policy Enterprise

Third-Party and Supplier Security Policy

Ensure robust security, risk management, and compliance across all third-party and supplier relationships with our comprehensive governance policy.

Overview

This policy governs the security, risk, and compliance requirements for all third-party and supplier relationships, detailing due diligence, contractual safeguards, ongoing monitoring, and offboarding procedures for third parties handling organizational data or services.

Comprehensive Supplier Oversight

Mandates rigorous security controls, risk tiering, and audits for all third-party providers throughout their service lifecycle.

Contractual Security Safeguards

Ensures supplier contracts include breach notification, data handling, right-to-audit, and enforceable compliance clauses.

Continuous Compliance Monitoring

Requires regular performance reviews, certification audits, and incident escalation to maintain third-party accountability.

Read Full Overview
The Third-Party and Supplier Security Policy (P26) provides a comprehensive governance framework for establishing, managing, and continuously overseeing secure relationships with third-party suppliers, contractors, cloud providers, and service organizations. This policy is designed for organizations committed to maintaining rigorous information security standards when outsourcing or procuring services that access, process, or integrate with critical business assets and systems. The policy applies to all supplier engagements that involve sensitive data, production environments, or support for key business functions, covering both direct suppliers and their subcontractors. It outlines detailed roles and responsibilities for the Chief Information Security Officer (CISO), Procurement and Vendor Management, Information Security and Risk Leads, Business Relationship Owners, and the Legal and Compliance functions. Each role contributes to the secure lifecycle management of suppliers, from initial risk assessment and contract negotiation to ongoing monitoring and secure disengagement. Central to the policy is the requirement for a formal Third-Party Classification and Risk Tiering Model, grouping suppliers based on data access, service criticality, regulatory exposures, and third-party dependencies. All third-party engagements must adhere to a defined lifecycle approach: suppliers undergo pre-contract due diligence, risk assessment, and contractual security review; contracts must be equipped with enforceable security controls, including breach notification, right-to-audit, data handling, and specific requirements for the use of subcontractors. Suppliers are then continually monitored through certifications, SLA performance, security incident reporting, and changes to their services or personnel. If a supplier cannot fully meet security requirements, the policy mandates a formal exception request, with documentation, compensating controls, and executive approval. Exception status triggers frequent reviews and may result in renegotiated terms or supplemental audits. Suppliers found to be non-compliant face contractual penalties, suspension, or termination of services and access. Strict enforcement is ensured through scheduled compliance audits, supplier performance reviews, and disciplinary action for internal policy bypasses. The policy is reviewed at least annually or upon significant changes in the procurement strategy, regulatory landscape, or after major supplier incidents. All changes and audit outcomes are documented and communicated across the organization, maintaining a fully traceable and compliant third-party governance program.

Policy Diagram

Third-Party and Supplier Security Policy diagram illustrating supplier risk assessment, contractual onboarding, regular monitoring, exception management, and secure termination workflows.

Click diagram to view full size

What's Inside

Scope and Rules of Engagement

Supplier Due Diligence Requirements

Third-Party Risk Classification & Tiering Model

Contractual Security Clauses

Continuous Performance and Compliance Reviews

Termination and Offboarding Protocols

Framework Compliance

🛡️ Supported Standards & Frameworks

This product is aligned with the following compliance frameworks, with detailed clause and control mappings.

Framework Covered Clauses / Controls
ISO/IEC 27001:2022
8.1
ISO/IEC 27002:2022
NIST SP 800-53 Rev.5
EU GDPR
283233
EU NIS2
EU DORA
COBIT 2019

Related Policies

Information Security Policy

Establishes the overarching commitment to secure all organizational operations, including reliance on third-party suppliers and external service providers.

Risk Management Policy

Guides the identification, assessment, and mitigation of risks associated with third-party relationships, including inherited or systemic risks from supplier ecosystems.

Data Protection And Privacy Policy

Applies to all suppliers that handle personal data, requiring appropriate contractual terms, transfer safeguards, and privacy-by-design principles.

Access Control Policy

Controls how third-party personnel gain access to organizational systems, enforcing role-based permissions, session controls, and revocation procedures.

Logging And Monitoring Policy

Requires that supplier access to systems be monitored, logged, and reviewed, particularly in environments where privileged or data-centric activities occur.

Incident Response Policy

Defines escalation procedures and breach reporting requirements for supplier-originated security events or joint investigations involving third-party systems.

About Clarysec Policies - Third-Party and Supplier Security Policy

Effective security governance requires more than just words; it demands clarity, accountability, and a structure that scales with your organization. Generic templates often fail, creating ambiguity with long paragraphs and undefined roles. This policy is engineered to be the operational backbone of your security program. We assign responsibilities to the specific roles found in a modern enterprise, including the CISO, IT Security, and relevant committees, ensuring clear accountability. Every requirement is a uniquely numbered clause (e.g., 5.1.1, 5.1.2). This atomic structure makes the policy easy to implement, audit against specific controls, and safely customize without affecting document integrity, transforming it from a static document into a dynamic, actionable framework.

Exception Management Built-In

Features a formal process for supplier security exceptions, requiring rationale, risk analysis, and time-bound controls.

Lifecycle Process Integration

Integrates security into procurement, onboarding, service monitoring, and offboarding for every supplier relationship.

Frequently Asked Questions

Built for Leaders, By Leaders

This policy was authored by a security leader with 25+ years of experience deploying and auditing ISMS frameworks for global enterprises. It's designed not just to be a document, but a defensible framework that stands up to auditor scrutiny.

Authored by an expert holding:

MSc Cyber Security, Royal Holloway UoL CISM CISA ISO 27001:2022 Lead Auditor & Implementer CEH

Coverage & Topics

🏢 Target Departments

IT Security Compliance Procurement Vendor Management

🏷️ Topic Coverage

Third Party Risk Management Supplier Management Compliance Management Access Control
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Third-Party and Supplier Security Policy

Product Details

Type: policy
Category: Enterprise
Standards: 7