What is a key reason for managing third-party risks?

Managing third-party risks is crucial primarily because it allows organizations to mitigate vulnerabilities that arise from external access. When companies engage third-party vendors, these partners often have access to sensitive data and systems. If not properly managed, this access can lead to security breaches, data leaks, and other risks that may compromise the organization’s security posture.

By effectively managing these risks, organizations can implement controls, monitoring, and governance frameworks that safeguard their assets against potential threats introduced by third-party interactions. This proactive approach ensures that both the organization's data integrity and operational continuity are maintained, as it prepares for and addresses any potential vulnerabilities that could emerge from external connections.

Options that suggest limiting the number of vendors, enhancing external partnerships, or facilitating faster project completion address aspects of vendor management but do not capture the critical need for risk mitigation associated with third-party access to sensitive information. The focus on security and vulnerability management is fundamentally what makes the correct answer significant in the context of cyber risk management.