Want Your Third Parties To Take Security Seriously?

Outsourcing to third parties has become increasingly prevalent, especially in the gig economy, leading to potential risks for enterprises that often lack a comprehensive list of their third-party providers. Regulatory bodies worldwide are responding with measures like Canada's Critical Cyber Systems Protection Act, the EU's NIS 2 Directive, and the U.S.'s Federal Acquisition Supply Chain Act to address supply chain and cybersecurity risks. Companies must now adapt their processes to ensure third-party providers adhere to strict security, privacy, and risk management standards. This adaptation begins with the request for proposal (RFP) process, where security expectations must be clearly communicated and codified in contracts, including provisions for right-to-audit, breach notifications, and ongoing security meetings. Implementing these measures not only fulfills regulatory requirements but also streamlines the onboarding process for vendors with strong security programs, ultimately benefiting both parties in maintaining secure and resilient operations.