In today’s interconnected environment, public-sector agencies frequently work with multiple third-party vendors, each with potential access to critical systems and sensitive data. While these partnerships are essential, they also create potential entry points for cybersecurity threats. Here’s a breakdown of key strategies to manage vendor-related risks effectively.
Establish Clear Compliance Requirements
The first step in mitigating third-party risk is setting clear contractual obligations. Vendors, especially those dealing with sensitive data, should adhere to the National Institute of Standards and Technology (NIST) guidelines and other relevant industry standards. For example, government agencies should require vendors to meet FedRAMP or StateRAMP compliance for cloud services. By embedding these requirements into contracts, agencies can better ensure that vendors maintain a consistent baseline of security practices.
Auditing and Monitoring
Auditing is essential to verifying that vendors are complying with agreed-upon security standards. Contracts should stipulate that agencies can audit vendor systems and data-handling processes, particularly for vendors providing managed or hosted services. Audits may vary depending on the agency’s requirements but should ideally be annual at a minimum or ad hoc if specific concerns arise. Further, vendors should be open to regular compliance assessments to confirm that they meet security standards.
Access Control and Real-Time Monitoring
Access controls are crucial for managing vendor interactions with agency systems. A robust access policy should specify when and how vendors can access systems, documenting each entry and exit. Real-time monitoring or logging helps detect unauthorized activity, ensuring that vendors don’t make unintended changes or leave systems vulnerable. For example, high-security sectors such as finance or law enforcement often monitor vendors closely during each session, tracking any configuration changes to maintain system integrity.
Insist on Clear SLAs and Defined Recovery Expectations
Agencies should negotiate service-level agreements (SLAs) that outline clear security and recovery timeframes. For example, if an agency requires systems to be operational within two hours of a disruption, the vendor must be prepared to meet these expectations. Knowing a vendor's responsibilities versus the agency’s own helps prevent service lapses and ensures swift action during an emergency.
Prioritize U.S.-based Providers
Agencies should prioritize U.S.-based vendors for added security, especially when handling sensitive data. U.S.-based data centers and compliance with local regulatory requirements, such as state-level mandates, are beneficial in minimizing exposure to foreign cyberattackers. Cloud giants like Microsoft and Amazon Web Services have dedicated U.S.-based data centers, providing additional layers of compliance to meet federal requirements.
Further, limiting data storage and management to U.S.-based servers provides an additional layer of protection, especially against nations flagged for cyber threats. Agencies should verify that their vendors’ data centers are located domestically and not part of foreign entities potentially linked to hostile nation-states.
Understand Vendor-Compliance Limits
Not all vendors provide the same security assurances, particularly larger technology providers. Agencies must understand each vendor’s compliance boundaries, noting where their responsibilities end, and the agency’s own obligations begin. This understanding is crucial in a Software as a Service (SaaS) environment, where the agency may be responsible for aspects like patch management and updates.
Navigating vendor cybersecurity risks demands a proactive approach, blending clear contractual terms with rigorous monitoring and compliance standards. MCP subject-matter experts are skilled and experienced and available to provide valuable guidance — please reach out.
Heather Pettit is MCP’s vice president of court technologies. Email her at HeatherPettit@MissionCriticalPartners.com