Terms
- AICPA
- CMMC
- Compliance Risk Management
- Compliance Automation Software
- Cybersecurity
- FedRAMP
- GDPR
- GRC
- HIPAA
- HIPAA Employee Training
- HIPAA Rules
- HIPAA Breach
- ISO 27001
- ISO 27001 Security Standard
- IT Security Policy
- Protected Health Information
- Risk Assessment
- Security Questionnaire
- SOC 1
- SOC 2
- SOC 2 Auditor
- SOC 3
- SOC Reports
- Trust Services Criteria (TSC)
- SSAE 16
- SSAE 18
- Vendor Assessment
- Vendor Management Policy
- Vendor Review
- Vulnerability Management
What is a Vendor Management Policy?
A vendor management policy is an important component of an organization's larger compliance risk management strategy. It is a best practice for any organization that works with sensitive data and customers' personally identifiable information (PII) to develop a policy to review all vendors — each third-party, contractor, or associate with whom an organization does business — and to establish requirements for the level of information security that vendors should maintain. As an organization outsources to a wider ecosystem of vendors and partners, its risk increases.
A vendor management policy, developed and overseen by a cross-company team, will help an organization evaluate its current vendors according to level of risk, and to assess potential new vendors for adherence to appropriate cybersecurity practices. A successful vendor management policy will also establish processes for the continuous monitoring of third-party and fourth-party service providers to ensure their ongoing adherence to an appropriate level of security.
Organizations maintaining a vendor management policy may have a particular interest in working with vendors who meet security requirements such as SOC 2 compliance.
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