Regular assessment, internal audit, monitoring and evaluation of results is the key to addressing ever evolving network security.
We should understand that the fundamental structure of networking and its security policies does not change. There can be additional requirements that need to be applied, but most often they are related to risk assessment, monitoring, evaluation etc.
For example: Segregated networking is a fundamental standard as per ISO 27001, the only thing changed between 2013 and 2022 versions is that this requirement got reorganised and included under technical controls.
Supply chain security has become increasingly critical in today’s interconnected business environment, especially when organisations engage third-party vendors and outsourcing operations.
ISO 27001 requires The organisation shall ensure that externally provided processes, products or services that are relevant to the information security management system are controlled.
The standard does not mandate any document but having it in writing is a good practice and practical to document policies and procedures that the third part should follow in-order to operate with the company.
In the 2022 version, the Annex A has introduced new controls related to information security for use of cloud services. Control Processes for acquisition, use, management and exit from cloud services shall be established in accordance with the organisation’s information security requirements.
Managing Cybersecurity with Third-Party Vendors and Outsourcing Operations:
With the acceleration of digital transformation, more organisations rely on third-party vendors and outsourcing partners for essential functions. This reliance extends beyond traditional supply chains to include software, cloud services, and IT infrastructure providers. However, this dependency comes with increased cybersecurity risks.
A cyber incident affecting one vendor can create a ripple effect across the entire supply chain, potentially impacting an organisation’s data, systems, and reputation. Recent breaches demonstrate how attackers often exploit vulnerabilities in third-party systems to gain access to larger networks, underlining the need for comprehensive supply chain security.
ISO 27001 and Supply Chain Security
ISO 27001 provides a structured approach for securing information assets, including those shared with third parties.
Annex A of the ISO 27001 standard includes 5 specific controls on managing supplier relationships, ensuring that vendors and outsourced operations comply with an organisation’s information security requirements:
1. Information security in supplier relationships:
Processes and procedures shall be defined and implemented to manage the information security risks associated with the use of supplier’s products or services. The first step in managing supply chain security is conducting a thorough risk assessment of each third-party vendor.
ISO 27001 encourages organisations to assess the potential risks vendors pose to information security. This process involves identifying the types of data and systems vendors access, understanding how they store and manage sensitive data, and assessing their cybersecurity practices.
By vetting vendors based on risk, organisations can make informed decisions on whom to engage with and what controls to apply.
2. Addressing information security within supplier agreements:
Relevant information security requirements shall be established and agreed with each supplier based on the type of supplier relationship.
ISO 27001 mandates that organisations define information security requirements in their vendor contracts. These requirements include explicit cybersecurity standards that vendors must adhere to, such as data encryption, secure data transmission, and regular vulnerability assessments.
Clauses addressing incident response protocols, notification timelines for data breaches, and responsibilities in case of a cybersecurity incident should also be included. This approach ensures that vendors understand and commit to the organisation’s security expectations from the outset.
3. Managing information security in the information and communication technology (ICT) supply chain:
Processes and procedures shall be defined and implemented to manage the information security risks associated with the ICT products and services supply chain.
As organisations often share sensitive data with vendors, ISO 27001 stresses the importance of data protection and privacy. Organisations must define data-handling policies that vendors should follow, covering aspects such as data encryption, retention periods, and deletion protocols.
These policies align with ISO 27001’s focus on protecting the confidentiality, integrity, and availability of information. In doing so, organisations can reduce the risk of data breaches or unauthorised access.
4. Monitoring, review and change management of supplier services:
The organisation shall regularly monitor, review, evaluate and manage change in supplier information security practices and service delivery.
This includes keeping up with regulatory changes, adapting to new threats, and reassessing risks in the supply chain. Regularly updating security practices, conducting mock drills, and holding awareness sessions with vendors foster a culture of vigilance and adaptability, ensuring that supply chain security remains robust against emerging risks.
5. Information security for use of cloud services:
Processes for acquisition, use, management and exit from cloud services shall be established in accordance with the organisation’s information security requirements.
Access to sensitive information should be limited to authorised personnel only, with strict policies in place for granting, reviewing, and revoking access.
In addition, continuous monitoring of vendor activity within the organisation’s network is crucial. Tools such as Security Information and Event Management (SIEM) systems can detect suspicious behaviour, flagging potential security issues before they escalate.
Organisations should establish a communication protocol with vendors to facilitate prompt incident reporting and coordinate response efforts.
Managing Outsourced Operations:
In addition to vendor management, outsourcing core functions like IT support or customer service to third parties requires extra attention. When outsourcing, organisations must consider the security practices of these providers as an extension of their internal processes.
ISO 27001 recommends treating outsourced operations similarly to internal departments by conducting risk assessments, setting clear contractual obligations, and establishing oversight mechanisms.
By applying the same strategy to outsourced partners as with in-house operations, organisations can ensure consistency in cybersecurity practices across all operational facets. Additionally, integrating outsourced functions into the organisation’s ISMS promotes alignment with ISO 27001’s overall information security strategy.
The Business Benefits of a Secure Supply Chain
In summary, securing the supply chain as per ISO 27001 goes beyond protecting an organisation’s own assets:
Companies which your outsource should also be considered as supplier
Document the risks like loss of data, unauthorised access.
Minimum security requirements must be included in agreement.
Monitor with regular security checks with reports, SLAs etc.
New control: A.5.23: Process is set up for the use of cloud services.
A robust supply chain security framework reassures clients of an organisation’s commitment to safeguarding sensitive information, fostering trust and potentially leading to new business opportunities.
It extends to creating a resilient ecosystem where all parties share the responsibility of cybersecurity.
By implementing ISO 27001 controls in managing third-party vendors and outsourcing, organisations can mitigate risks, ensure compliance, and build a trusted reputation, all while strengthening the foundation of their digital operations.
Conclusion:
Organisations worldwide face increasing pressure to manage and protect sensitive information effectively.
As cyberattacks grow in scale and sophistication, maintaining robust security is essential, but this often raises concerns about cost.
Implementing an Information Security Management System (ISMS) aligned with ISO 27001 can offer several financial benefits beyond security compliance.
I hope this article can help you answer some of the compliance needs.
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Kamalika Majumder
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