How can you assess cybersecurity risks when working with vendors?

1 Define your risk appetite

Before you engage with any vendor, you need to define your risk appetite, or the level of risk you are willing to accept in exchange for the value of the service or product. This will help you set clear expectations and criteria for your vendor selection and evaluation process. Your risk appetite should align with your business objectives, compliance requirements, and industry standards. You can use frameworks such as NIST or ISO to guide you in defining your risk appetite and establishing your risk tolerance thresholds.

3 Negotiate contracts and SLAs

After you have conducted due diligence and selected your vendor, you need to negotiate contracts and service level agreements (SLAs) that reflect your risk appetite and expectations. You should include clauses and terms that specify your security requirements, such as data protection, confidentiality, availability, and liability. You should also define your performance indicators, monitoring methods, reporting frequency, and escalation procedures. You should review and update your contracts and SLAs regularly to ensure they are relevant and enforceable.

4 Monitor and audit

Once you have signed the contracts and SLAs, you need to monitor and audit your vendor's performance and compliance with your security standards. You should use a combination of automated and manual tools and techniques to track and measure your vendor's security metrics, such as vulnerability scans, penetration tests, audits, reports, and feedback. You should also communicate with your vendor regularly to address any issues, gaps, or changes that may arise. You should document and report any incidents or breaches that may affect your security or operations.

5 Train and educate

Finally, you need to train and educate your staff and stakeholders on how to work with vendors securely and effectively. You should provide them with the necessary knowledge, skills, and tools to identify and mitigate cybersecurity risks when interacting with vendors. You should also create a culture of awareness and accountability that encourages them to report any suspicious or malicious activities or behaviors. You should also educate your vendors on your security expectations and best practices and ensure they comply with them.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?