Third-party risk compliance in the context of cybersecurity refers to the process of assessing and managing the potential cybersecurity risks associated with the use of third-party vendors, suppliers, partners, or service providers. Organizations often rely on various cybersecurity frameworks and standards to guide their third-party risk management efforts. These frameworks provide a structured approach to identifying, evaluating, and mitigating cybersecurity risks posed by third parties.
Here are some commonly used cybersecurity frameworks that can help organizations address thirdparty risk compliance:
NIST Cybersecurity Framework: Developed by the National Institute of Standards and Technology (NIST), this framework provides guidelines for improving cybersecurity risk management across critical infrastructure. It includes a set of guidelines and best practices that can be applied to assess and manage third-party risks.
ISO 27001: This international standard outlines requirements for establishing, implementing, maintaining, and continually improving an information security management system (ISMS) within the context of the organization’s overall business risks. It includes guidance on third-party risk assessment and management.
CSA (Cloud Security Alliance) Cloud Controls Matrix: Particularly relevant for organizations leveraging cloud services, this framework provides a comprehensive set of security controls and best practices for assessing third-party cloud service providers.
FFIEC Cybersecurity Assessment Tool: Developed for financial institutions, this tool helps assess an organization’s cybersecurity risk profile and provides guidance on evaluating third-party service provider relationships.
PCI DSS (Payment Card Industry Data Security Standard): Relevant for organizations handling payment card data, this standard includes requirements for securing third-party service providers involved in payment card processing.
Shared Assessments Program: This program offers a standardized approach to assessing and managing third-party risk. It includes tools such as the Standard Information Gathering (SIG) questionnaire and the Vendor Risk Management Maturity Model (VRMMM).
HIPAA Security Rule: For organizations handling protected health information, the Health Insurance Portability and Accountability Act (HIPAA) Security Rule includes requirements for safeguarding thirdparty relationships.
GDPR (General Data Protection Regulation): Organizations processing personal data of EU residents need to ensure third-party vendors comply with GDPR requirements for data protection and privacy. When implementing a third-party risk compliance program using these frameworks, organizations typically follow these steps:
Inventory and Categorization: Identify and categorize third-party vendors based on the level of risk they pose to your organization’s cybersecurity.
Assessment: Evaluate the cybersecurity practices and controls of third-party vendors using standardized assessments, questionnaires, and audits.
Risk Analysis: Analyze the potential cybersecurity risks associated with each vendor based on the assessment results and other relevant factors.
Mitigation and Remediation: Implement measures to mitigate identified risks, which may include contractual obligations, security improvements, or ongoing monitoring.
Ongoing Monitoring: Continuously monitor and assess third-party vendors to ensure ongoing compliance with cybersecurity requirements.
Incident Response Planning: Develop plans to address cybersecurity incidents involving third-party vendors, including communication and coordination strategies.
Documentation: Maintain comprehensive documentation of all third-party risk management activities, assessments, and mitigation efforts.
Remember that the choice of framework and approach depends on your organization’s specific industry, regulatory requirements, and risk tolerance. It’s important to tailor your third-party risk compliance efforts accordingly
