+Review of Third-Party Services

Review of Third-Party Services

Description

Mechanisms exist to monitor, regularly review and assess External Service Providers (ESPs) for compliance with established contractual requirements for security, compliance and resilience controls.

Possible Solutions & Considerations

Micro-Small Business (<10 staff) / BLS Firm Size Classes 1-2

∙ Cybersecurity Supply Chain Risk Management (C-SCRM) program

Small Business (10-49 staff) / BLS Firm Size Classes 3-4

∙ Cybersecurity Supply Chain Risk Management (C-SCRM) program

Medium Business (50-249 staff) / BLS Firm Size Classes 5-6

∙ Cybersecurity Supply Chain Risk Management (C-SCRM) program

Large Business (250-999 staff) / BLS Firm Size Classes 7-8

∙ Cybersecurity Supply Chain Risk Management (C-SCRM) program

Enterprise (> 1,000 staff) / BLS Firm Size Class 9

∙ Cybersecurity Supply Chain Risk Management (C-SCRM) program

SCR-CMM

Level 0 Not Performed

Practices are non-existent, based on the inability to demonstrate an implemented and operational capability. A reasonable person would conclude the control is not being performed.

Level 1 Performed Informally

SCR-CMM Level 1 criteria definitions are not available for this control:
▪ A reasonable person would conclude this control requires a structured process.
▪ At this level of maturity, the "ad hoc" nature of performing a capability informally would indicate the intent of the control is not met due to a lack of consistency and formality.

Level 2 Planned Tracked

Third-Party Management (TPM) capabilities are requirements-driven, but are not standardized across the entity (e.g., local/regional level consistency). Capability criteria associated with this control reasonably expect the following criteria to exist:
▪ Policies and standards associated with TPM domain capabilities are formally documented and centrally-managed by the entity.
▪ Standardized Operating Procedures (SOP) associated with TPM domain capabilities are documented and maintained by process owners.
▪ IT and/or cybersecurity personnel work with business stakeholders and process owners to appropriately scope and reasonably implement cybersecurity and data protection controls associated with TPM domain capabilities to address applicable statutory, regulatory and/or contractual requirements for Technology Assets, Applications, Services and/or Data (TAASD).
▪ Third-party management-related controls are primarily administrative and preventative in nature (e.g., policies, standards and procedures & guidelines).
▪ Asset management may be a defined function (e.g., team or department) or assigned as an additional duty to existing IT and/or cybersecurity personnel.

Level 3 Well Defined

Third-Party Management (TPM) capabilities are standardized across the entity for applicability to People, Processes, Technologies, Data and/or Facilities (PPTDF) to ensure consistency for Technology Assets, Applications, Services and/or Data (TAASD). Capability criteria associated with this control reasonably expect the following criteria to exist:
▪ Policies and standards associated with TPM domain capabilities are formally documented and centrally-managed by the entity's Governance, Risk & Compliance (GRC) team, or similar function.
▪ Standardized Operating Procedures (SOP) associated with TPM domain capabilities are well-documented and kept current by process owners.
▪ A procurement team, or similar function, is appropriately staffed and supported to implement and maintain TPM domain capabilities.
▪ Technology is leveraged to enhance the efficiency and accuracy of third-party management operations (e.g., TPRM risk management solution and vendor management solution).
▪ The entity's Governance, Risk & Compliance (GRC) team, or similar function, works with business stakeholders and process owners to appropriately scope and reasonably implement cybersecurity and data protection controls associated with TPM domain capabilities to address Minimum Compliance Requirements (MCR) (e.g., applicable statutory, regulatory and/or contractual requirements) and Discretionary Security Requirements (DSR) (e.g., entity-required controls).
▪ An implemented and operational capability exists to monitor, regularly review and assess External Service Providers (ESPs) for compliance with established contractual requirements for security, compliance and resilience controls.

Level 4 Quantitatively Controlled

Third-Party Management (TPM) capabilities, in addition to being standardized across the entity and centrally managed to ensure consistency across Technology Assets, Applications, Services and/or Data (TAASD), efforts are metrics driven to provide sufficient insight for decision makers to predict optimal performance, ensure continued operations and/or identify areas for improvement. Capability criteria associated with this control reasonably expect the following criteria to exist:
▪ Applicable SCR-CMM Level 3 (Well Defined) capabilities are implemented and operational.
▪ Metrics reporting includes quantitative analysis of Key Performance Indicators (KPIs).
▪ Metrics reporting includes quantitative analysis of Key Risk Indicators (KRIs).
▪ Scope of metrics, KPIs and KRIs covers organization-wide cybersecurity and data protection controls, including functions performed by third-parties.
▪ Organizational leadership maintains a formal process to objectively review and respond to metrics, KPIs and KRIs (e.g., monthly or quarterly review).
▪ Based on metrics analysis, process improvement recommendations are submitted for review and are handled in accordance with change control processes.
▪ Business and technical stakeholders are involved in reviewing and approving proposed changes to evolve capabilities.

Level 5 Continuously Improving

Utilize SCR-CMM Level 3 or Level 4 (if available) criteria definitions:
▪ There are no defined Level 5 criteria, since it is reasonable to assume a continuously-improving process is not necessary to operationalize this control.
▪ Level 5 capabilities should be considered “world-class” where the control builds on Level 4 capabilities, but are continuously improving through Artificial Intelligence (AI) and/or Machine Learning (ML) technologies.
▪ While it may be possible to develop responsive capabilities for this control through the use of AI and/or ML technologies, the criteria would be organization-specific to define.

1. Ħarsa ġenerali

1.1 Referenzi

1.2 Rekwiżiti identifikati

1.3 Regolamenti relatati

2. Rekwiżiti identifikati

Rekwiżiti

3. Regolamenti relatati

Regolamenti
EULAW Artikolu 10 Ġestjoni tal-vulnerabbiltà u tal-patches
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EULAW Artikolu 28 Prinċipji ġenerali
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EULAW Artikolu 30 Dispożizzjonijiet kuntrattwali ewlenin
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EULAW Artikolu 21 Miżuri ta' ġestjoni tar-riskji taċ-ċibersigurtà
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EULAW Artikolu 28 6

6.   Fl-eżerċizzju tad-drittijiet tal-aċċess, tal-ispezzjoni u tal-awditjar fuq il-fornitur terz tas-servizzi tal-ICT, l-entitajiet finanzjarji għandhom, abbażi ta’ approċċ ibbażat fuq ir-riskju, jiddeterminaw minn qabel il-frekwenza tal-awditi u tal-ispezzjonijiet kif ukoll l-oqsma li għandhom jiġu awditjati billi jaderixxu ma’ standards tal-awditjar aċċettati b’mod komuni f’konformità ma’ kwalunkwe struzzjoni superviżorja dwar l-użu u l-inkorporazzjoni ta’ tali standards tal-awditjar.

Fejn l-arranġamenti kuntrattwali konklużi ma’ fornituri terzi ta’ servizzi tal-ICT dwar l-użu ta’ servizzi tal-ICT jinvolvu kumplessità teknika għolja, l-entità finanzjarja għandha tivverifika li l-awdituri, kemm jekk interni kif ukoll jekk esterni, jew diversi awdituri, għandhomx il-ħiliet u l-għarfien xieraq biex iwettqu l-awditi u l-valutazzjonijiet rilevanti.
EULAW Artikolu 30 3

3.   L-arranġamenti kuntrattwali għall-użu ta’ servizzi tal-ICT li jappoġġjaw funzjonijiet kritiċi jew importanti għandhom, minbarra l-elementi msemmija fil-paragrafu 2, jinkludu tal-inqas dan li ġej:

(a)

deskrizzjonijiet sħaħ tal-livell tas-servizz, inkluż aġġornamenti u r-reviżjonijiet tagħhom b’miri tal-prestazzjoni kwantitattivi u kwalitattivi preċiżi fil-limiti tal-livelli tas-servizz miftiehma biex jippermettu monitoraġġ effettiv mill-entità finanzjarja tas-servizzi tal-ICT u jippermettu t-teħid ta’ azzjonijiet korrettivi xierqa, mingħajr dewmien żejjed, meta l-livelli tas-servizz miftiehma ma jintlaħqux;

(b)

il-perjodi ta’ avviż u l-obbligi ta’ rappurtar tal-fornitur terz ta’ servizzi tal-ICT lill-entità finanzjarja, inkluż in-notifika ta’ kwalunkwe żvilupp li jista’ jkollu impatt materjali fuq il-kapaċità tal-fornitur terz ta’ servizzi tal-ICT li jipprovdi s-servizzi tal-ICT li jappoġġjaw funzjonijiet kritiċi jew importanti b’mod effettiv f’konformità mal-livelli tas-servizz miftiehma;

(c)

rekwiżiti għall-fornitur terz ta’ servizzi tal-ICT biex jimplimenta u jittestja pjanijiet ta’ kontinġenza tan-negozju u biex ikollu fis-seħħ miżuri, għodod u politiki ta’ sigurtà tal-ICT li jipprovdu livell xieraq ta’ sigurtà biex l-entità finanzjarja tipprovdi s-servizzi tagħha skont il-qafas regolatorju tagħha;

(d)

l-obbligu tal-fornitur terz ta’ servizzi tal-ICT li jipparteċipa u jikkoopera bis-sħiħ fit-TLPT tal-entità finanzjarja kif imsemmi fl-Artikoli 26 u 27;

(e)

id-dritt ta’ monitoraġġ, fuq bażi kontinwa, tal-prestazzjoni tal-fornitur terz ta’ servizzi tal-ICT, li jinvolvi dan li ġej:

(i)

id-drittijiet mingħajr restrizzjonijiet ta’ aċċess, spezzjoni u awditjar mill-entità finanzjarja, jew parti terza ddeżinjata, u mill-awtorità kompetenti, u d-dritt li jittieħdu kopji tad-dokumentazzjoni rilevanti fuq il-post jekk ikunu kritiċi għall-operazzjonijiet tal-fornitur terz ta’ servizzi tal-ICT, li l-eżerċizzju effettiv tagħhom mhuwiex imfixkel jew limitat minn arranġamenti kuntrattwali jew politiki ta’ implimentazzjoni oħrajn;

(ii)

id-dritt li jintlaħaq qbil fuq il-livelli alternattivi ta’ aċċertament jekk jiġu affettwati d-drittijiet ta’ klijenti oħra;

(iii)

l-obbligu tal-fornitur terz ta’ servizzi tal-ICT li jikkoopera bis-sħiħ matul l-ispezzjonijiet u l-awditi fuq il-post imwettqa mill-awtoritajiet kompetenti, mis-Sorveljant Ewlieni, mill-entità finanzjarja jew minn parti terza maħtura; u

(iv)

l-obbligu li jiġu pprovduti d-dettalji dwar l-ambitu, il-proċeduri li għandhom jiġu segwiti u l-frekwenza ta’ tali spezzjonijiet u awditi;

(f)

strateġiji ta’ ħruġ, b’mod partikolari l-istabbiliment ta’ perjodu ta’ tranżizzjoni adegwat obbligatorju:

(i)

li matulu l-fornitur terz ta’ servizzi tal-ICT ikompli jipprovdi l-funzjonijiet, jew is-servizzi tal-ICT rispettivi, bil-ħsieb li jitnaqqas ir-riskju ta’ tfixkil fl-entità finanzjarja jew biex jiġu żgurati r-riżoluzzjoni u r-ristrutturar effettivi tagħha;

(ii)

li jippermetti lill-entità finanzjarja temigra lejn fornitur terz ieħor ta’ servizzi tal-ICT jew taqleb għal soluzzjonijiet interni konsistenti mal-kumplessità tas-servizz ipprovdut.

Permezz ta’ deroga mill-punt (e), il-fornitur terz ta’ servizzi tal-ICT u l-entità finanzjarja li tkun mikrointrapriża jistgħu jaqblu li d-drittijiet tal-entità finanzjarja ta’ aċċess, spezzjoni u awditjar jistgħu jiġu ddelegati lil parti terza indipendenti, maħtura mill-fornitur terz ta’ servizzi tal-ICT, u li l-entità finanzjarja tista’ titlob informazzjoni u aċċertament fuq il-prestazzjoni tal-fornitur terz ta’ servizzi tal-ICT mill-parti terza fi kwalunkwe ħin.

Kwistjonijiet marbuta

Links
is related to Semi-Annual
is related to relative Control Weighting = 09
is related to Process
is related to Identify
is related to SCRM Focus Tier 2 OPERATIONAL
is related to SCRM Focus Tier 3 TACTICAL
blocks Business / Service Interruption
blocks Contractual Default / Termination
blocks Regulatory / Legal / Contractual Financial Liability
blocks Exposure from Unaddressed Vulnerabilities
blocks System / Service Compromise
blocks Loss of Authorization / Certification / License
blocks Unaddressed Security / Compliance Exposure
blocks Uncontrolled Third-Party Security / Privacy Exposure
blocks Lack of oversight of internal controls
blocks Lack of oversight of third-party controls
blocks Inability to Demonstrate Due Diligence / Due Care
blocks Unreliable Assurance / Decision Information
blocks Recovery Failure / Unacceptable Recovery Delay
blocks Undetected / Delayed Detection of Adverse Activity
blocks Third-Party Cybersecurity Compromise / Exposure
blocks Third-Party Physical Security Disruption / Exposure
blocks Sub-Tier / Fourth-Party Supply Chain Exposure
blocks Third-Party Legal / Compliance Exposure
blocks Harm from Unauthorized / Unintended Product or Service Use
blocks Third-Party Dependency Failure
blocks Counterfeit / Non-Conforming Component Impact
blocks Loss of Confidentiality
blocks Privacy Harm / Unauthorized Processing
blocks Drought & Water Shortage
blocks Earthquakes
blocks Fire & Wildfires
blocks Floods
blocks Hurricanes & Tropical Storms
blocks Landslides & Debris Flow
blocks Pandemic (Disease) Outbreaks
blocks Severe Weather
blocks Space Weather
blocks Thunderstorms & Lightning
blocks Tornadoes
blocks Tsunamis
blocks Volcanoes
blocks Winter Storms & Extreme Cold
blocks Malicious Cyber Activity
blocks Dysfunctional Management Practices
blocks Human Error
blocks Technical / Mechanical Failure
blocks Statutory / Regulatory / Contractual Change
blocks Data Quality Degradation / Data Poisoning
blocks Fraud, Corruption and/or Intentional Criminal Conduct
blocks Conflict of Interest (COI) / Undue Influence / Insider Misconduct
blocks Economic Shock / Market Disruption
blocks Foreign Ownership, Control, or Influence (FOCI)
blocks Geopolitical Conflict / Government Intervention
blocks Sanctions / Trade Restriction Disruption
blocks Supplier Financial Distress / Insolvency
blocks Workforce Shortage / Loss of Critical Skills / Labor Disruption
blocks PS-01.05B
blocks PS-01.06B
blocks DEV-02.01AC
blocks SSO-01.01B
blocks SSO-01.02AC
blocks SSO-04.01B
blocks SSO-05.01B
blocks SSO-05.02B
blocks SSO-05.03B
blocks SSO-05.04B
blocks SSO-05.07B
blocks SSO-05.01AC
blocks SSO-05.03AC
blocks SSO-06.02B
is blocked by TPM-15 Review of Third-Party Services – Assessment Procedure
blocks SR-06 Supplier Assessments and Reviews
blocks SR-06(01) Testing and Analysis
blocks SR-06 [M] Supplier Assessments and Reviews
blocks SR-06 [H] Supplier Assessments and Reviews
blocks 03.16.03 External System Services
blocks 03.17.02 Acquisition Strategies, Tools, and Methods
blocks GV.SC-07 The risks posed by a supplier, their products and services, and other third parties are understood, recorded, prioritized, assessed, responded to, …
blocks ID.IM-01 Improvements are identified from evaluations
blocks ID.IM-02 Improvements are identified from security tests and exercises, including those done in coordination with suppliers and relevant third parties
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