7 Steps To Effective Vendor Risk Management
It is no longer enough for a firms to have their internal systems under control; a responsible firm must also monitor and remediate the threat of breach from third-party vendors. AVORD VRM can automate your third-party vendor management making your process faster, easier, and more transparent.
1. CREATE A PLAN AND ASSIGN A TEAM
• Develop a comprehensive Vendor Risk Management Plan.
• Create a Third-Party Vendor Information Security Policy.
• Identify key stakeholders throughout the organization to manage the process. (This is not just an IT issue anymore!)
2. IDENTIFY ALL YOUR VENDORS
• Expand the definition of vendor:
• Networks, components, or information systems.
• Physical security and support services.
• Create an inventory of your vendor network.
• Determine data access and business criticality.
3. TIER VENDORS BASED ON POTENTIAL THREAT
• Tier 1: Business and Mission Critical.
• Tier 2: Access to Highly Sensitive Business and Critical Systems.
• Tier 3: Moderate Access to Networks and Systems.
• Tier 4: Minimal Access to Critical Systems and Networks.
4. GATHER QUESTIONS FOR EACH VENDOR TIER
• Compile a comprehensive list of questions to ask your Tier 1 vendors.
• Tailor questions for lower tiers based on vendor criticality.
• Take into account the vendor’s role and access to systems. Meet Regulatory and Compliance requirements.
5. REVIEW RESULTS AND COMMUNICATE WITH VENDORS
• Score results to clearly identify areas of high risk.
• Address your biggest threats and problems with Tier 1 vendors first.
• Discuss the results with the vendors and communicate proposed solutions or acceptable measures.
6. ADDRESS ANY IDENTIFIED RISKS IN THE CONTRACT AND TERMS AND CONDITIONS
• Set minimum standards of conduct and security.
• Institute remediation timelines for security risks.
• Ensure accountability for breaches.
• Require employee vetting and data access rights management policy. Include clause to audit vendors
7. MONITOR YOUR VENDORS
• After completing baseline security assessments, the following steps should be part of your plan:
• Annual Reassessment
• Real-time critical updates
• Ad Hoc Vendor Audits (On-site and/or Offsite).