Vendor Third-Party Risk Management
How it Works
Our Vendor Risk Management (VRM) service helps organizations identify, assess, and remediate security risks introduced by external service providers, suppliers, or other third parties. This offering supports two distinct scopes:
Ongoing Vendor Risk Management: Continuous oversight, vendor onboarding, and performance monitoring.
One-Time Assessment: A targeted, point-in-time evaluation of vendor risk posture, culminating in actionable remediation steps.
Objectives:
Create consistent vendor onboarding and screening.
Align vendor due diligence with recognized industry standards.
Produce transparent risk assessments and reporting.
Mitigate security exposures and maintain compliance with frameworks.
Enhance governance across the entire vendor lifecycle.
Key Deliverables
Throughout the phases below, clients receive:
Vendor Due Diligence Questionnaires & Checklists
Risk Assessment Scorecards & Gap Analysis
Contractual / SLA Guidance
Remediation & Governance Roadmaps
Ongoing Monitoring Reports (if ongoing engagement)
Process & Results
Phase 1: Scoping & Classification
Activities:
Vendor Inventory & Segmentation: Build or refine a comprehensive list of active vendors, categorize by criticality and data sensitivity.
Framework Applicability Review: Identify which standards (ISO 27001, HIPAA, PCI-DSS, etc.) are relevant to each vendor.
Deliverables:
A Vendor Inventory document or register, highlighting risk tiers (High, Medium, Low)
Defined Scoping Report clarifying which controls or frameworks to apply
Value: Ensures clarity on how many vendors you have, their respective risk levels, and the compliance environment they must adhere to.
Phase 2: Risk Assessment & Gap Analysis
Activities:
Questionnaire & Evidence Collection: Using standard questionnaires (aligned with NIST, SOC 2, PCI) to gather vendor security details.
Risk Scoring & Gap Identification: Score vendor posture, highlight deficiencies or red flags (e.g., missing encryption, no MFA).
Deliverables:
Risk Assessment Scorecards for each vendor or vendor type
Gap Analysis table mapping shortfalls against the chosen frameworks
Value: Provides an objective measure of vendor security maturity, enabling leadership to prioritize remediation for the most critical shortfalls.
Phase 3: Contractual Controls & Remediation Planning
Activities:
Contract / SLA Review: Propose or revise key clauses (breach notification, data handling, right-to-audit, HIPAA BAA for healthcare, etc.)
Remediation Action Plans: Develop targeted steps for vendor improvements, e.g., policy updates, tech controls, or training.
Deliverables:
Contractual Guidance Packet: Clause recommendations, data protection addenda
Remediation Roadmap: List of actions for each vendor or vendor category, plus timeline
Value: Reduces liability exposure and solidifies vendor agreements. Ensures the highest-risk issues are tackled promptly, while clarifying responsibilities for both client and vendor.
Phase 4: Implementation & Monitoring
Activities:
Policy & Process Integration: Embed VRM processes into existing procurement workflows.
Ongoing Vendor Performance Tracking: Periodic reviews of vendor status and updated risk scores.
Deliverables:
Monitoring Dashboard / Reports: Summaries of vendor compliance, new or emerging risks
Implementation Checkpoints: Confirmation that contract changes or recommended controls were put into practice
Value: Proactively detects deviations in vendor performance, enabling timely action. Establishes a continuous cycle of vendor oversight.
Phase 5: Final Reporting & Continuous Improvement
Activities:
Final Consolidated Reporting: Provide a comprehensive VRM overview—progress, outstanding issues, successes.
Lessons Learned & Future Maturity Steps: Suggest enhancements for the next iteration of VRM or expansions (e.g., FedRAMP for cloud providers, advanced threat intel integration).
Deliverables:
VRM Program Summary Report: Compilation of all phases, results, and recommended next steps
Long-Term Governance Strategy: A flexible plan to evolve with new regulations or business changes
Value: Ensures a lasting framework for vendor oversight. Clients gain both short-term fixes and a path to deeper maturity over time.
Business Value Delivered
Stronger Regulatory Compliance & Reduced Liabilities
- By systematically aligning vendor oversight with ISO 27001, NIST SP 800-53, HIPAA, PCI-DSS, and other frameworks, your organization demonstrates proactive compliance.
- Mitigates legal and financial risks due to potential breaches, fines, or noncompliance penalties.
Enhanced Vendor Relationships & Trust
- Clear security expectations and accountability mechanisms foster better communication and collaboration with vendors.
- Vendors meeting (or exceeding) baseline security requirements translate into fewer disruptions and more reliable service delivery.
Improved Operational Efficiency & Resource Focus
- Standardized questionnaires, risk scorecards, and contract templates significantly reduce administrative overhead.
- Automations or regular checkups free up internal teams to concentrate on strategic projects instead of repetitive vendor audits.
Business Reputation & Customer Confidence
- Demonstrating a robust vendor risk management program instills confidence among stakeholders, clients, and regulators.
- Potential customers often require evidence of third-party due diligence before signing large contracts or sharing sensitive data.
Resilience & Long-Term Scalability
- A well-defined VRM program evolves with your vendor ecosystem. As you add or replace vendors, the established lifecycle ensures consistent evaluations and minimal guesswork.
- Ongoing monitoring quickly flags potential security posture changes, making your supply chain more resilient to emerging threats.
Targeted Cost Savings & Prioritization
- Objective risk scoring allows leadership to allocate budget to the highest-impact areas (e.g., strengthening a high-risk vendor or investing in automation).
- Early detection of vendor weaknesses helps avoid costly incident response scenarios or contract disputes down the road.
Strategic Advantage & Competitive Differentiator
- Organizations with mature vendor management practices can position themselves as secure and reliable partners in the marketplace.
- In regulated industries, showcasing solid VRM credentials often paves the way for new business opportunities or streamlined audits.
Vendor Management & Third-Party Risk Assessment – Service Tiers & Pricing:
Service Tier | Scope & Deliverables | Ideal Use Case & Client Value | Pricing |
1. Individual Vendor Basic Assessment | – Scope: Evaluate security posture for a single vendor (or very few). Deliverables • Rapid Phase 1–2 approach (Scoping & Classification, Basic Risk Assessment)• Light contractual guidance but no long-term monitoring. | – Ideal Use: SMBs that need a quick snapshot of a new or critical vendor before signing major contracts or handling sensitive data.- Client Value: Pinpoints urgent security gaps or compliance issues, minimizing immediate risk exposure. | $2,500–$4,000 (one-time) |
2. Individual Advanced Assessment | – Scope: Deeper assessment for one high-impact vendor.- Deliverables:• Full coverage of Phases 1–3 (Scoping, Risk Analysis, Contractual Remediation Plan)• Short follow-up into Phase 4 for minimal monitoring or checkups. | – Ideal Use: SMBs with mission-critical vendors (e.g., handling PHI or payment data) requiring thorough review + partial remediation oversight.- Client Value: Offers advanced due diligence, bridging contractual fixes + vendor improvement steps. | $5,000–$8,000 (one-time) |
3. Comprehensive Vendor Management Program | – Scope: All five phases for multiple vendors, including repeated cycles of risk assessment (Phases 2–4) quarterly or semiannually.- Deliverables:• End-to-end VRM (onboarding, risk scoring, contract updates, monitoring dashboards, final reporting). | – Ideal Use: SMBs wanting long-term oversight for 10+ third parties or stricter compliance demands (HIPAA, PCI, etc.) –Client Value: Maintains continuous vendor risk visibility; quickly responds to posture changes; fosters more mature third-party security governance. | $10,000–$18,000/yr (ongoing) |
This structured approach enables Tech Jacks Solutions to provide precisely tailored vendor risk management services aligned with your business requirements, ensuring immediate actionable insights with future scalability through planned enhancements.
Control Mappings
| Control Category | ISO 27001 | NIST SP 800-53 | CIS Controls | HIPAA Security Rule | SOC 2 | PCI-DSS |
|---|---|---|---|---|---|---|
| Vendor Risk Assessment | A.15.1.2 | RA-3, RA-5 | CIS 4, 15 | 164.308(a)(1)(ii)(A) | CC9.2 | 12.8 |
| Vendor Security Controls Evaluation | A.15.2.1 | SA-9 | CIS 15 | 164.314(a)(1) | CC9.2 | 12.8 |
| Compliance & Contractual Controls | A.15.1.1, A.15.2.1 | SA-4, SA-9 | CIS 4, 15 | 164.314(a) | CC2.3 | 12.8.2 |
| Incident Response Readiness | A.16.1.7 | IR-4 | CIS 17 | 164.308(a)(6) | CC7.4 | 12.10 |
| Security Controls Effectiveness | A.14.2.9, A.12.6.1 | CA-2, CA-7 | CIS 6, 16 | 164.306(e) | CC4.1 | 6.2 |
| Information Security Policy | A.5.1.1, A.18.2.2 | PL-1, PL-2 | CIS 17 | 164.316(a) | CC5.3 | 12.1 |
| Incident Response Preparedness | A.16.1.1, A.16.1.5 | IR-8 | CIS 17 | 164.308(a)(6)(ii) | CC7.4 | 12.10 |
Vendor & Third-Party Risk Management Solution
Interested in learning more about our solution? Please visit the Solutions Page.
