confidence. Our services include:

• Cloud Security Assessments aligned with the AWS Shared Responsibility Model.
• Third Party Risk Management Programs tailored to your industry and regulatory needs.
• Third Party Security Reviews to ensure your partners meet your security standards.
• Penetration Testing and Red Teaming to uncover and address vulnerabilities across your cloud ecosystem.
• GRC Integration that aligns your cloud strategy with your risk tolerance and business goals.

Don’t let third party risk become your weakest link. Partner with Gilliam Security to protect your cloud investments and ensure your security responsibilities are met — and exceeded.

Contact us today to schedule a consultation and learn how we can help you build a more secure, compliant, and resilient cloud environment.