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Introduction:
The days of treating third‑party risk management (TPRM) as a mere compliance checkbox are officially numbered. Eddie Dovzhik, CEO and co‑founder of Lema AI, has been vocal about this paradigm shift—urging organizations to move from passive attestation collection to active, continuous risk engineering. In a landscape where a single compromised vendor can unravel an entire enterprise, Dovzhik’s message resonates: treat third‑party risk as a security problem, not an audit exercise. This article distills the technical core of that philosophy, offering actionable steps, verified commands, and configuration guides to help security teams embed risk engineering into their daily operations.
Learning Objectives:
- Understand the fundamental difference between compliance‑driven TPRM and proactive risk engineering.
- Learn how to implement continuous vendor monitoring using open‑source and commercial tools.
- Master API security and cloud hardening techniques to mitigate third‑party attack surfaces.
- Gain hands‑on experience with Linux/Windows commands for vulnerability scanning and log analysis.
- Develop a framework for integrating AI‑driven decision support into your risk management workflow.
You Should Know:
1. Continuous Vendor Discovery and Attack Surface Mapping
Before you can secure your third‑party relationships, you must know exactly who your vendors are and what they can access. Traditional questionnaires and annual SOC 2 reviews are insufficient—they capture a static snapshot, not the dynamic reality of modern supply chains. Risk engineering demands continuous discovery: automatically identifying new vendors, sub‑processors, and exposed APIs.
Step‑by‑Step Guide:
Step 1: Enumerate active vendor domains using OSINT.
On Linux, use `amass` to discover subdomains associated with your known vendor domains:
amass enum -d vendor-domain.com -o vendor_assets.txt
For Windows, leverage `nslookup` and `Resolve-DnsName` in PowerShell to map IP ranges:
Resolve-DnsName -1ame vendor-domain.com -Type A | Select-Object IPAddress
Step 2: Scan for exposed services.
Use `nmap` to perform a fast port scan on discovered IP ranges, focusing on common administrative ports (22, 3389, 443, 8080, 8443):
nmap -sS -p 22,3389,443,8080,8443 -iL vendor_ips.txt -oA vendor_scan
Step 3: Correlate with certificate transparency logs.
Query `crt.sh` to find all certificates issued for your vendor’s domains—this often reveals shadow IT and forgotten subdomains:
curl -s "https://crt.sh/?q=%.vendor-domain.com&output=json" | jq '.[].name_value' | sort -u
Step 4: Build a dynamic inventory.
Feed this data into a CMDB or a dedicated TPRM platform (like Lema AI) that can alert you when new assets appear. The goal is to maintain a living map, not a quarterly spreadsheet.
2. API Security: The New Perimeter
Modern vendors expose APIs for everything—payment processing, identity federation, data synchronization. Each API endpoint is a potential entry point for attackers. Dovzhik’s team at Lema AI emphasizes that “vendor compliance reports are real? A SOC 2 in a box is built to help you pass audits”—but passing an audit doesn’t mean your APIs are secure.
Step‑by‑Step Guide:
Step 1: Inventory all vendor APIs.
Use `Burp Suite` or `Postman` to catalog endpoints. On Linux, `ffuf` can help discover hidden paths:
ffuf -u https://api.vendor.com/FUZZ -w /usr/share/wordlists/dirb/common.txt -fc 404
Step 2: Test for OWASP API Top 10 vulnerabilities.
Run `ZAP` (Zed Attack Proxy) in headless mode against your vendor’s API base URL:
zap-cli quick-scan -s all -t https://api.vendor.com/v1/
For Windows, use the GUI version or `OWASP ZAP` in daemon mode with PowerShell:
Start-Process -FilePath "C:\Program Files\OWASP\Zed Attack Proxy\zap.bat" -ArgumentList "-daemon -port 8080"
Step 3: Validate authentication and authorization.
Check for insecure direct object references (IDOR) by modifying parameters in API requests. Use `curl` to test horizontal privilege escalation:
curl -X GET "https://api.vendor.com/users/1234" -H "Authorization: Bearer $TOKEN" Change user ID to 1235 and observe if data is returned
Step 4: Implement continuous API monitoring.
Deploy a policy as code tool like `Open Policy Agent` (OPA) to enforce that all vendor APIs require mutual TLS (mTLS) and have rate limiting enabled. Example OPA rule:
package api.security
default allow = false
allow {
input.tls_version == "1.3"
input.rate_limit_remaining > 0
input.auth_method == "mTLS"
}
3. Cloud Hardening for Shared Responsibility
When you onboard a SaaS vendor, you are effectively extending your cloud footprint. Misconfigurations in vendor‑managed S3 buckets, IAM roles, or Kubernetes clusters can lead to data breaches that are technically “their fault” but financially and reputationally yours.
Step‑by‑Step Guide:
Step 1: Assess vendor cloud posture.
Request their CSPM (Cloud Security Posture Management) reports. If they use AWS, ask for a read‑only `Security Hub` integration so you can monitor their compliance score in real time.
Step 2: Validate IAM least privilege.
On your side, ensure that any cross‑account roles you grant to vendors have the strictest possible policies. Use AWS CLI to list and audit:
aws iam list-roles --query 'Roles[?contains(RoleName, <code>vendor</code>)]' aws iam get-role-policy --role-1ame VendorRole --policy-1ame VendorPolicy
Step 3: Enforce encryption at rest and in transit.
Verify that vendor‑managed storage uses customer‑managed keys (CMK) and that all traffic uses TLS 1.3. Use `testssl.sh` to check their endpoints:
testssl.sh --quiet --protocols https://vendor-saas.com
Step 4: Implement a cloud‑native firewall.
Deploy `Calico` or `Cilium` network policies in your own clusters to restrict egress traffic to only known vendor IP ranges. Example Cilium policy:
apiVersion: cilium.io/v2 kind: CiliumNetworkPolicy metadata: name: vendor-egress spec: endpointSelector: matchLabels: app: backend egress: - toServices: - k8sService: serviceName: vendor-proxy namespace: vendor
- Vulnerability Exploitation and Mitigation in the Supply Chain
Attackers increasingly target third‑party software dependencies and open‑source libraries. The Log4j and SolarWinds incidents are stark reminders that a vulnerability in a vendor’s code can become your zero‑day.
Step‑by‑Step Guide:
Step 1: Scan vendor‑provided containers and binaries.
Use `Trivy` to scan container images for known CVEs:
trivy image vendor/application:latest --severity HIGH,CRITICAL
On Windows, use `Docker Scout`:
docker scout cves vendor/application:latest
Step 2: Simulate exploitation in a sandbox.
Set up a isolated environment (e.g., `Firecracker` microVMs) and run `Metasploit` modules against your vendor’s staging API to validate their claims of “secure by design”:
msfconsole -q -x "use exploit/multi/http/vendor_rce; set RHOSTS staging.vendor.com; run"
Step 3: Establish a vulnerability disclosure program.
Require vendors to provide a signed SBOM (Software Bill of Materials) and commit to patching SLAs. Automate SBOM validation with syft:
syft vendor/application:latest -o spdx-json > sbom.json
Step 4: Implement runtime protection.
Deploy eBPF‑based tools like `Tetragon` to detect and block exploit attempts in real time, even if the vendor’s code is vulnerable. Example Tetragon policy to block remote code execution patterns:
apiVersion: cilium.io/v1alpha1 kind: TracingPolicy metadata: name: block-rce spec: kprobes: - call: "sys_execve" syscall: true args: - index: 0 type: "char_buf" selectors: - matchArgs: - index: 0 operator: "Prefix" values: - "/bin/sh" - "/bin/bash"
5. AI‑Driven Decision Support for Risk Prioritization
Dovzhik’s Lema AI is built on the premise that AI can transform risk teams from reactive auditors to proactive engineers. The technical challenge is not just collecting data, but correlating it into actionable intelligence.
Step‑by‑Step Guide:
Step 1: Aggregate multiple risk signals.
Pull data from vulnerability scanners, cloud posture tools, and threat intelligence feeds into a centralized data lake. Use `Elasticsearch` to index and query:
curl -X POST "localhost:9200/risks/_search" -H 'Content-Type: application/json' -d'
{
"query": {
"bool": {
"must": [
{ "term": { "vendor": "acme" } },
{ "range": { "cvss_score": { "gte": 7.0 } } }
]
}
}
}'
Step 2: Train a ML model for anomaly detection.
Using `Python` and scikit-learn, build an Isolation Forest model to flag vendors whose risk profile deviates from the norm:
from sklearn.ensemble import IsolationForest model = IsolationForest(contamination=0.05) model.fit(vendor_risk_features) anomalies = model.predict(new_vendor_data)
Step 3: Automate remediation workflows.
Integrate with SOAR platforms (e.g., TheHive, Shuffle) to trigger automated responses—like revoking access tokens or isolating a vendor’s network segment—when risk scores exceed thresholds.
Step 4: Continuously retrain models.
Schedule weekly retraining pipelines using `Apache Airflow` to incorporate the latest threat intelligence and vendor performance data.
- Hardening Windows and Linux Endpoints Against Vendor‑Originated Threats
Vendors often require agent installations or remote access to your endpoints. These become privileged footholds if not properly secured.
Step‑by‑Step Guide:
Step 1: Restrict vendor agent permissions.
On Windows, use `icacls` to lock down the installation directory:
icacls "C:\Program Files\VendorAgent" /inheritance:r /grant "SYSTEM:(OI)(CI)F" /grant "Administrators:(OI)(CI)F" /deny "Users:(OI)(CI)RX"
On Linux, use `setfacl` to limit execution:
setfacl -m u:vendor_user:rx /opt/vendor_agent setfacl -m u:vendor_user: /opt/vendor_agent/config
Step 2: Monitor vendor‑agent network traffic.
Use `tcpdump` on Linux or `netsh` on Windows to capture and analyze outbound connections:
tcpdump -i eth0 -s 0 -w vendor_traffic.pcap host vendor-domain.com
netsh trace start capture=yes tracefile=C:\traces\vendor.etl
Step 3: Enable AppLocker or SELinux.
Create policies that allow only signed vendor binaries to execute. On Windows, use Set-AppLockerPolicy:
Set-AppLockerPolicy -PolicyXml C:\policies\vendor_whitelist.xml
On Linux, enforce SELinux contexts:
semanage fcontext -a -t vendor_exec_t "/opt/vendor_agent(/.)?" restorecon -Rv /opt/vendor_agent
Step 4: Regularly rotate secrets and tokens.
Automate rotation of any API keys or service account passwords used by vendor agents using Hashicorp Vault:
vault secrets enable -path=vendor-kv kv vault kv put vendor-kv/api-key value=$NEW_KEY
7. Building a Continuous Third‑Party Risk Engineering Culture
Technology alone is not enough. The shift from compliance to risk engineering requires new skills, new metrics, and new conversations with the board.
Step‑by‑Step Guide:
Step 1: Redefine success metrics.
Replace “percentage of vendors with completed questionnaires” with “mean time to detect (MTTD) and mean time to respond (MTTR) for vendor‑related incidents.” Track these in a dashboard using `Grafana` and Prometheus.
Step 2: Conduct joint tabletop exercises.
Simulate a vendor breach (e.g., ransomware in their environment) and practice your incident response plan. Use open‑source tools like `Atomic Red Team` to generate realistic TTPs:
Invoke-AtomicTest T1566 -TestNumber 1 Phishing simulation
Step 3: Upskill your team.
Encourage security engineers to obtain certifications in cloud security (e.g., AWS Certified Security – Specialty) and offensive tradecraft. Leverage platforms like `pwn.college` for hands‑on training.
Step 4: Foster transparency with vendors.
Share your risk engineering framework and require vendors to do the same. Use standardized formats like `OSCAL` to exchange control implementations and continuous monitoring data.
What Undercode Say:
- Key Takeaway 1: Third‑party risk is not a one‑time assessment; it is a continuous, data‑driven engineering discipline that demands real‑time visibility and automated response.
- Key Takeaway 2: AI is not a magic wand—it is a force multiplier that helps risk teams cut through noise, prioritize critical vulnerabilities, and focus on what truly matters: preventing breaches, not just passing audits.
Analysis:
Eddie Dovzhik’s background in Israel’s elite Unit 8200—an offensive cyber intelligence unit—shapes his pragmatic, threat‑informed approach to defense. He understands that attackers think in terms of opportunities, not compliance gaps. By repositioning TPRM as “Risk Engineering,” he challenges organizations to adopt the same mindset: assume your vendors will be compromised, and engineer your systems to contain and recover from that compromise. The technical controls outlined above—continuous discovery, API hardening, cloud posture validation, and AI‑driven prioritization—are not optional extras; they are the new baseline. The market has responded: Lema AI emerged from stealth with $24M in Series A funding from Team8, F2 Venture Capital, and Salesforce Ventures, signaling that enterprise buyers are ready to retire the checkbox. The real test will be execution—can organizations move beyond pilot programs to embed these practices into every procurement and vendor management lifecycle? The tools and commands are available; the cultural shift is the harder lift.
Prediction:
- +1 The convergence of AI and offensive tradecraft will give rise to a new class of “Risk Engineers” who are as comfortable with Python and eBPF as they are with GRC frameworks, making TPRM a highly sought‑after career path.
- -1 Organizations that delay this transition will experience a significant breach via a fourth‑party or fifth‑party vendor within the next 18 months, as attackers increasingly target the weakest link in the supply chain.
- +1 Regulatory bodies will soon mandate continuous monitoring and real‑time risk scoring for critical infrastructure vendors, accelerating the adoption of platforms like Lema AI and forcing legacy GRC tools into obsolescence.
- -1 The shortage of professionals skilled in both cybersecurity and data science will create a bottleneck, leaving many enterprises with automated tools but no one capable of interpreting their outputs—leading to alert fatigue and missed threats.
- +1 Open‑source initiatives for SBOM validation and policy‑as‑code will mature, enabling even mid‑sized companies to implement risk engineering without vendor lock‑in, democratizing security across the supply chain.
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