+Contract Flow-Down Requirements

Contract Flow-Down Requirements

Description

Mechanisms exist to ensure applicable security, compliance and resilience requirements are included in contracts that flow-down to applicable subcontractors and suppliers.

Possible Solutions & Considerations

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

∙ Cybersecurity Supply Chain Risk Management (C-SCRM) program
∙ Data Protection Impact Assessment (DPIA)
∙ Third-party contract requirements for cybersecurity controls

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

∙ Cybersecurity Supply Chain Risk Management (C-SCRM) program
∙ Data Protection Impact Assessment (DPIA)
∙ Third-party contract requirements for cybersecurity controls

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

∙ Cybersecurity Supply Chain Risk Management (C-SCRM) program
∙ Data Protection Impact Assessment (DPIA)
∙ Third-party contract requirements for cybersecurity controls

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

∙ Cybersecurity Supply Chain Risk Management (C-SCRM) program
∙ Data Protection Impact Assessment (DPIA)
∙ Third-party contract requirements for cybersecurity controls

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

∙ Cybersecurity Supply Chain Risk Management (C-SCRM) program
∙ Data Protection Impact Assessment (DPIA)
∙ Third-party contract requirements for cybersecurity controls

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.
▪ Procurement practices contractually require ESP to follow secure engineering practices as part of a broader Cybersecurity Supply Chain Risk Management (C-SCRM) initiative.
▪ A formal agreement exists between the organization and applicable third-parties that includes a Non-Disclosure Agreement (NDA) addressing shared sensitive data.

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 ensure applicable security, compliance and resilience requirements are included in contracts that flow-down to applicable sub-contractors and suppliers.

Level 4 Quantitatively Controlled

Utilize SCR-CMM Level 3 criteria definitions:
▪ There are no defined Level 4 criteria, since it is reasonable to assume a quantitatively-controlled process is not necessary to operationalize this control.
▪ While it may be possible to develop “metrics-driven” capabilities for this control, the criteria would be organization-specific to define.

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. Översikt

1.1 Referenser

1.2 Identifierade krav

1.3 Relaterade regleringar

2. Identifierade krav

Krav

3. Relaterade regleringar

Regleringar
EULAW Artikel 29 Preliminär bedömning av IKT-koncentrationsrisker på entitetsnivå
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EULAW Artikel 21 Riskhanteringsåtgärder för cybersäkerhet
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EULAW Artikel 29 2

2.   Om de kontraktsmässiga arrangemangen om användning av IKT-tjänster som stöder kritiska eller viktiga funktioner inbegriper möjligheten att en tredjepartsleverantör av IKT-tjänster lägger ut IKT-tjänster som stöder kritisk eller viktig funktion på underentreprenad till andra tredjepartsleverantörer av IKT-tjänster, ska finansiella entiteter väga de fördelar och risker som kan uppstå i samband med en sådan underentreprenad, särskilt när det gäller en IKT-underleverantör som är etablerad i ett tredjeland.

Om de kontraktsmässiga arrangemangen gäller IKT-tjänster som stöder kritiska eller viktiga funktioner ska finansiella entiteter vederbörligen ta hänsyn till de insolvensrättsliga bestämmelser som skulle vara tillämpliga om IKT-tjänsteleverantören går i konkurs samt eventuella begränsningar som kan uppstå när det gäller skyndsam återställning av den finansiella entitetens data.

Om kontraktsmässiga arrangemang om användning av IKT-tjänster som stöder kritiska eller viktiga funktioner ingås med en tredjepartsleverantör av IKT-tjänster som är etablerad i ett tredjeland ska finansiella entiteter utöver de hänsynstaganden som avses i andra stycket även beakta överensstämmelsen med unionens dataskyddsregler och den faktiska efterlevnaden av rätten i det tredjelandet.

Om de kontraktsmässiga arrangemangen om användning av IKT-tjänster som stöder kritiska eller viktiga funktioner medger underentreprenad, ska finansiella entiteter bedöma om och hur potentiellt långa eller komplexa underentreprenadskedjor kan påverka deras förmåga att till fullo övervaka de avtalade funktionerna och den behöriga myndighetens förmåga att effektivt övervaka den finansiella entiteten i detta avseende.

Länkade ärenden

Länkar
is related to Annual
is related to relative Control Weighting = 09
is related to Process
is related to Protect
is related to SCRM Focus Tier 2 OPERATIONAL
is related to SCRM Focus Tier 3 TACTICAL
blocks Unauthorized Retention / Inability to Dispose of Data
blocks Contractual Default / Termination
blocks Regulatory / Legal / Contractual Financial Liability
blocks Loss of Authorization / Certification / License
blocks Unaddressed Security / Compliance Exposure
blocks Uncontrolled Third-Party Security / Privacy Exposure
blocks Lack of oversight of third-party controls
blocks Inability to Demonstrate Due Diligence / Due Care
blocks Unreliable Assurance / Decision Information
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 Dysfunctional Management Practices
blocks Human Error
blocks Statutory / Regulatory / Contractual Change
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 Sanctions / Trade Restriction Disruption
blocks Counterfeit / Non-Conforming Products
blocks Workforce Shortage / Loss of Critical Skills / Labor Disruption
blocks DEV-02.02B
blocks SSO-01.01B
blocks SSO-02.01B
blocks SSO-05.02B
blocks SSO-07.01B
blocks SSO-07.01AS
blocks Unauthorized Retention / Inability to Dispose of Data
blocks Contractual Default / Termination
blocks Regulatory / Legal / Contractual Financial Liability
blocks Loss of Authorization / Certification / License
blocks Unaddressed Security / Compliance Exposure
blocks Uncontrolled Third-Party Security / Privacy Exposure
blocks Lack of oversight of third-party controls
blocks Inability to Demonstrate Due Diligence / Due Care
blocks Unreliable Assurance / Decision Information
blocks Third-Party Cybersecurity Compromise / Exposure
blocks Third-Party Physical Security Disruption / Exposure
blocks Unauthorized Retention / Inability to Dispose of Data
blocks Contractual Default / Termination
blocks Regulatory / Legal / Contractual Financial Liability
blocks Loss of Authorization / Certification / License
blocks Unaddressed Security / Compliance Exposure
blocks Uncontrolled Third-Party Security / Privacy Exposure
blocks Lack of oversight of third-party controls
blocks Inability to Demonstrate Due Diligence / Due Care
blocks Unreliable Assurance / Decision Information
blocks Third-Party Cybersecurity Compromise / Exposure
blocks Third-Party Physical Security Disruption / Exposure
is blocked by TPM-14.1 Contract Flow-Down Requirements – Assessment Procedure
blocks SR-03(03) Sub-tier Flow Down
blocks 03.16.03 External System Services
blocks 03.17.02 Acquisition Strategies, Tools, and Methods
blocks 03.17.03 Supply Chain Requirements and Processes
blocks GV.OC-03 Legal, regulatory, and contractual requirements regarding cybersecurity - including privacy and civil liberties obligations - are understood and …
blocks GV.SC-02 Cybersecurity roles and responsibilities for suppliers, customers, and partners are established, communicated, and coordinated internally and …
blocks GV.SC-05 Requirements to address cybersecurity risks in supply chains are established, prioritized, and integrated into contracts and other types of …
blocks GV.SC-06 Planning and due diligence are performed to reduce risks before entering into formal supplier or other third-party relationships
blocks GV.SC-10 Cybersecurity supply chain risk management plans include provisions for activities that occur after the conclusion of a partnership or service …