Collaboration with external vendors (e.g., IT companies, cloud operators, or subcontractors) is an integral part of modern business.
However, every external partner that processes your organisation’s data introduces new risks to information security.
Managing this risk is now a necessity – both from a compliance perspective (ISO 27001, NIS2) and for protecting the company’s reputation.
Why Managing Vendor Risk Matters
Lack of control over security on the vendor’s side can lead to:
- loss of confidential data,
- service disruptions (outages, sabotage),
- regulatory fines (e.g., GDPR, NIS2),
- loss of trust from customers and partners.
That’s why effective Third-Party Risk Management (TPRM) has become a pillar of every organisation’s cybersecurity strategy.
How to Identify Vendor-Related Risks
- Vendor Assessment – evaluate security levels before signing a contract (e.g., security questionnaires, risk scoring).
- Security Audits – conduct on-site or remote audits to verify compliance with standards.
- Risk Categorisation – classify vendors based on data access (high-risk for those handling sensitive information).
How to Assess Vendor Risks
Use a structured approach:
- Questionnaires & Self-Assessments – require vendors to provide details on their security practices.
- Third-Party Reports – leverage SOC2, ISO 27001 certifications, or independent audits.
- Risk Scoring – assign scores based on factors like financial stability, cybersecurity maturity, and geopolitical risks.
How to Mitigate Vendor Risks
- Contractual Safeguards – include security clauses in agreements (e.g., data protection, incident reporting, audit rights).
- Ongoing Monitoring – use tools for continuous vendor risk tracking (e.g., SecurityScorecard, Bitsight).
- Incident Response Integration – ensure vendors notify you of breaches within defined timelines (e.g., 72 hours per GDPR).
Key Contractual Provisions for Vendor Security
- Data Protection & Incidents – obligations for data encryption, incident response, audits, and confidentiality.
- Audit Commitments – ensure your right to inspect and audit the vendor by your organisation or a third party.
- Incident Response – define how and within what timeframe the vendor must report a security incident.
- Subcontractors – require the vendor to control their partners (supply chain).
Continuous Vendor Monitoring and Assessment
Vendor risk management is an ongoing process.
To make it effective, implement:
- Periodic Reviews – monitor collaboration and assess vendor security levels at least annually.
- Change Management – respond to changes in the vendor’s financial, organisational, or technical situation.
- TPRM Tools – use systems that automate assessment and reporting (e.g., OneTrust, SecurityScorecard, UpGuard).
Manage Vendor Risks Today
Develop and implement an effective TPRM process:
- Create a vendor registry with risk classification,
- Prepare security questionnaires and contract templates,
- Establish audit and reporting procedures,
- Conduct cyclical reviews and scoring.
Remember: your vendors’ security is your company’s security.
Get in Touch
I help companies implement Third-Party Risk Management processes compliant with ISO 27001, NIS2, and industry best practices.
I offer vendor audits, development of questionnaires, risk scoring, and training for procurement teams.
Email: biuro@wichran.pl
Phone: +48 515 601 621
Author: Piotr Wichrań – Court-appointed IT forensic expert, IT/OT cybersecurity specialist, licensed private investigator
@Informatyka.Sledcza