How do you assess privacy and security risks when using third-party providers?

1 Identify your data and assets

The first step to assess privacy and security risks is to identify what data and assets you are sharing or entrusting with third-party providers. This includes personal, financial, operational, and intellectual property data, as well as hardware, software, and network resources. You need to classify your data and assets according to their sensitivity, value, and regulatory requirements, and determine who owns, accesses, and controls them. This will help you to prioritize your risk assessment and protection efforts.

2 Assess the provider's capabilities and policies

The next step is to assess the provider's capabilities and policies regarding privacy and security. You need to verify that the provider has the necessary certifications, accreditations, and standards to handle your data and assets securely and compliantly. You also need to review the provider's policies and procedures for data protection, encryption, backup, recovery, incident response, and audit. You should ask for evidence of the provider's past performance, reputation, and references, and check for any history of breaches, violations, or lawsuits.

3 Negotiate the contract and SLA

The third step is to negotiate the contract and service level agreement (SLA) with the provider. You need to ensure that the contract and SLA clearly define the roles, responsibilities, and expectations of both parties regarding privacy and security. You should also include clauses that specify the provider's obligations for data ownership, retention, deletion, transfer, and disclosure, as well as the penalties for non-compliance or breach. You should also establish the communication channels, escalation procedures, and dispute resolution mechanisms for any issues or concerns.

4 Monitor and audit the provider's performance

The fourth step is to monitor and audit the provider's performance regularly and consistently. You need to measure and evaluate the provider's compliance with the contract and SLA, as well as the quality and security of their service delivery. You should also verify that the provider is following the agreed-upon policies and procedures for data protection, encryption, backup, recovery, incident response, and audit. You should also report and address any deviations, errors, or incidents promptly and effectively.

5 Train and educate your staff

The fifth step is to train and educate your staff on how to use and interact with third-party providers safely and responsibly. You need to inform your staff about the privacy and security risks and implications of using third-party providers, and the policies and procedures they need to follow. You should also provide your staff with the necessary tools and guidance to protect their credentials, devices, and data when accessing or sharing them with third-party providers. You should also encourage your staff to report any suspicious or unauthorized activities or requests.