Vendor Risk Management: How to Best Demonstrate Your Security Posture

A well-crafted vendor risk management strategy not only keeps your organization’s data secure, it also strengthens business relationships and fosters a culture of security and trust. In an era where data breaches are commonplace, demonstrating your security posture through redundant security questionnaires simply isn’t enough.  We’re here to share our recommendations and help you decide which path is right for you. Let’s get started.

Leverage Existing Documentation

First, we encourage companies to leverage all existing, normalized documentation as the foundation for vendor assessments. This includes documents like SOC 2 reports, ISO 27001 certifications, penetration testing summaries, and other security artifacts that can provide a baseline understanding of a vendor’s security practices. A well-designed VRM program emphasizes the strategic use of these documents to minimize redundancies and streamline the evaluation process.

We also are strong advocates for the use of “trust centers,” which are centralized repositories where vendors can store and share their security documentation. This enables potential clients to easily access relevant information, reducing the need for those repetitive security questionnaires. When additional information is necessary, focused follow-up conversations can provide the required context and detail. 

Utilize Proven Standard Resources

If you don’t have existing documentation to share, not to worry. We recommend utilizing standardized resources such as the Consensus Assessments Initiative Questionnaire (CAIQ) provided by the Cloud Security Alliance, or industry-specific resources like the SIG from Shared Assessments. These resources can ensure a thorough and consistent approach to demonstrating your security posture.

The CAIQ plays a pivotal role in simplifying vendor assessments, especially if your company doesn’t have a trust center. This free standardized questionnaire reduces complexity and time spent on creating and answering standard security questionnaires. The CAIQ’s comprehensive nature ensures critical security aspects are covered, enabling a thorough evaluation of potential vendors. 

Moreover, the CAIQ’s widespread recognition and acceptance mean vendors can often provide a pre-filled questionnaire, demonstrating their security measures proactively. This approach not only streamlines the assessment process but also fosters transparency and trust between parties. By adopting the CAIQ, organizations can focus on the tasks they do best, maximizing overall efficiency.

Create Custom Addendums and Questionnaires

Integrating custom security addendums into vendor contracts is a strategic move to ensure security expectations are explicitly outlined and legally binding. Addendums serve as an accountability mechanism, detailing specific security requirements and compliance standards that the vendor must adhere to throughout the duration of their engagement.

The presence of security addendums not only reinforces the importance of security within the contractual relationship but also provides a clear legal framework for recourse should a vendor fail to meet the agreed-upon standards. They are an essential tool for protecting an organization’s data and can be more valuable than a standalone security questionnaire for mitigating risk. 

Custom questionnaires are typically used in situations where specific security requirements are not addressed by standardized forms. They are also used when dealing with notable high-risk vendors where a deeper dive into their security practices is warranted. 

Don’t overlook the importance of vendor risk management in today’s digital landscape. BARR Advisory’s cybersecurity consulting services can help your organization choose which path is best for your company. Contact us today to get started.