Compliance as a Service and Third-Party Risk Management

Blog Post: Compliance as a Service and Third-Party Risk Management

Managing third-party risk is one of the most pressing challenges organisations face today. With increasing reliance on external vendors for critical operations coupled with rising cybersecurity threats, the need for robust third-party risk management (TPRM) has never been greater. Over the past 12 to 18 months, we’ve seen numerous high-profile attacks targeting third-party software vendors, causing significant disruptions for organisations reliant on these third parties.

This blog explores how Secure Step Forward’s Compliance as a Service (CaaS) can help organisations mitigate third-party risks, with a particular focus on supplier onboarding, supplier management, and outsourced application development activities, as outlined in ISO 27001.

The Importance of Third-Party Risk Management in 2025

Third-party relationships introduce unique risks that organisations must proactively manage. These include:

• Cybersecurity Vulnerabilities: Third-party vendors can act as entry points for attackers to infiltrate an organisation’s systems.

• Regulatory Compliance: Organisations are accountable for ensuring their suppliers meet regulatory requirements, such as those defined in ISO 27001.

• Operational Resilience: Disruptions to third-party services can cascade into operational challenges, impacting customer trust and regulatory standing.

Recent attacks on third-party software vendors demonstrate the critical importance of rigorous third-party risk management. For example, the SolarWinds attack, one of the most significant supply chain breaches, allowed attackers to infiltrate thousands of organisations, including government agencies and private firms, through compromised software updates. Similarly, the MOVEit Transfer breach exploited vulnerabilities in file transfer software to compromise sensitive data at multiple organisations. Another example is the Kaseya ransomware attack, which targeted a managed service provider and impacted hundreds of downstream customers globally. Furthermore, the CrowdStrike supply chain incident exposed gaps in security monitoring across third-party tools. These incidents highlight the cascading consequences of insufficient third-party security oversight.

Additionally, the rapid adoption of third-party productivity applications, often driven by AI advancements, presents new layers of complexity. Early adoption by end-users within organisations can lead to unvetted tools entering the workflow, increasing the risk of data exposure, compliance gaps, and unmonitored vulnerabilities.

ISO 27001 and Third-Party Risk Management

ISO 27001 provides a comprehensive framework for managing third-party risks, emphasising the importance of:

• Supplier Onboarding: Establishing rigorous due diligence processes to assess potential vendors' security posture and compliance.

• Supplier Management: Maintaining ongoing oversight of third-party relationships, including regular audits and performance evaluations.

• Application Development Controls: Ensuring outsourced development activities adhere to robust security standards and minimise risks associated with software vulnerabilities.

Key controls within ISO 27001 highlight the need for ensuring vendors meet your security and compliance requirements.

• Contractual Obligations: Requiring suppliers to comply with security requirements through well-defined contractual agreements.

• Access Management: Implementing controls to restrict third-party access to sensitive systems and data.

• Incident Reporting: Establishing processes for third parties to promptly report security incidents and breaches.

How Compliance as a Service (CaaS) Can Help

Secure Step Forward’s Compliance as a Service (CaaS) offering is designed to address the complexities of third-party risk management. Here’s how we can help:

1. Streamlined Supplier Onboarding

   • Conduct comprehensive due diligence to assess vendor security and compliance.

   • Develop risk assessment frameworks tailored to your organisation’s needs.

2. Ongoing Supplier Management

   • Implement continuous monitoring to track vendor performance and compliance.

   • Facilitate regular audits to ensure adherence to ISO 27001 requirements.

3. Application Development Oversight

   • Establish controls for secure application development when outsourcing to third parties.

   • Conduct vulnerability assessments and penetration testing on third-party software.

4. Incident Response Planning

   • Collaborate with third-party vendors to develop joint incident response plans.

   • Ensure clear communication channels for reporting and resolving security incidents.

Proactive Steps for Organisations

To strengthen third-party risk management, organisations should:

1. Assess Current Processes: Identify gaps in supplier onboarding and management procedures.

2. Enhance Oversight: Regularly review vendor compliance with security standards like ISO 27001.

3. Invest in Expertise: Partner with CaaS providers to streamline TPRM efforts and ensure resilience.

A Final Thought

The challenges of managing third-party risks are evolving rapidly. With cyberattacks targeting third-party software vendors rising, organisations must act decisively to protect their operations and stakeholders. Secure Step Forward’s Compliance as a Service offering provides the expertise, tools, and frameworks needed to navigate these challenges and build a more secure future.

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