Wie können Sie die Sicherheit von Drittanbietern gewährleisten?

When revising contracts with vendors for security purposes, it is essential to include advisors specializing in cyber defense, law, and insurance. Defense professionals establish security benchmarks, legal consultants convert these standards into enforceable contract terms, and insurance advisors clarify the scope of coverage, to include terms and conditions. This strategy ensures adherence to security standards, liabilities are understood, and the necessary clauses for indemnification are incorporated. Moreover, leaders must verify that vendors are in compliance with existing B2B contracts, regulatory mandates, and insurance requirements. This creates a thorough framework to help manage security risks associated with third-party vendors.

In addition to all the great pointers, I always ask my folks to 'Google' about the vendor. Visit their website, services, grasp more info, before even reading a 'Contract'. Homeworks before assessment always helps in scoping>>risk profiling>>due diligence>>and contractually binding a vendor. Many a times, my folks are more informed than the LoBs. Self-Awareness is the 1st step! Reviews shouldn't be always bookish/bound to a questionnaire/tool,it should evolve above and beyond however shouldn't be redundant. An Assessor needs to be given the freedom to ask questions. No harm if an Assessor wears the shoes of an Auditor and walks an extra mile. Effective Communications and Documentations will be the other impt pointers to be considered

Part of the Organisation's Governance needs to be the Third Party Governance. Understanding the potential risks associated with third-party vendor and it's risk appetite is of utmost importance. Due diligence, by a cross functional team comprising of SMEs, Operations expert, HR and Legal, of the third-party vendor's Security policies, procedures, baselines, compliance to different regulatory guidelines, directives, regulations, Standards and Certifications with special thrust on how the third-party vendor approached any previous incident, how the mitigation was carried out and whether countermeasures were implemented. Another aspect is if the vendor is following security by design philosophy to reduce risk of SCM and has mechanism of SBOM.

In addition to verifying their complaince with legal and regulatoey requirements, it is also important to see if they are certified on globally leading cetifications like ISO 27001. Many times organisations do this once while on-boarding the third party service provider. But they fail to do it ona regular basis as part of the annual assessment of the vendors. Such checks should be made mandatory as part of renewal of contracts.

Centralizing the vendor assessments under professional risk management ensures a data-driven evaluation of potential third-party capabilities. Implementing a common evaluation of the security due diligence and audits allows the adjustment of contractual terms, insurance policies, control attestations, and penalty clauses. Responses may trigger the disqualification of unsecured vendor or the activation of exit plans for replacement.

Senior Management need to be aware and understand the high risk of cybersecurity attacks and data breaches within their organizations and external service providers. 3rd Party Risk Management program include but not limited to: 1.Performing due diligence of security risk assessment on third party to ensure compliance to the organization, regulatory or industry standards. 2.Performing annual due diligence review and assessment on 3rd party security. 3.Implement 3rd party risk management tools such as BlackKite , Security Scorecard etc to continuously monitor the cyber health and security posture of the parties. 4.Established an effective offboarding process and procedure by integrating third party / outsourcing clause into contracts.

In my experience, a systematic approach should be followed to mitigate such risks. A vendor selection criteria embedding a comprehensive risk assessment should drive the decision. It should be complemented by controls such as legal clauses securing contractual agreements, along with ongoing monitoring and regular review. One of the key aspects to consider to manage this type of risk is about educating the employees about risks and controls associated with third parties, in addition to contingency planning.

Due Diligence: Perform background checks on vendors to verify their reputation, financial stability, and security track record. It is imperative to research the vendor's reputation in the industry by reviewing customer testimonials, online reviews, and references from other clients. In addition, seek feedback from industry forums or communities to gauge the vendor's standing.

Diving deep into the intricacies of securing third-party vendors in the ever-evolving realm of cybersecurity. In an era where collaborative partnerships and outsourcing are integral to business success, safeguarding sensitive data becomes a non-negotiable priority. Join me on a journey to explore robust strategies and best practices for ensuring the security of third-party vendors. From thorough risk assessments to establishing stringent contractual agreements, discover how to fortify your organization against potential vulnerabilities. Let's navigate the complex landscape of vendor security together and elevate our cybersecurity resilience. Ready to embrace the challenge? #VendorSecurity #Cybersecurity #RiskMitigation #BusinessResilience"

Capacity verification is integral for good contractual performance. The third party firm should be financially and technically sound with enough credentials so that the vendor does not stop the work midway. Stringent CV parameters should be set based on the type of work, service to be executed by the organization which is looking for potential third party firms.

Through the escalation of unmet service Key Performance Indicators, commercial disputes, and vulnerabilities discovered in continuous audits and certifications, risk managers identify patterns, proactively addressing potential security issues. This approach guarantees the robustness of the supply chain, fortifying the organization against unforeseen challenges. Vendors should also be required to notify about potential risks and incidents during their contract performance, including for subcontractors.

Using a public data research tool that automatically monitors the vendor for changes is one way to constantly monitor without requiring the vendor’s time. Make sure contracts have auditing rights and follow through with those audits of the vendor every 6 months.

Training and Awareness: Educate your employees on vendor risk management. Ensure they understand the potential risks and their roles in mitigating them. Stay Informed and Updated: Keep track of industry trends, new security threats, and regulatory changes. Regularly reassess your risk management strategies to adapt to evolving challenges. Managing vendor risks is an ongoing process. Regular reviews, updates, and proactive measures are essential to effectively mitigate potential threats.

Some KPIs help assess supplier performance in areas such as delivery, quality, customer satisfaction, cost, responsiveness, compliance, and relationship management. This monitoring of performance KPIs is important, as is the formal signing of clear SLAs specifying the reciprocal obligations of the parties. But beyond this formal compliance, it is important that companies carry out checks to ensure that the obligations entered into by suppliers or subcontractors are actually respected.

Periodic reviews and real time assessment of vendor’s are ways to constantly modify and improve the vendor’s performance against targeted output milestone but with clear service level agreements that will set the tone and boundaries of operation when executing the security systems

SLA’s and KPI’s tend to focus on the functional aspects of the service provision, but one should also keep the non-functional requirements in mind (info sec, data protection, compliance). Nowadays a lot of vendors also provide third party assurance reports (SOC 1 or SOC 2, ISAE 3402 or ISAE 3000). Vendors can also have ISO certifications (eg ISO 27001), but those don’t nearly go as far as a TPA reports, in particular as the certification is one of the management system (not the controls themselves), although if an ISO certification is maintained for several years, a certain level of maturity should have been attained (as the purpose of the plan-do-check-act cycle embedded in the mgt systems is to reach a stage of continuous improvement)

While creating annual audit plan one should also consider review of key outsourcing partners. Either via in-house audit/risk team or third party consultants

Ensuring effective vendor management entails creating explicit SLAs and KPIs, employing monitoring tools, and promoting transparent communication. This not only tackles immediate issues but also enhances the overall resilience and enduring success of your business network.

As per my experience, apart from SLA and KPIs one more important factor is to monitor the supplier’s compliance and perfect periodic supplier’s assessment. Further, we must validate the inherent risk on an annual bases to make sure the risk tiering is still valid/accurate and if there are any exceptions or risk acceptance then we must review them to validate their requirement and applicability.

A etapa de monitoramento do desempenho do fornecedor é uma etapa fundamental para acompanhar os compromissos, qualidade e riscos que foram identificamos no processo de aceitação e contratação dos terceiros. Uma forma de antecipar possíveis problemas para a cadeia de valor como um todo.

Remember that even though it's a third-party, once you integrate them into your processes, it becomes your risk. Apart from already mentioned recommendations, make sure to have a good understanding of how a complete compromise of a third-party will affect your infrastructure and business processes and be prepared to quickly contain and respond to such an event and resume the affected process through alternative means.

Contingency plan is very crucial if a company has to acquire services from a third party vendor. If contingency solution can be acquired internally that will be an ideal solution but not always possible. Therefore, a cost effective alternate solution should be kept ready.

Understanding the business use case for a vendor can greatly help to identify additional risks that may not be apparent in reviewing vendor security documentation alone. What is the nature of the data you will be sharing with the vendor, and how sensitive is it? Will vendor software be integrating directly with your critical systems? Gathering these details as part of the vendor security review process will allow you to create more effective and bespoke controls that mitigate the risks associated with how your company uses the vendor's services.

To manage vendor risks effectively, establish a robust vendor risk management (VRM) program. Begin by identifying critical vendors and assessing their potential impact on your business. Conduct due diligence on vendors, evaluating their financial stability, security measures, and compliance with relevant regulations. Clearly define contractual expectations and include risk mitigation clauses. Regularly monitor vendor performance and compliance, and establish contingency plans for potential disruptions. Stay informed about industry best practices and regulatory changes to adapt your VRM strategy accordingly. Regularly review and update your vendor risk management processes to address evolving threats and challenges.

Purely from a BCP standpoint, there should at least be a couple of vendors working on a project, especially if it is a critical, ongoing one. While the Lion's share might be allocated to the preferred vendor, the integration with the second vendor takes care of unforseen events and keeps the vendor's pricing power in check by limiting the dependency.

When terminating the relationship with a vendor, It is important to have a clear offboarding process in place to securely remove their access to your systems and data. This includes revoking access privileges, deleting data, and conducting a final security audit. It is equally important to put in place clear procedures for vendors to report security incidents on time. They could be required to provide detailed information about the incident, including its cause, impact, and recommendation for resolution.

Managing vendor risks should not be handled only by one function or role within the organization. All stakeholders relevant in the contracting process are also responsible to manage the risk of that vendor throughout the contract period.

Assess the potential risks associated with your vendors. How are your data protected? How is your vendor connected with your company? Regularly monitor the vendor's performance and security practices. This could include KPIs and regular performance reviews. Ensure that your contracts with vendors include clauses requiring them to maintain specific security standards and to notify you of any security incidents. Finally, have an Incident Response Plan to react to security incidents involving your vendors.

Bei der Lieferantenrisikoanalyse ist inbesondere die Wahrscheinlichkeit eines Aufalls wichtiger Lieferanten und dessen Auswirkung zu quantifizieren. Die Ausfallwahrscheinlichkeit ergibt sich aus einem Rating, das auch mögliche Stressszenarien (z.B. Konjunkureinbruch) berücksichtigen soll (Ratingprognose). Für die unsicheren finanziellen Risiken sollte man Bandbreiten angeben (z.B. Dreiecksverteilung). Die Lieferantenrisiken sind schließlich bei der Risikoaggregation (Monte Carlo Simulation) zur Bestimmung des Eigenkapitalbedarfs zu berücksichtigen.

Ein hervorragender Abschnitt! Ein effektives Risikomanagement-Framework ist entscheidend für den Umgang mit Lieferantenrisiken. Die Dokumentation von Risikobereitschaft und -toleranz sowie die Zuweisung klarer Rollen sind Schlüsselaspekte, die eine proaktive Haltung fördern. Besonders wichtig sind Notfallpläne und Backup-Lösungen. Diese können in der heutigen dynamischen Geschäftswelt den Unterschied zwischen einem kleinen Rückschlag und einer größeren Krise bedeuten. Tolle Einsichten und praxisnahe Empfehlungen!

Many times organisations fail to put auditability clauses while entering into contracts with third party service providers. This is very important to ensure the security of such service providers. If the service providers have policies restricting periodic audits by their clients, then a process must be established to get independent third party audit certificates to be obtained as part of annual renewal of contracts.

While updating contracts is good advice, in practice most companies do not want to spend more legal time on re-review. Use the annual renewal as a means of determining if there has been any services creep and look at the vendors online terms to determine if they have changed. Often, you may find you are subject to new terms without your knowledge. Finally, check to make sure the vendor’s services are still being used and any employees who left are no longer authorized to use that vendor.

Always add security clauses and Audit requirements in the contracts to ensure that you have signed up for a secure third party engagement and and security is an important component of that service delivery

Make sure you can have relevant audit authorities and /or ability to require relevant external assessments and certifications (such as SOC reports or ISO certifications)

As the needs of the business changes and evolves, so should the vendor contracts and SLAs. The services provided may no longer be in alignment with where the company is going and future goals. For industries that are very fast paced it is recommended that contracts be assessed semiannually and renewed if necessary. Also, as the vendor updates their software and systems, contracts should be renewed to ensure that your company is getting the best version to date which will provide greater efficiency.

To ensure the security of third-party vendors, employ robust contractual agreements with stringent confidentiality clauses, outlining specific security protocols, compliance standards (such as GDPR, HIPAA), and indemnification terms in case of breaches, alongside regular audits and assessments to enforce adherence to these terms.

Join with hip with your souring team and support them to do the right thing...no they can not always operate independently, but awareness is first step with real action

In my experience, regularly reviewing and updating vendor contracts to include stringent security clauses is crucial. Clearly outline cybersecurity expectations, data protection measures, and compliance standards within the contractual framework. Establish protocols for reporting security incidents and ensure vendors adhere to industry best practices. Regular audits and assessments, as outlined in updated contracts, further validate a vendor's commitment to security. Continuous communication and collaboration between your organization and third-party vendors create a dynamic framework for adapting to evolving security threats.

Uma etapa muito relevante, em muitos casos negligenciado, pois todos os esforços estão concentrados no momento inicial da relação com o terceiro, que naturalmente tem um esforço especial para atendimento de todas as requisições do contratante. Calibrar a relação com o terceiro, entendendo o momento de mercado e riscos envolvidos, me soa como razoável para alinhamento das expectativas e apetite de risco das companhias.

Covid was a great example of uncertainty. Contracts should be mutually flexible to enable work during uncertainties. The potential uncertainties and action plans should be talked though by the TPV and Client to navigate smoothly.

In this case, training is constant and not annual. Consider regular emails or other internal means of communication for sharing good tips about vendor monitoring.

In my experience, we must train to business owners/ managers regarding the outsourcing risk and impacts to gain their commitment and support for effective TPRM program.

Training and Development is like two sided coin. One side is all about the training requirement, content, Methods and the trainer. The other side of the coin is about the evaluation and effectiveness. Many Trainers assume the content has reached the trainees but surprises furnish when the situation arises. Certificates does not define the trainees Knowledge. The focus is to put in effectiveness by Scenario Based Situations(SBT), Role Plays,Written Test, On ground stimulations, Observer Feedbacks, Casual connects and Coffee chats.

A fundamental part of good behavior in the relationship with suppliers is the training and dissemination of good corporate practices that a company can have in this area. As they say, let's start well at home first and then towards our third parties. That there are clear policies and procedures for this type of relationship and that these, in turn, are known by the entire company.

No vendor should be granted direct access to our systems, especially when handling sensitive data. It is imperative to hire subject experts, and equally crucial is the ongoing education of our staff. This continuous learning process ensures that our team remains well-informed about the latest updates and trends in vendor management, fostering a culture of heightened awareness and vigilance against potential risks.

In my experience, training staff on secure interactions with third-party vendors is crucial for organizational security. Educate them about the risks and benefits of vendor relationships, emphasizing best practices and internal policies for vendor management. Teach them how to protect sensitive data and systems from unauthorized access by vendors and encourage reporting any suspicious vendor activities. Regular training and updates on emerging threats are essential to maintain a vigilant and informed team, capable of contributing effectively to the organization's vendor risk management strategy.

Within the risk assessment exercise, most exposed persons -to the risk of dealing with a vendor and not being able to identify security breaches- should be known and obliged to get specific training on how to handle sensitive date and authorizations internally and with vendor to secure the firm from internal and external risk of breach of compliance and get fines that might shake down the whole firm

Not only about the risks, look also how to train the Positive "Solutions"... this type of vendors we have a solution A and for this type we have "Solution B". This logically assumes that you have really good co-ops with the relevant IT-teams... i.e. be solution oriented not to create frustrations and anxiety. They will push your customers away from you, where as Solution approach will make them "your "Ambassadors"

On top of generic staff training on vendor and risk management subjects, it's also important to have specific or dedicated training, guidelines, or manuals related to each vendor relationships. Each vendor relationship is unique and needs to be treated accordingly.

The right and important setup of vendor management tool is to ensure it's integrated seamlessly with others like procurement workflow, service management (or at least Helpdesk ticketing), privacy management, and enterprise risk management tools. Siloed data sources and processes will undermine the effectiveness of the overall vendor management program.

If in the auditablity clause should specify the particular function or process which has direct and long term impact on business and also if it is measurable. The audit should also be able to measure the capacity of the vendor to close the CAPA on a standard time. May be the number of breach positive, number of breach attempt and simulated breach attempt can be used to grade the vendors. One should understand risk is part of the business. The quantity lies in how wast and efficiently one can close an issue so the impact is minimal. Thus need to focus on process management of vendor

The most important part of your managing tool is to be sure not to have any hole in your net. You have to prove to yourself and your organisation that any vendor situation will be reviewed in a maximum time length. The most difficult part of this is to make sure you control the low-noise vendors. Indeed, the vendors making the most visible problems will always be taken care of. But the most dangerous situation is the failure of those that you trust the most. You have to force your organisation to check on them with regularity. So, you have to get your algorithm go through your vendor list and have a date of compulsory check on each of them with the minimum list of controls.

O uso de tecnologia sempre se faz necessário em um ambiente de conexões diversas e a necessidade constante de manter ou conquistar a escala dos negócios. Realizar toda a gestão de fornecedores, que considere seu processo de aceitação, contratos, riscos, monitoramento e governança, sem o uso de tecnologia, me parece contraditório e uma aposta para aumento do custo de observância, custos redundantes e aumento das vulnerabilidades.

Using supplier management tools is essential to ensure safety and efficiency in dealings with external suppliers. To enhance this practice, it is recommended to fully integrate them with internal systems, automate evaluation processes, generate personalized reports, incorporate predictive analysis, facilitate real-time collaboration, integrate threat intelligence, provide educational resources, and establish mechanisms for continuous evaluation.

Well, with respect to all the valuable comments added here, I would like to mention that, we are slowly moving to a point, where we require a CTPRO (Chief Third-Party Risk Officer) with a veto-power in an organization. A position which is equally responsible, accountable and respectable at the same-time, in an organization. The tone-at-the-top should drive the risk culture within the organization. Today, everyone just wants to onboard a third-party, and want to transfer the risk if something goes wrong (God-forbidden).

Organizations have to collaborate with multiple third parties as part of the business eco-systems. Third parties and ecosystems due to the complex inter-connectedness may potentially have systemic risk. It becomes imperative for organizations to develop a dynamic third party risk management framework to scan, identify and mitigate risk in the ecosystem. Key aspects enable security of third party and ecosystems are: 1. Who is on the bus : Evaluate prior to on-boarding to ensure risk are adequately identified and mitigated 2. Bound by contracts : Make third parties responsible for risk management with in the ecosystem 3. Shared accountability: Ecosystem's risk management to be shared among parties involved

Cyber Security Insurance Companies might want to include in the prequalification of vendor requirements, a cyber security insurance certificate. It offers a third party comfort and security, on the assumption that insurance companies would have done their due diligence before issuing the certificate. And in the event the risk insured crystallises, insurance company will indemnify. Of course, this is in addition to what have been said, companies are still responsible for ensuring adequate security for their digital assets.

On top of what has already been mentioned, it is very important to do continuous quality check at random intervals on the services/outputs delivered by a third party vendor. If the situation warrants, then such quality checks should be done in an anonymous manner to rule out the possibility of a biased outcome. A threshold may be defined for an acceptable level of quality in the service/output delivered by the vendor and upon breach of such threshold, the vendor's contract/agreement may be put through a review. It is also advisable to keep an eye on the competitive landscape of the vendor to see if there are better alternatives than the one currently being used and to see if another vendor has a significantly superior solution.

Every vendor is not equally critical. Based on certain parameters like how data is accessed, where it is store ,inherent risk could be measured to determine applicability of controls & frequency of review.

3rd party vendor Status can be assessed if his work or tasks are done on time or before time in good order to satisfaction of all. Tell tale factor to go by..

Organizations should establish their independent procurement unit/department. That should be always managed by procurement committee. DOA should be flexible and clear along with proper P&P and segregation of duties. Third parties are the always the main players and therefore, selection criteria should be reflecting the industry nature and the organization specific requirements. As we know while selecting making sure that proper contracts, SLAs and KPIs are in place in advance to avoid delays and mismanagement. Rewarding and penalties scheme should be part of the procedures which will always give the organization the opportunity to increase their performance while reducing risks and ensure vendors collaboration.

In my view, Third party security assessments must be considered as a vital factor during the onboarding process of the vendor as well as during the renewal process of the service agreements. During evaluation phase reports like ISO27001, NESA and VAPT should be factored as key indicators of the security levels

Risk detection and Vendor Isolation plan: In my experience, achieving full control over third-party operations remains a challenge, despite rigorous vendor assessments and control measures. The inevitability of risks underscores the importance of having a robust Vendor Risk Detection and Isolation plan in place. It's crucial to swiftly isolate a vendor if necessary, followed by a thorough analysis of the situation. This approach allows for a prompt response to mitigate potential damage and facilitates the restoration of critical functions.

Incentivize performance. When good performance as per contractual timelines are done, the vendors should be incentivized a percentage of the total value of contract and that should be part of special conditions of contract. This would help in retaining good vendors in the firms list of vendors.