Overview:
The entity assesses and manages risks associated with vendors and business partners.
Action Items:
1) Create a vendor management policy and related procedures and publish to the company intranet for employees to access and review.
2) Create a list of vendors and third parties that do business with the entity or have access to internal systems.
3) Inspect the vendor management policy to determine that policies are in place which address the selection process, due diligence, acceptance, periodic monitoring of compliance, exception handling, and termination of contracts with vendors.
4) Inspect the list of vendors added during the review period for adherence to defined vendor management requirements.
5) Inspect a sample of nondisclosure agreements signed by each in-scope vendor to determine that signed nondisclosure agreements of confidentiality and protection are required before sharing information designated as confidential with third parties.
6) Inspect the most recent vendor audit review performed by the compliance team to determine that the compliance team reviews vendor audit reports on at least an annual basis to ensure that third-party providers are in compliance with the organization’s requirements.
7) Inspect the most recently completed risk assessment to determine that the internal audit team, or equivalent, performs monitoring over third parties with whom confidential information is shared to ensure third parties are complying with Company’s confidentiality commitments.
Related Documents:
1) Vendor management policy
2) Inventory list of vendors
3) Vendor non-disclosure agreements
4) Sample of recent vendor audit reviews
5) Sample of recent vendor risk assessments
Additional Guidance:
The following points of focus highlight important characteristics related to this criterion:
1) Establishes Requirements for Vendor and Business Partner Engagements—The entity establishes specific requirements for a vendor and business partner engagement that includes (1) scope of services and product specifications, (2) roles and responsibilities, (3) compliance requirements, and (4) service levels.
2) Assesses Vendor and Business Partner Risks—The entity assesses, on a periodic basis, the risks that vendors and business partners (and those entities' vendors and business partners) represent to the achievement of the entity's objectives.
3) Assigns Responsibility and Accountability for Managing Vendors and Business Partners—The entity assigns responsibility and accountability for the management of risks associated with vendors and business partners.
4) Establishes Communication Protocols for Vendors and Business Partners—The entity establishes communication and resolution protocols for service or product issues related to vendors and business partners.
5) Establishes Exception Handling Procedures From Vendors and Business Partners —The entity establishes exception handling procedures for service or product issues related to vendors and business partners.
6) Assesses Vendor and Business Partner Performance—The entity periodically assesses the performance of vendors and business partners.
7) Implements Procedures for Addressing Issues Identified During Vendor and Business Partner Assessments—The entity implements procedures for addressing issues identified with vendor and business partner relationships.
8) Implements Procedures for Terminating Vendor and Business Partner Relationships — The entity implements procedures for terminating vendor and business partner relationships.
9) Obtains Confidentiality Commitments from Vendors and Business Partners—The entity obtains confidentiality commitments that are consistent with the entity's confidentiality commitments and requirements from vendors and business partners who have access to confidential information.
10) Assesses Compliance With Confidentiality Commitments of Vendors and Business Partners — On a periodic and as-needed basis, the entity assesses compliance by vendors and business partners with the entity's confidentiality commitments and requirements.
11) Obtains Privacy Commitments from Vendors and Business Partners—The entity obtains privacy commitments, consistent with the entity's privacy commitments and requirements, from vendors and business partners who have access to personal information.
12) Assesses Compliance with Privacy Commitments of Vendors and Business Partners— On a periodic and as-needed basis, the entity assesses compliance by vendors and business partners with the entity's privacy commitments and requirements and takes corrective action as necessary.
Article ID: 248
Created: September 26, 2022
Last Updated: September 26, 2022
Author: Matthew Burdick
Online URL: http://www.compliancewiki.org/article/soc-2-managing-third-party-vendor-and-partners-risk-cc9-2-248.html