DS2.3:
DS 2.3 Supplier Risk Management
Control Objective:
Identify and mitigate risks relating to suppliers’ ability to continue effective service delivery in a secure and efficient manner on a continual basis. Ensure contracts conform to universal business standards in accordance with legal and regulatory requirements. Risk management should further consider non-disclosure agreements (NDA), escrow contracts, continued supplier viability, conformance with security requirements, alternative suppliers, penalties and rewards, etc.
Applicability:
- Sarbanes-Oxley
- HIPAA
- GLBA
- PCI
- FISMA
- NIST SP 800-66
- Ditscap
- Control Exception
- User Defined
Risk Association Control Activities:
- 1. Risk: Third party service providers may not meet business, compliance and regulatory needs of the business inducing risk.
- a. SOX.1.5 A designated individual is responsible for regular monitoring and reporting on the achievement of the third-party service-level performance criteria.
- a. SOX.1.5 A designated individual is responsible for regular monitoring and reporting on the achievement of the third-party service-level performance criteria.
- 1. Risk: Third party service providers may not meet business, compliance and regulatory needs of the business inducing risk.
- 2. Risk: Third party service providers may not meet business, compliance and regulatory needs of the business inducing risk.
- a. SOX.1.24 Third-party service contracts address the risks, security controls and procedures for information systems and networks in the contract between the parties. .
- a. SOX.1.24 Third-party service contracts address the risks, security controls and procedures for information systems and networks in the contract between the parties. .
- 2. Risk: Third party service providers may not meet business, compliance and regulatory needs of the business inducing risk.
- PCI-12.8.1 Acknowledgement that the 3rd party is responsible for security of cardholder data in their possession.
- PCI-12.8.2 Ownership by each Payment Card brand, Acquirer, and Merchants of cardholder data and acknowledgement that such data can ONLY be used for assisting these parties in completing a transaction, supporting a loyalty program, providing fraud control services, or for others uses specifically required by law.
- PCI-12.8.3 Business continuity in the event of a major disruption, disaster or failure.
- PCI-12.8.4 "Audit provisions that ensure that Payment Card Industry representative, or a Payment Card Industry approved third party, will be provided with full cooperation and access to conduct a thorough security review after a security intrusion. The review will validate compliance with the Payment Card Industry Data Security Standard for protecting cardholder data."
- PCI-12.8.5 Termination provision that ensures that 3rd party will continue to treat cardholder data as confidential.
Implementation Guide:
Determine if the management of third-party services has been assigned to appropriate individuals.
Process Narrative
Insert a description of the process narration that is applicable to the existing control statement this narrative refers to.
Process Illustration
Insert a process diagram, flowchart or other visual representation here to illustrate the process narrative.
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Control Commentary
Insert a description of the control that is applicable to the existing control statement this commentary refers to.
Control Exception Commentary
Insert a description of the control exception that is applicable to the existing control statement this commentary refers to.
Evidence Archive Location
Insert Evidence Description Here.
Control Status and Auditors Commentary
Describe the condition of the applicable control and its effectiveness. Set the color icon to a redlock.jpg, yellowlock.jpg or greenlock.jpg.
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Remediation Plan
Insert remediation plan, applicability, or any information that indicates what needs to be done.
Supplemental Information:
ISO 17799 12.1 Security requirements of information systems
- Objective: To ensure that security is an integral part of information systems.
- Objective: To ensure that security is an integral part of information systems.
- Information systems include operating systems, infrastructure, business applications, off-the-shelf products, services, and user-developed applications. The design and implementation of the information system supporting the business process can be crucial for security. Security requirements should be identified and agreed prior to the development and/or implementation of information systems.
- Information systems include operating systems, infrastructure, business applications, off-the-shelf products, services, and user-developed applications. The design and implementation of the information system supporting the business process can be crucial for security. Security requirements should be identified and agreed prior to the development and/or implementation of information systems.
- All security requirements should be identified at the requirements phase of a project and justified, agreed, and documented as part of the overall business case for an information system.
- All security requirements should be identified at the requirements phase of a project and justified, agreed, and documented as part of the overall business case for an information system.
ISO 12.1.1 Security requirements analysis and specification Control.
- Statements of business requirements for new information systems, or enhancements to existing information systems should specify the requirements for security controls.
- Statements of business requirements for new information systems, or enhancements to existing information systems should specify the requirements for security controls.
- Implementation guidance
- Implementation guidance
- Specifications for the requirements for controls should consider the automated controls to be incorporated in the information system, and the need for supporting manual controls. Similar considerations should be applied when evaluating software packages, developed or purchased, for business applications.
- Specifications for the requirements for controls should consider the automated controls to be incorporated in the information system, and the need for supporting manual controls. Similar considerations should be applied when evaluating software packages, developed or purchased, for business applications.
- Security requirements and controls should reflect the business value of the information assets involved (see also 7.2), and the potential business damage, which might result from a failure or absence of security.
- Security requirements and controls should reflect the business value of the information assets involved (see also 7.2), and the potential business damage, which might result from a failure or absence of security.
- System requirements for information security and processes for implementing security should be integrated in the early stages of information system projects. Controls introduced at the design stage are significantly cheaper to implement and maintain than those included during or after implementation.
- System requirements for information security and processes for implementing security should be integrated in the early stages of information system projects. Controls introduced at the design stage are significantly cheaper to implement and maintain than those included during or after implementation.
- If products are purchased, a formal testing and acquisition process should be followed. Contracts with the supplier should address the identified security requirements. Where the security functionality in a proposed product does not satisfy the specified requirement then the risk introduced and associated controls should be reconsidered prior to purchasing the product. Where additional functionality is supplied and causes a security risk, this should be disabled or the proposed control structure should be reviewed to determine if advantage can be taken of the enhanced functionality available.
- If products are purchased, a formal testing and acquisition process should be followed. Contracts with the supplier should address the identified security requirements. Where the security functionality in a proposed product does not satisfy the specified requirement then the risk introduced and associated controls should be reconsidered prior to purchasing the product. Where additional functionality is supplied and causes a security risk, this should be disabled or the proposed control structure should be reviewed to determine if advantage can be taken of the enhanced functionality available.
- Other information:
- Other information:
- If considered appropriate, for example for cost reasons, management may wish to make use of independently evaluated and certified products. Further information about evaluation criteria for IT security products can be found in ISO/IEC 15408 or other evaluation or certification standards, as appropriate.
- If considered appropriate, for example for cost reasons, management may wish to make use of independently evaluated and certified products. Further information about evaluation criteria for IT security products can be found in ISO/IEC 15408 or other evaluation or certification standards, as appropriate.
ISO/IEC TR 13335-3 provides guidance on the use of risk management processes to identify requirements for security controls.
Implementation guidance:
Insert guidance in this section if it helps to elaborate upon the subject matter. Examples of evidence that would help guide the end user is desirable.