Vendor Management: How to Start and Why?

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Magda On Cyber

6 min readApr 14, 2022

It’s critical to have someone or a process responsible for ensuring that all your vendors are properly vetted and monitored, particularly when it comes to cybersecurity. With so many data breaches happening these days, it’s more important than ever to have a clear visibility on supply chain risk.

Vendor Management can also help you save money by negotiating better rates with vendors and getting the best deals possible. And finally, Vendor Management can also help you ensure that all your vendors are meeting your standards and requirements, which can be especially important when it comes to critical areas like cybersecurity.

Vendors may have access to your company’s confidential data, and if they are compromised, your data is at risk. You need a system in place to vet and monitor your vendors, so that you can be sure that they are taking the necessary precautions to protect your data.

Photo by Lilibeth Bustos Linares on Unsplash

But, I trust my Vendors?

No brand is 100% secure, but bigger brands tend to have better cybersecurity protocols and defenses in place SOMETIMES. ONLY SOMETIMES …

Trust, but Verify

Cybersecurity is a constantly evolving field, and even the most well-protected brands can fall victim to sophisticated attacks. However, by investing in deterring potential threats and increasing their cyber resilience, brands can stay one step ahead of the criminals.

Bad actors will always be looking for new ways to exploit vulnerabilities, so it’s important for companies to stay up-to-date on the latest cybersecurity trends. Bigger brands have the resources to invest in cutting-edge security technologies and hire teams of dedicated professionals to monitor their systems. This gives them a big advantage when it comes to protecting their data and preventing a successful cyber attack.

The first step in starting a vendor management process is to understand what cybersecurity risks your organization faces and what your obligations are in managing those risks. Once you have a clear understanding of the landscape, you can begin to develop a plan for managing vendors and their access to your systems and data. Developing policies and procedures around these considerations will help you manage vendors in a way that minimizes risk to your organization.

Then you start identifying which vendors pose a cybersecurity risk. This can be done by assessing the organization’s vulnerability to attack, the criticality of the data and systems that could be compromised, and the level of protection currently in place. There are a few key considerations in vendor management from a cybersecurity standpoint:
- Access control: who has access to what?
- Security audits: how often are third-party security audits conducted?
- Incident response: how will you handle it if a vendor’s system is breached?

Once high-risk vendors have been identified, a formal assessment should be conducted to evaluate their security posture. The assessment should include a review of the vendor’s policies and procedures, as well as an evaluation of their technical security controls. Based on the findings of the assessment, corrective actions should be identified and implemented.

It’s important to remember that cybersecurity is not a static process. Vendors must be continuously evaluated and assessed to ensure that they remain in a position to comply with the requirements.

How do I start?

When it comes to vendor management, cybersecurity should be at the forefront of your mind. First and foremost, you’ll need to have a clear understanding of what your organization’s specific needs are. Once you have a good handle on that, you can start evaluating potential vendors and defining the parameters of your relationship with them. By ensuring that your vendors have strong security controls in place, you can help protect your organization from potential cyber threats.

At the end of the day, starting your vendor management process is all about being prepared.

Here are four ways to get started:

1. Evaluate which vendors have access to your sensitive data. This includes cloud service providers, payment processors, and any other outside party that handles your Personally Identifiable Information (PII). Each organization will have different requirements for what qualifies as sensitive data, but this is a good place to start.

2. Conduct due diligence on new and existing vendors. Make sure you understand their security practices, and whether or not they have undergone a third-party security assessment. It’s also important to query them about their incident response plan.

3. Of course, much of this process will revolve around contract management. You’ll need to be very clear about what each party’s responsibilities are and what kind of compensation they can expect. This is all vital to ensuring that everyone is happy with the arrangement and that there are no misunderstandings down the road.

When to ask a vendor to conduct a security assessment?

The answer to this question depends on a number of factors, including the vendor’s level of expertise, the sensitivity of the data that will be exchanged, and the overall security posture of your organization. In general, vendors should undergo a security assessment when they are first brought on board and periodically thereafter. That said, as a general rule of thumb, you should ask your vendors to perform a security assessment at least once a year.

Of course, if you suspect that one of your vendors may have been breached, or if you receive reports of suspicious activity from your users, you should ask for an immediate assessment. In these cases, it’s better to be safe than sorry — even if it means disrupting your business operations for a short period of time.

Performing regular security assessments is one of the best ways to reduce your risk of being victimized by a supplier or third-party. If you work with vendors, handling sensitive information pr providing critical services to your organization, it is especially important to ensure that they have robust security measures in place. One way to do this is to require them to undergo a security assessment. A security assessment can help identify vulnerabilities and risks within a vendor’s systems and processes.

If you’re struggling to get a security assessment from your vendor, don’t give up. There are several things you can do to increase your chances of success. One way is to be prepared with a well-crafted request letter that explains why you need the assessment and what you hope to gain from it. You can also try leveraging your relationship with the vendor or hiring a third party assessor.

If a vendor doesn’t want to provide a security assessment, it’s important to be clear about the risks associated with doing business with that vendor. For example, you could ask the vendor to sign a contract that states they are responsible for any security breaches that may occur as a result of using their software. You could also require the vendor to agree to regular security reviews by a third party.

One way to overcome this obstacle is to have an existing relationship with the vendor. If you are a current customer, they are more likely to be cooperative. In addition, be prepared to offer specific reasons why you need a security assessment and what you hope to gain from it.

Another option is to use a third party assessor. This approach can be more expensive, but it may be more effective in getting the vendor’s attention.

Whichever approach you choose, make sure you are clear about what you want and stay persistent in getting what you need.

Vendor management is a critical aspect of information security, and it’s important to take the necessary steps to secure your ecosystem. A breach or an attack might come from a third party. One way to overcome the obstacle of getting a security assessment from a reluctant vendor is to have an existing relationship with them. In addition, be prepared to offer specific reasons why you need a security assessment and what you hope to gain from it. Another option is to use a third party assessor. But, remember the breach or cyber attack might happen with your vendor .. and lead to your business disruptions…

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