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DS2.3 - Supplier Risk Management

This topic is intended to enable collaboration and sharing of information to facilitate a better understanding and approach to implementing this COBIT control objective based on the risk, value and guidance provided by its corresponding control practices.

COBIT Control Objective DS2.3 - Supplier Risk Management is contained within Process Popup Manage Third-party Services.

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Supplier Risk Management

Identify and mitigate risks relating to suppliers’ ability to continue effective service delivery in a secure and efficient manner on a continual basis. Ensure that contracts conform to universal business standards in accordance with legal and regulatory requirements. Risk management should further consider non-disclosure agreements (NDAs), escrow contracts, continued supplier viability, conformance with security requirements, alternative suppliers, penalties and rewards, etc.

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Value Drivers

  • Compliance with legal and contractual requirements
  • Reduced incidents and potential losses
  • Indentification of low-risk, well-managed suppliers
  Risk Drivers
  • Non-compliance with regulatory and legal obligations
  • Security as well as other incidents
  • Financial losses and reputational damage because of service interruption

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  1. Identify and monitor supplier risks in accordance with the organisation’s established risk management process.
  2. Identify and document in the contract supplier risks (and remedies) associated with the supplier’s inability to fulfil the contractual agreement(s).
  3. When defining the contract, consider remedies including software escrow agreements, alternative suppliers or standby agreements in the event of supplier failure.
  4. Review all contracts for legal and regulatory requirements.

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10 Jun 2013
ISACA International Event
Berlin, Germany
Early bird deadline has been extended: save over US $350 when you register by 1 May. Learn from industry-leading IT experts at Insights 2013. This is a unique opportunity to discover revolutionary new ideas at the world’s premier business event.

Journal Articles: 163 total

Volume 3, 2013
by Vasant Raval, CISA, DBA
Cheating, of course, is a type of indiscretion and suggests the degradation of moral fabric as much as other indiscretions such as financial fraud.
Volume 2, 2013
by Nikesh Dubey, CISA, CISM, CRISC
Almost all information security and assurance programs speak about management’s commitment as the most important driver for the success of any information security program in an organization.
Volume 2, 2013
by Rajesh Bhatia, CISA, CGEIT, PMP, MDP
This article discusses the benefits of using the framework of the five IT governance focus areas.
Volume 2, 2012
by Gan Subramaniam, CISA, CISM, CCNA, CCSA, CIA, CISSP, ISO 27001 LA, SSCP
What should be the recovery strategy that I must impose on the vendor to ensure an effective recovery of the services, if a crisis were to ever occur?
Volume 1, 2012
by Prakhar Srivastava and Tarun Verma
Log management can play a pivotal role in addressing PCI DSS requirements, be a success factor and enabler for safeguarding cardholder transaction data, and provide a secure and vulnerability-free environment for cardholders.
Volume 6, 2011
by Harmeet Kaur, CEH
As today’s business climate demands greater efficiency, security and regulatory compliance, the need for an effective IAM process has never been more pressing.

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მოგესალმებით, მოკლედ, იმდენი რამ მოხდა 2012-ში, რომ დავდექი რთული ამოცანის წინაშე, უბრალოდ ჩამომეთვალა საინტერესო უსაფრთხოების მოვლენები, თუ გამეცხრილა და ერთი-ორზე უფრო დეტალურად გვესაუბრა. გადავწყვიტე ნაზავით დავემშვიდობოთ 2012-ს, და 2013-ზე გადავერთოთ ...
Posted By : David190 | 0 comments
On March 1st,  I was invited to speak at the CampIT conference on Enterprise Risk/Security Management at Rosemont Convention Center. Before me there were two speakers. The first presenter spent an hour presenting the story from the trenches of technolog...
Posted By : Umesh391 | 1 comments
7 Mar 2012
To share various espects in cloud computing viz; history, availability, deployment, integrity, availability, confidentiality, security, cloud sharing etc.
Posted By : MoizB583519 | 2 comments
In the UK? Report UK bank internet phishing scams! Are you getting lots of fake internet phishing scam e-mails. I've been reporting and forwarding mine to the UK bank safe group; http://www.banksafeonline.org.uk/report_­scam.html­ This site was set...
Posted By : PLim | 0 comments
8 Jun 2010
Hello, this is my first post on my blog at ISACA.  I feel honored to be among the many members of the ISACA organization and look forward to exchanging ideas, issues, and changes in the Information Security and all of the areas of Risk, Governance, and Co...
Posted By : Donald515 | 0 comments