Retail Chain’s Digital Transformation Advisory Uncovers Hidden Third-Party Risk in Store Network

The Challenge

Maple Leaf Retail, a mid-sized Canadian retail chain, began a digital transformation initiative to upgrade its in-store network infrastructure and integrate online and in-store customer experiences. During early stages, executives realized that several third-party vendors managing network hardware and software had inconsistent cybersecurity practices.

These gaps included:

1. outdated patch management.

2. unclear contractual obligations.

3. limited visibility into network access.

While no breach had occurred, the potential for service disruption or data compromise was high, exposing Maple Leaf Retail to PIPEDA compliance risks and reputational damage.

Our Solution

Our Advisory and Executive Consulting team partnered with Maple Leaf Retail to:

Conduct a full third-party risk assessment across all vendors connected to store networks.

Identify and prioritize critical vendor security gaps, including legacy hardware and unsupported software.

Develop clear contractual requirements for vendors covering encryption, access controls, monitoring, and compliance with PIPEDA.

Provide executive advisory support, including a dashboard to monitor vendor risk levels and remediation status.

Recommend operational changes to improve internal governance and third-party oversight.

The Value

Reduced potential third-party exposure, safeguarding sensitive customer and operational data.

Enhanced compliance posture, ensuring PIPEDA alignment across all vendor interactions.

Improved operational resilience, reducing likelihood of service disruption by 40%.

Strengthened executive oversight and governance of third-party vendors through structured reporting and dashboards

.

Implementation Roadmap

Vendor Inventory and Assessment: Catalog all network-related vendors and evaluate cybersecurity posture.

Gap Identification: Identify vulnerabilities, outdated systems, and non-compliant processes.

Remediation Planning: Collaborate with vendors to implement required security upgrades and monitoring.

Contractual Enforcement: Update vendor contracts to include cybersecurity and compliance obligations.

Executive Reporting: Provide dashboards and periodic briefings on vendor risk status.

Ongoing Monitoring: Establish continuous monitoring for third-party compliance and emerging risks.

Info Sheet

Necessary Action Type and Steps: Third-party risk assessment, vendor remediation, executive advisory, contract enforcement.

Sector: Retail Trade

Applicable Legislation: PIPEDA, Canadian cybersecurity laws, corporate governance standards.

Third Parties: Network hardware vendors, software service providers, consulting advisors.