What role does 'Due Diligence' play in managing third-party vendor risks?
- It assesses the financial stability of the vendor
- It deals with post-contractual performance monitoring
- It focuses on legal aspects of vendor contracts
- It involves evaluating and verifying a vendor's reliability, capability, and integrity
Due diligence in managing third-party vendor risks involves evaluating and verifying a vendor's reliability, capability, and integrity before entering into a contractual relationship. This pre-contractual assessment helps organizations make informed decisions and establish partnerships with vendors who align with their security and operational requirements. Knowledge of due diligence practices is vital for effective risk mitigation in vendor management.__________________________________________________
Loading...
Related Quiz
- In the context of mobile apps, what is the purpose of using a mobile device management (MDM) solution?
- Which document typically outlines the procedures for maintaining operations during a disaster?
- In an out-of-band SQL injection attack, data is retrieved using:
- A cybersecurity firm uses AI to analyze network traffic and detect anomalies. This is an example of ____________ in action.
- What is the primary purpose of data encryption in terms of data privacy?