Certified: The CISSP Prepcast

Welcome to The Bare Metal Cyber CISSP Prepcast. This series helps you prepare for the ISC squared CISSP exam with focused explanations and practical context.
In this episode, we are diving into the crucial topic of Third-Party Risk Management. Today’s organizations are deeply interconnected with vendors, service providers, contractors, and suppliers. While these partnerships are essential for operational efficiency and innovation, they also introduce significant cybersecurity risk. The more third parties you work with, the more your attack surface expands—often beyond your direct control. Managing this exposure proactively is critical for protecting data, maintaining compliance, and ensuring operational resilience.
Third-party risk is one of the most common factors in modern cyber incidents. High-profile breaches have occurred because vendors lacked adequate security, failed to notify their clients of incidents, or unknowingly served as entry points for more sophisticated attacks. As a future Certified Information Systems Security Professional, you must understand how to identify, assess, monitor, and manage these risks throughout the lifecycle of each relationship.
Let us begin by clarifying what third-party risk actually means. Third-party risk refers to the potential cybersecurity threats introduced through external relationships. These include vendors who provide software, hardware, or cloud services. They include consultants, maintenance providers, payment processors, and even janitorial or physical security companies with access to facilities or information systems.
The risk arises when these third parties fail to implement sufficient security controls, neglect compliance requirements, or experience incidents that can impact your organization. For example, a third-party vendor may fail to patch a vulnerability in their software. If your organization relies on that software, the unpatched system could expose your environment to exploitation.
Other common third-party risk scenarios include data breaches due to shared access, supply chain compromises where attackers modify hardware or software before delivery, and regulatory violations when third parties mishandle sensitive data. If the third party fails, your organization may still be legally or reputationally responsible.
That is why one of the first steps in third-party risk management is simply identifying all third-party relationships and evaluating how much access, data, and influence they have over your systems or processes. Without visibility, you cannot manage the risk. Mapping out your vendor ecosystem helps you understand where the exposures lie and which partners present the most risk.
Next, let us explore third-party risk assessment and due diligence. Before entering into any formal relationship with a vendor or external partner, a thorough risk assessment should be conducted. This assessment evaluates the third party’s security posture, looking at their policies, controls, infrastructure, and compliance track record.
Due diligence activities typically include detailed questionnaires, document reviews, third-party audit reports, background checks, and even site visits if appropriate. The goal is to verify that the third party follows best practices in cybersecurity, that their data handling procedures meet your expectations, and that they are capable of responding to incidents effectively.
Assessments should be prioritized based on the criticality of the service or product the third party provides. A vendor with access to sensitive customer data or administrative network privileges presents more risk than a vendor delivering non-sensitive marketing content. The higher the impact of a potential failure, the more detailed the assessment should be.
Risk assessments are not one-and-done tasks. Even after onboarding, continuous monitoring is essential. Threats evolve, vendors change ownership, and operational practices may degrade over time. A third party that was compliant last year might now be struggling to keep up with current standards. Ongoing due diligence ensures that your organization is not caught off guard by changes in third-party risk posture.
Let us now talk about contracts and security expectations. The best risk management intentions fall apart without strong, well-written agreements. Contracts are where your expectations become enforceable. Every contract with a third party should include specific, actionable terms related to cybersecurity.
These contracts should define the third party’s security responsibilities, such as data encryption, user access controls, breach notification procedures, and audit rights. They should outline who owns the data, who is responsible for protecting it, and what steps must be taken in the event of an incident. Clauses should also address confidentiality, liability, and termination conditions.
Service Level Agreements—or S L As—are another important tool. S L As define the expected level of performance, including availability, response times, and restoration timelines in the event of a failure or breach. They provide benchmarks for accountability and help guide escalation procedures when expectations are not met.
Contracts should not remain static. Security expectations must evolve, and contracts should be reviewed periodically to reflect new risks, regulations, or operational changes. These reviews should be formalized and involve collaboration between legal, security, and procurement teams. A strong contract is not just a legal safeguard—it is a critical operational document that aligns both parties on what must be done and how issues will be handled.
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Once a third-party relationship is active, management does not stop. It shifts into the ongoing relationship phase, where transparency, oversight, and communication are key. Regular check-ins with vendors help maintain awareness of their security posture and reinforce expectations.
Ongoing monitoring may include periodic security assessments, independent audits, and reviews of incident reports or system logs. Depending on the level of access, you may require the vendor to submit updated compliance documentation, conduct penetration tests, or participate in joint risk reviews.
Incident response coordination is another critical component. If the vendor experiences a breach, your organization needs to be notified immediately—and not weeks later. Contracts should require prompt breach notification, and your incident response plan should include predefined steps for involving third parties. Collaboration ensures a unified response, preserves evidence, and speeds up recovery.
Organizations should also maintain detailed records of all third-party relationships. This includes documentation of what data is shared, what access is granted, what services are used, and what risks have been identified. This information helps during audits, breach investigations, and continuity planning.
Ultimately, strong partnerships are based on mutual respect and shared commitment to security. Building trust with vendors makes it easier to discuss vulnerabilities, share threat intelligence, and respond collaboratively to changes in the environment.
Now let us talk about continuous improvement. Like every other aspect of cybersecurity, third-party risk management is not static. Lessons learned from incidents—either within your organization or from widely publicized industry events—should inform updates to your assessment tools, monitoring strategies, and contractual terms.
For example, if a vendor’s misconfigured cloud storage bucket leads to a data leak, that may prompt your organization to revise its cloud security assessment criteria. If a global supply chain breach exposes new vulnerabilities, it may lead to more rigorous review processes for hardware vendors.
Training your internal staff on how to evaluate third-party risks, how to use assessment tools, and how to enforce security terms in contracts strengthens your overall capabilities. A well-informed workforce can spot red flags early, ask the right questions, and hold vendors accountable.
Feedback loops also help refine your processes. Vendors may offer insights about what works and what creates friction. Collaborating to improve assessments and expectations benefits both sides and encourages greater cooperation. Third-party risk management should not feel like a police activity—it should feel like a partnership.
The ultimate goal is to develop a mature third-party risk management program. This program evolves alongside the organization. It accounts for new threats, integrates with procurement and legal workflows, and reflects the unique risk profile of the business. Maturity means consistency, accountability, and foresight.
A mature program does not wait for problems to arise—it anticipates them, prepares for them, and responds with agility. It involves all stakeholders, from executive leadership to frontline employees, and it views every vendor as part of the organization’s extended risk perimeter.
Thank you for tuning into the CISSP Prepcast by Bare Metal Cyber. Visit baremetalcyber.com for additional episodes, comprehensive CISSP study materials, and personalized certification guidance. Strengthen your understanding of Third-Party Risk Management, and we'll consistently support your path to CISSP certification success.