Your organization is in the process of selecting a new vendor for cloud storage services. As part of this process, what should be conducted to evaluate and address the risks associated with the potential vendor prior to formalizing an agreement?
A vendor risk assessment is the specific process used to identify, evaluate, and mitigate the risks associated with a potential third-party vendor before signing an agreement. This assessment examines a vendor's security controls, compliance posture, and operational resilience. While a vendor risk assessment is a key component of the overall Due Diligence process, "due diligence" is a broader term that also includes investigating a vendor's financial stability and reputation. A Right-to-Audit Clause is a contractual term included in an agreement, not an assessment performed beforehand. A Business Impact Analysis is an internal process to determine how disruptions could affect business operations and is not used to evaluate external vendors.
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What is a vendor risk assessment?
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What factors are typically evaluated in a vendor risk assessment?
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How does a vendor risk assessment differ from due diligence?