Your company is engaging with a new vendor that will provide a critical component for your product's manufacturing process. As part of the vendor selection process, you are tasked with performing a supply chain analysis. Which of the following actions is most essential to mitigate the risks associated with this new integration?
Perform an on-site security assessment of the vendor's facilities.
Review the vendor's security and compliance certifications.
Verify the financial stability of the vendor.
Check references from other companies that have worked with the vendor.
Reviewing the vendor's security and compliance certifications ensures that the supplier follows recognized industry standards and regulations (such as ISO 27001 or SOC 2). This provides independent assurance of the vendor's security posture and is typically the first due-diligence step before deeper, resource-intensive activities. Assessing financial stability or speaking with references helps manage business risk but does not directly validate security controls. Conducting an on-site assessment can be valuable later in the process, yet it is costly and often reserved for only the highest-risk suppliers after their documentation has been reviewed.
Ask Bash
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
What are some common security and compliance certifications to look for?
Open an interactive chat with Bash
Why is reviewing certifications essential before other due-diligence actions?
Open an interactive chat with Bash
What is the difference between an on-site security assessment and certification review?