What to Consider Before Partnering with a Vendor: Ensuring Strong Internal Security Practices

You’ve heard it in the headlines time and again: “significant data compromises, including breaches impacting millions of users across various vectors.” A notable example was AT&T’s two major breaches in 2024, where sensitive customer information, including social security numbers, account details, and other critical data—was accessed by hackers.  

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While you may think, “Well, I used a different vendor for my internet, cable, or phone services, so my data is safe,” it is crucial to recognize that security risks do not stop at your personal immediate service providers. As an organization, have you considered the internal security practices of the vendors you partner with to manage your data and intellectual property?

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Let’s face it: the data landscape is vast, and hackers are continuously developing methods to breach systems and access sensitive information. Whether through phishing, clickjacking, keylogging, SQL injections, DDoS (Denial of Service) attacks, social engineering, or an ever-growing list of other techniques, the threats are omnipresent. Adding insult to injury, cybercriminals are increasingly leveraging Artificial Intelligence to exploit vulnerabilities and compromise even well-secured systems.  

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As you look to partner with vendors for your organizational needs, it is imperative to ensure that they have their security practices in order. Here are key considerations to help you vet a potential vendor before forming a partnership:

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1. Assess Security Policies and Compliance Standards

• Inquire about the vendor’s security policies, including how they manage access control, data encryption, and incident response.

• Verify if they follow relevant industry standards and regulations (e.g., GDPR, HIPAA, PCI DSS) that govern data protection in your sector.

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2. Evaluate Data Handling Practices

• Understand how the vendor collects, processes, and stores your data. Look for transparency regarding data flow and ownership.

• Ask about their policies regarding data retention and deletion, ensuring that sensitive information is not held longer than necessary.

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3. Review Incident Response Plans

• Investigate the vendor’s protocols for responding to security breaches or data compromises. A well-documented incident response plan reflects their preparedness to mitigate risks.

• Inquire if they have a history of managing breaches effectively and how they communicated with affected clients during those incidents.

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4. Scrutinize Third-Party Assessments and Certifications

• Request documentation of third-party security audits and assessments, such as SOC 2 Type II, ISO 27001, or similar certifications, to ensure that the vendor’s security posture is validated by independent experts.

• An audit provides insights into their internal controls, enabling you to gauge their commitment to keeping security and compliance.

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5. Verify Security Infrastructure and Technology

• Explore the vendor’s infrastructure, including the security technologies they use. Consider whether they use firewalls, intrusion detection systems, encryption methods, and other security measures.

• Evaluate their ability to adapt to new threats by implementing robust security protocols, including MFA (Multi-Factor Authentication) and advanced threat detection systems.

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6. Understand Training and Awareness Programs

• Inquire about employee training initiatives regarding cybersecurity awareness and best practices. Vendors with rigorous training programs are generally less prone to human error that can lead to breaches.

• Assess whether they engage in regular security drills or assessments to evaluate their staff's response readiness to potential threats.

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7. Industry Reputation and Reviews

• Research the vendor’s reputation in the industry by examining reviews, testimonials, and case studies. Insights from other clients can provide valuable information about their reliability and performance.

• Engage with their existing customers to gather feedback about their experiences with the vendor's security practices.

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As cyber threats evolve, it is essential for organizations to adopt a proactive approach when selecting vendors. While the services they offer are crucial, understanding their internal security practices is equally important in protecting your organizational data. Ensuring a comprehensive evaluation of potential vendors will significantly mitigate risks associated with data breaches and enhance your overall security posture. Choose wisely, as your vendor's security practices could very well translate into the protection of your most sensitive data and intellectual property.

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As organizations navigate the complexities of data protection and vendor management, it’s clear that robust security practices are no longer optional—they’re essential. At Collective Insights, we help organizations safeguard their data and intellectual property through comprehensive data protection strategies and vendor management frameworks. Our tailored approach ensures that you not only select the right vendors but also establish security practices that mitigate risks and enhance resilience. By partnering with us, you’ll gain the expertise needed to protect your most valuable assets in an ever-evolving threat landscape. Learn more about how we can support your organization’s data protection efforts here.