Third-Party Risk Assessment - 5.3
Summary
The third-party risk assessment process involves conducting vendor assessments, due diligence, and continuous monitoring through penetration testing, audits, independent assessments, and questionnaires to evaluate and manage third-party security practices and ensure compliance with contractual and security standards.
Notes:
Vendor Assessments
- Penetration Testing: Simulated attacks on a third party's systems to identify potential vulnerabilities.
- Rules of Engagement: Terms and conditions defining how the penetration test will be conducted (e.g., scope, locations, types of attacks, points of contact, and how discovered information will be handled).
- Right-to-Audit Clause: A contract provision that grants the organization the right to audit the third-party provider's security practices and operations as necessary.
- Evidence of Internal Audits: Documentation that verifies the third party regularly conducts internal audits to assess and improve its security posture.
- Independent Assessments: Engaging an external security expert to conduct unbiased assessments of the third party's security measures.
- Supply Chain Analysis: Evaluating all stages of the supply chain to identify potential vulnerabilities, especially in the production and distribution of goods or services.
Vendor Selection
- Due Diligence: A comprehensive assessment performed before entering into a relationship with a third party to evaluate their security policies, practices, and overall risk profile.
- Conflict of Interest: Identifying situations where a third party's relationships or interests may compromise the objectivity or reliability of their services.
Vendor Monitoring
- Ongoing audits and reviews of third parties to ensure they maintain adequate security practices and meet contractual security requirements.
- Questionnaires: A method of gathering information from third parties to monitor their security postures, often used to assess compliance with security standards and agreements.