The process undertaken by an organization to understand the possible risks that follow by using a vendor’s product or service is known as Vendor Review. It is an ongoing process that enables an organization to maintain its security practices while using a product or service. A vendor review assesses the capacity of a vendor to maintain effective and proper security practices, including other performance elements that prove to be critical for an organization. This process is essential when you share critical data about the organization with vendors.
Since every organization employs different types of vendors for products and services, it is only plausible for them to have different processes for vendor review. Any vendor review will help you study a range of risk-prone areas highlighting the risks that working with a vendor could pose for your organization. These include the physical environment security of the vendor, organizational security, HR security, asset management, data handling measures of the vendor, and many more.
Establishing and maintaining proper vendor review processes over time will help your organization ensure that all the systems are being monitored effectively in terms of internal security and security of all the services that combine its operational ecosystem. If vendors have access to the internal data of a company or clients’ data, then the quality of their security practices is as important as that of the organization.