Every business today relies on third-party apps for its critical and non-critical functions. Depending on its size and operations, some companies may choose to create in-house apps for their critical functions, while others may find it easier to buy or subscribe to multiple third-party apps and integrate them into the tech stack for seamless operations. Even those companies using in-house apps will likely use third-party apps for non-critical functions.
Given this extensive usage of third-party apps, how can you ensure they comply with the applicable laws and regulations?
Why is Third-party App Compliance a Challenge?
When businesses use third-party apps, they are responsible for making sure those apps meet specific standards. These could be legal regulations like GDPR, HIPAA, or internal data security policies. The goal is to protect sensitive data, control who can access it, and avoid security risks. Failing to comply with these regulations can lead to:
- Data breaches, as unprotected or poorly managed third-party apps, can expose sensitive company or customer data.
- Non-compliance with regulations like GDPR or CCPA can result in hefty penalties.
- Losing customer trust can be costly in the long run.
The critical challenge is that a business will never have complete control over the operations of third-party app providers, and this could increase the risk of non-compliance. At the same time, spending dedicated resources for monitoring these apps is not a practical solution for many organizations.
To address these concerns, businesses turn to tech platforms like Zluri.
Zluri, a popular SaaS management platform, helps businesses manage third-party apps effectively. One of its main focuses is compliance with internal policies and external regulations along with risk assessment, automation, and security.
Zluri’s Key Strategies for Effective Compliance
Zluri offers many features that make third-party application compliance easier to manage. Here are its key strategies:
Complete App Discovery and Inventory
One of the first steps to achieving compliance is knowing which apps are being used in the company. Many times, employees sign up for apps without going through the proper channels (this is called shadow IT). This can lead to potential compliance gaps, as these apps might not meet the company’s security or privacy standards.
Zluri solves this by automatically scanning the company’s network to discover all SaaS apps in use, even those the IT department might not be aware of. This way, the compliance team can get a full picture of every app being used and whether they meet compliance standards. With all the apps in one place, it’s easier to manage risks and take action when necessary.
Risk Assessment and Management
Not all third-party apps are created equal—some come with higher risks than others. Zluri’s platform helps businesses assess the security and compliance risks associated with each app.
For each app, Zluri checks the following:
- Does the app encrypt data? How does it protect sensitive information?
- Does the app comply with industry regulations like SOC 2, ISO 27001, or GDPR?
- Has the app’s vendor experienced any security incidents or data breaches?
Based on the answers to the above questions, Zluri assigns a risk score to each app. Using this risk score, companies can prioritize which apps need closer attention or stricter controls. High-risk apps can be flagged for review, restricted, or even removed if they don’t meet the necessary standards.
Automated Compliance Processes
Manually tracking compliance for dozens (or even hundreds) of apps is nearly impossible. Zluri simplifies this with automated workflows. These processes ensure that every app goes through the necessary checks before it’s approved for use.
For example, when a new app is added, Zluri can automatically review its security features and verify whether it complies with regulations like GDPR or CCPA. If the app fails any of these checks, Zluri will alert the compliance team to take further action. This automation helps businesses maintain ongoing compliance without requiring constant manual intervention, saving time and reducing the risk of human error.
Role-Based Access Control (RBAC)
Controlling who has access to what data is an important part of compliance. With Zluri, companies can enforce strict access controls using Role-Based Access Control (RBAC). This means only authorized employees can access sensitive data within third-party apps. Businesses even have the option to:
- Define roles for employees based on their responsibilities.
- Assign permissions to these roles, ensuring only the right people have access to certain data.
- Regularly audit these roles and permissions to make sure they stay compliant with security policies.
With such measures, businesses can minimize the risk of data breaches and ensure they meet compliance requirements.
Tracking Vendor Certifications
For companies to remain compliant, it’s not enough to just trust that an app is secure. They need to verify that the app’s vendor has the necessary certifications. Zluri helps by tracking these certifications. Specifically, it checks compliance with SOC 2 for security controls, ISO 27001 for information security management, HIPAA for healthcare data protection, GDPR for data privacy in Europe, and more.
Moreover, Zluri keeps a record of these certifications and sends alerts when they’re about to expire or if a vendor fails to renew them. This way, companies can ensure they’re always working with compliant vendors and avoid potential compliance risks.
Audit Logs and Reports
Maintaining compliance isn’t just about following the rules. It’s also about proving compliance when needed. Zluri provides detailed audit logs that track all activity related to third-party apps. These logs include information like:
- Which apps were added or removed
- Changes to access permissions
- Security incidents or breaches
These logs are critical during audits, as they help businesses demonstrate compliance with internal policies and external regulations. Zluri’s reporting features also allow compliance teams to generate custom reports, which can be used to show auditors how the company is managing its SaaS applications.
With such features, Zluri makes it easy for businesses to stay on top of third-party app usage and ensure that these apps comply with the prevailing standards and regulations.
Final Words
Managing third-party application compliance can be challenging, especially as companies increasingly rely on SaaS apps to run their operations. However, with tools like Zluri, businesses can take control of their app usage, ensure compliance, and minimize risks. Zluri’s features like app discovery, risk assessment, automated workflows, access control, vendor tracking, and audit logs make it easier for companies to stay on top of compliance without the heavy manual workload. This proactive approach to compliance avoids penalties and security breaches while building trust with customers, regulators, and other stakeholders.
Try Zluri today to manage compliance for your third-party apps.