Security Spotlight: Vendor Management

A System and Organization Controls (SOC) 2 examination attests that your organization meets the criteria established by the American Institute of Certified Public Accountants (AICPA). The Common Criteria used in a SOC 2 examination cover a variety of system controls that ensure that your organization is operating with best cybersecurity practices. One way to ensure your organization is operating with best practices is to have adequate vendor management practices in place.

What is Vendor Management?

Vendor management is the process of ensuring your organization’s vendors are operating with best cybersecurity practices and securely processing sensitive data. Typically, vendor management consists of completing a vendor risk assessment and obtaining vendor SOC reports. Organizations will usually obtain such SOC reports from cloud service providers, software providers/developers, and financial service organizations. These vendors often have access to sensitive information and are thus a source of risk for any organization. These SOC reports cover how the vendor handles and protects data. Ensuring your organization’s vendors are also operating with best cybersecurity practices helps reduce the risk of possible cybersecurity risks and attests to your organization’s commitment to security.

Vendor Management and SOC 2

A SOC 2 report evaluates whether your organization has adequate controls in place to mitigate cybersecurity risks. One way your organization can demonstrate its commitment to cybersecurity is by performing vendor due diligence. In combination with other controls, vendor management ensures your organization is operating with best cybersecurity practices. By adequately preparing for security incidents, your organization is one step closer to successfully completing your SOC 2 examination.

Helping You Get There…

No matter where you are on your SOC 2 journey, Boulay is dedicated to helping you get there. To learn more about our SOC 2 reporting services, connect with a member of Boulay’s Risk Advisory Team today.