WEBVTT

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Welcome to the KuppingerCole Analysts Chat.

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I'm your host.

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My name is Matthias Reinwarth.

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I'm an analyst and advisor at KuppingerCole Analysts.

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My guest today is Warwick Ashford.

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He is a senior analyst working with all

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things identity and access and much more out of the

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UK.

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Hi, Warwick.

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Good to see you.

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I'm Matthias.

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Good to be here.

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Great to have you.

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And the starting point is some research that you just published.

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And it's a topic that is interwoven in many things that we currently do at KuppingerCole.

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We are adding new identity types to our identity fabric.

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We are looking at different life cycles of these identities, be they non-human, be they

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human.

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And your topic was third-party and third-party access to systems within organizations.

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First of all, maybe before we start, how would you define third-party access?

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What is that actually?

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Simply stated, third-party access, and in this case governance, it was third-party access

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governance that I was looking at.

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It means that you're controlling and monitoring

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what external users like contractors, suppliers,

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or partners can access inside your organization systems.

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So when you let someone from the outside of

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your organization into your network or systems,

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even if it's just for a short time, you need to know who they are, you need to be able

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to limit what they can do, you need to monitor

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what they're doing, and you need to make sure

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that you remove their access when it's no longer needed.

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So that's exactly what third-party access governance helps with.

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And I think it's important in the context of identity-centric security, because this

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focuses on protecting systems by managing and securing digital identities, not just

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networks or devices.

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So in this model, the biggest risk is

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unauthorized or excessive access by anyone, especially

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outsiders.

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So third-party users are often the weakest link because they don't work for you.

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You can't fully control them.

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They might use shared or reused credentials,

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or they might need temporary or limited access,

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but they get too much.

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So without proper governance, third parties can accidentally or intentionally cause data

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breaches, ransomware infections, or some system disruptions.

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Right.

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And you've already mentioned it partially.

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So they are under different lifecycle processes because you inherit them from somewhere.

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But you said you wrote about third-party access governance.

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So that means that these are different types of systems.

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And how do they differ from internal identity governance?

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Well, I think they're different to internal identity governance because internal IAM is

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designed around HR-driven workflows and user lifecycle events like JML processes, right?

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And also third-party access lacks these triggers and oversights mechanisms.

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External users are often onboarded manually via unstructured sort of means and processes

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like from spreadsheets or email invitations.

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And then that means that governance practices such as recertification, policy enforcement,

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audit logging, which are standard for internal identities are typically absent or sort of

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fragmented for third-party users.

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The question often is also, why?

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Why are we talking about that now?

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Have things changed that people, that organizations are more involving third parties?

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Is this kind of changing supply chain?

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What is behind that?

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Well, I just think in today's kind of

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hyper-connected world, organizations are kind of dealing more

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with external organizations.

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And so I think the biggest problem is that in many organizations, third-party identities

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are now often outnumber internal users,

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particularly in industries that rely on things like, as

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you mentioned, supply chains, outsourced development or services.

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And these external entities frequently gain

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access to sensitive systems without the consistent

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processes as I mentioned earlier for onboarding, identity proofing, and certification.

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So this inconsistency results in stale credentials, excessive entitlements.

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I think that's one of the big problems is people get too much access to too much.

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And then this creates like invisible access pathways, creating an expanded attack surface

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that's often exploited in breaches because the bad guys know this.

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And they know that people aren't paying much attention.

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That's where they go to work.

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Right.

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And when I look at customers or organizations

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in general, we are talking to many organizations.

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I will not give any names, of course, but often external users are just maintained within

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the regular IAM for purposes.

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For example, if I maintain them myself, I have a better control, which I would disagree

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with.

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But when it comes to the architectural

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limitations, do traditional IAM systems limit the management

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of third-party users?

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Well, as I mentioned already, most IAM systems

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are designed for employees and known partners

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within the organizational boundary, within the controls.

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So there's a lack of organizational identity structures.

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So traditional IAM systems operate on a flat identity model and they don't support N-tier

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ecosystems.

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And there's limited delegation.

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They fail to provide mechanisms for delegated governance, which is essential for managing

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access across external organizations.

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Also traditional IAM, the identity proofing and

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onboarding, they rely on a sort of a structured

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thing, whereas I mentioned earlier, the third party, it's unstructured.

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And so this creates a credential sprawl.

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Also there's infrequent certification.

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So these systems rely on a kind of a point in time reviews.

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And so they miss the access changes that happen in between.

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And finally, they lack cross-organizational P-back and R-back policy enforcement.

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So this again leads to over-permissive access.

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Right.

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I've mentioned that in the beginnings, we are thinking where we love to think of identity

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systems as being constructed following the concept of the identity fabric.

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And our colleague Jonathan Kerr was here a few

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weeks ago and he talked about the cybersecurity

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fabric.

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How can these models be beneficial to support third party access governance?

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Do they help?

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Do they allow for integration?

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Well, absolutely.

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But I think in this bit of research that I did, one of the interesting things that came

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out for me was that in a way, third party access governance, I think should be thought

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of in terms of being an evolution of the identity and security fabric.

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So it's the same idea.

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It's just going beyond by recognizing.

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So the identity fabric must, if you look at the identity fabric, it must evolve from

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a user-centric approach to an organizational aware model.

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So it's not just about user, but talking about a wider organization.

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And it needs to include third party

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onboarding, delegated approvals, policy inheritance and

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lifecycle orchestration.

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And it also must accommodate federated

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identity sources and manage access across multi-tier

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partner ecosystems.

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So that's the identity side of things.

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And then the security fabric needs to integrate

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with the identity fabric to provide cross-tenant

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logging sort of behavioral analytics and policy enforcement.

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So they should be able to detect analogous behavior and trace access violations across

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external systems rather than just internally.

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So think of third party access governance as governance overlay.

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It acts as a dedicated governance layer, so to speak, that bridges the gaps between

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both fabrics.

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So it bridges the security and identity fabrics

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and it provides capabilities like event-driven

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certification, delegated governance and risk-based access controls.

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So that enables visibility and governance beyond the enterprise.

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So I think that's just the best way to think of it is being able to see and govern what's

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going on beyond your enterprise, which is increasingly important because more and more

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now, I've been doing quite a bit around third party access failures.

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And I was surprised just how many breaches in recent times and going back the last 10

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years, where it's traced back to a third party.

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And so I just think this has never been more important.

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But we say that about most things, really.

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Exactly.

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And just everything what you said, if I think one year back, so we were discussing

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with many organizations and the dust has settled a bit, but the problem is not yet solved.

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Many organizations were talking about upcoming regulatory frameworks like DORA for finance

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or NIST for critical infrastructures, while the scope was immensely growing.

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I think everything that you said is part of these regulations.

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So having a proper control insight into what third parties, what your supply chain does

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within your systems is as important as what your own employees do.

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So is this a driver and does that shape the need for third party access governance and

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make you write this thing at least partially?

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Yeah, sure.

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Look, I think regulation is a very important driver, but even it's a good indicator of

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what should be the best practice, really.

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So what's great about the regulations that you mentioned is that they recognize that

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third party access is a board level risk.

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It's not just a technical detail that must be taken care of.

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This is something that can, so if you speak to the board of maybe Marks and Spencers,

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they might agree that third party risk is something that they will pay a little bit

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more attention to now that they are having to spend a couple of hundred million to recover

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from something that at the moment still looks like it was traced back to bad third party

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access.

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Specifically, DORA mandates that financial institutions govern the entire life cycle

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of third party ICT providers.

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So that includes continuous certification.

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This too requires identity centric security for all access relationships across critical

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infrastructure.

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And then the CMMC enforces identity

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verification, MFA and authorization life cycle for entities

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within the US defense supply chain.

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But more importantly, I think all the shared expectations across these frameworks, and

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I think this is what the end user

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organizations need to imbibe, is that identity verification

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for third parties is important.

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Strong authentication and continuous access certification is important.

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Policy based governance is tied to business relationships and risk levels.

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And finally, auditability and accountability for external user access.

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I think the days where boards or organizations are responsible only for the people within

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the walls, so to speak, of their organization or

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within, even if it's a multinational organization,

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it used to be sort of clearly defined.

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Back in the day too, in terms of when we had perimeter controls, the perimeter was ours

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and anything beyond that wasn't our problem.

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Things have changed and we've been talking about it for years, but businesses still seem

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to be struggling to implement this.

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I think we've understood it for a while and we've been talking about it for a long time,

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but I'm still seeing organizations where they just aren't doing things in a practical way

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to say, yes, we understand this, we get it.

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Okay.

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Let's assume that everybody who's listening right now understands that.

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They understand what you've mentioned, credential

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sprawl, entitlement drift, unstructured onboarding.

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What are some typical capabilities within these third-party access governance solutions

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that help organizations in actually addressing these risks?

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How do these solutions look like?

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Well, you mentioned credential sprawl, so a TPAG could enable an organization to, well,

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it kind of requires an organization to enforce phishing-resistant authentication.

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The push towards pass keys and use of FIDO-2

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compliant tools and methods, because it eliminates

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reliance on shared credentials and email-based invitations.

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I think that's the first thing in terms of credential sprawl.

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Then it also helps control entitlement drift,

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which as you know, and in your advisory business,

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this is a perennial problem with many

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organizations where people change roles and the entitlement

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just don't get updated.

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With TPAG, it's event-driven recertification, so it's triggered by status changes and it's

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linked to risk signals, so it automates, it ensures things like automated deprovisioning,

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so where access is no longer justified.

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If you change role, you leave organization, project ends, your access ends.

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It's no longer this kind of thing.

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It introduces the idea of structured onboarding for people beyond the organization, so it

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enables multi-tier onboarding, invalidating both users and their organizations.

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It incorporates identity proofing, document and biometric verification, and then also

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has delegated workflows.

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It also applies policy inheritance that I mentioned earlier to ensure that there is

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consistent enforcement across external organizations.

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These capabilities all ensure that external access reflects the current business context

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and not sort of outdated assumptions.

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It kind of helps the organizations keep pace with the reality that's out there rather than

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just a point in time.

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Right.

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That's really fascinating.

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I already come to my famous final question, as usual.

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If we think we are also here to educate and to raise awareness, if there are organizations

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out there who realize there is a gap in my security posture, in my identity fabric, I

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have not yet really thought of this

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third-party access because I'm not critical, because I'm

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not a financial institution, but I think I should do that.

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Before running and buying something, a solution, what would be – and that's the question,

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this famous last question – what would be a good first starting point to embark on that

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journey beyond tools?

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I think there are quite a number of things that organizations need to consider, but I

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think the most important thing is to treat third-party access as a governance domain,

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not sort of just an integration task.

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As we said earlier, third-party identities outnumber internal ones in many environments,

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and they often present a higher risk.

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I think it's just kind of that mindset change that I was talking about earlier is that you

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need to think beyond the organization.

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Managing access cannot be limited to provisioning accounts or federating logins.

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Governance must include onboarding assurance,

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delegated administration, lifecycle orchestration,

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and continuous certification.

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Just like in the cybersecurity world, there's

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got to be continuous verification that people

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that things are who they are and that things are being checked all the time.

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Actors or entities that are doing things need to be continually certified, and then extend

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your identity and your security fabric architectures with TAP capabilities, which we've

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been talking about.

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So really interesting, and it adds another facet to this identity fabric that we are

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talking about, adding these B2B customers, these – no, not customers, partners, everything

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that is outside organization and that need access to our internal systems, to our cloud

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access, whatever.

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So really interesting.

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Thank you very much, Warwick, for being here today, for telling really freshly from your

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just recent research around that topic.

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If people are interested, that paper is also available.

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We have Warwick's name.

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Just Google for him within our system and just try to find him.

00:16:59.300 --> 00:17:04.900
And there is lots of information around these topics and many other where Warwick provides

00:17:04.900 --> 00:17:08.600
research as a foundation for everything that Köppinger Co.

00:17:08.600 --> 00:17:09.300
does.

00:17:09.300 --> 00:17:11.647
If you have additional questions around that

00:17:11.647 --> 00:17:14.100
topic, and if you're watching this on YouTube,

00:17:14.100 --> 00:17:18.100
leave a comment in the comment section of this video, just below that video.

00:17:18.100 --> 00:17:23.200
If you are listening or watching this on any other platform, just reach out to us.

00:17:23.200 --> 00:17:25.300
We are happy to answer your questions.

00:17:25.400 --> 00:17:30.400
And if you have specific questions that might spawn another episode of this, why not?

00:17:30.400 --> 00:17:31.300
Let us know.

00:17:31.300 --> 00:17:32.500
We are interested in that.

00:17:32.500 --> 00:17:39.400
So third-party access governance sounds a bit dry and not boring, but challenging.

00:17:40.100 --> 00:17:44.600
But it's really an interesting topic, and I think many organizations are still beginning

00:17:44.600 --> 00:17:48.900
on that journey and trying to fulfill their requirements when it comes to that.

00:17:48.900 --> 00:17:51.500
Any final thoughts before we close down, Warwick?

00:17:51.500 --> 00:17:53.429
Yeah, I think it's just important to remember

00:17:53.429 --> 00:17:55.400
that having this third-party access governance

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ensures that external users are governed by the same principles like least privilege,

00:18:00.700 --> 00:18:03.041
strong authentication, and continuous

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certification as internal users, but with mechanisms designed

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specifically for inter-organizational contexts.

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And go do it now, today.

00:18:12.400 --> 00:18:13.500
Exactly, exactly.

00:18:13.500 --> 00:18:18.500
For those whom we just informed that there might be something to do, do it.

00:18:18.500 --> 00:18:20.300
So really starting there.

00:18:20.300 --> 00:18:23.400
And reading Warwick's paper might be a good starting point as well.

00:18:23.400 --> 00:18:25.400
Thank you, Warwick, for being my guest today.

00:18:25.400 --> 00:18:28.255
Looking forward to having you here again soon

00:18:28.255 --> 00:18:31.300
regarding your research or any other interesting

00:18:31.300 --> 00:18:32.700
topic that we cover.

00:18:32.700 --> 00:18:33.300
Thanks again.

00:18:34.000 --> 00:18:34.700
Thanks, Matthias.

00:18:34.700 --> 00:18:35.200
Bye.

00:18:35.900 --> 00:18:36.200
See you.

00:18:36.200 --> 00:18:37.200
Bye-bye.

