Vendor Risk Management: Key Questions to Ask Before Partnering

1. Are They Compliant with Industry Standards Like ISO 27001 or NIST?

Why It Matters:
Compliance with recognized standards like ISO 27001 or the NIST Cybersecurity Framework ensures that vendors:

• Meet baseline security requirements.
• Follow best practices.
• Reduce regulatory risks.

Case Example:
In 2021, a T-Mobile breach exposed sensitive data of 40 million users. Investigations revealed that the vendor’s lax adherence to security standards contributed to the attack. By partnering with vendors who comply with industry standards, businesses can mitigate risks tied to insufficient cybersecurity practices. Explore how DACTA’s Certifications & Awards demonstrate our commitment to recognized security standards.

‍2. Do They Conduct Regular Internal and External Security Assessments?

Why It Matters:
Routine internal and external audits reveal vulnerabilities and demonstrate the vendor’s commitment to maintaining strong security measures over time.

‍Case Example:
In 2020, a solar energy provider breach was linked to outdated security controls in one of its vendors, which hadn’t undergone an external assessment in years. The breach disrupted energy supplies, underscoring the importance of ongoing audits. Vendors who prioritize regular evaluations, like DACTA’s Cloud Security Assessment, can help prevent such scenarios.

‍3. How Do They Assess the Security of Their Own Vendors and Partners?

Why It Matters:
Cyber threats cascade through the supply chain. Vendors must ensure their partners maintain similar security standards to prevent these risks.

‍Case Example:
The SolarWinds cyberattack of 2019 highlighted the dangers of supply chain vulnerabilities. Attackers exploited weaknesses in SolarWinds’ third-party providers, gaining access to numerous government and enterprise systems worldwide. Vendors must assess their own suppliers to minimize cascading risks. Learn more about how DACTA helps evaluate supply chain security.

‍4. What Encryption Methods Do They Use for Sensitive Data?

Why It Matters:
Strong encryption protects sensitive data from interception during transmission and storage, reducing the risk of breaches.

Case Example:
The 2019 Capital One breach exposed over 100 million credit applications due to insufficient encryption controls. Partnering with vendors who use encryption standards like AES-256 can significantly reduce this risk. DACTA ensures encryption practices meet the highest standards, safeguarding your sensitive data.

5. Can They Demonstrate a Clear and Tested Incident Response Plan?

Why It Matters:
Strong encryption protects sensitive data from interception during transmission and storage, reducing the risk of breaches.

Case Example:
The 2017 Equifax breach escalated because of a poorly executed incident response plan, leading to the exposure of 147 million records. Ensuring vendors have tested plans in place can prevent such catastrophic consequences. Learn about DACTA’s Incident Response Solutions to see how we help businesses stay prepared for any security incident.

Taking Action: Implementing Vendor Risk Management

To make informed decisions, businesses need a comprehensive vendor risk management framework. This framework should address:

• Vendor compliance with recognized standards.
• Regular and thorough security assessments.
• Encryption protocols for data protection.
• Incident response readiness.

Contact DACTA to learn how our tailored risk management solutions can protect your business by evaluating vendors effectively and ensuring their security aligns with your organizational needs.