In this Risk Ledger Explainer, you will learn about ISO 27001 requirements relating to third-party risk management (TPRM) and what your organisation can do to implement a world-class TPRM and supply chain risk management programme beyond compliance.
Third-party Risk Management (TPRM) in ISO 27001, the international standard for information security management systems (ISMS), equips organisations with methods to identify, manage, and reduce risks from their corporate supply chains.
Organisations seeking ISO 27001 certification must implement specific requirements if they are to effectively manage their cyber security, including pertaining to managing risks in their supply chains, i.e. in the external vendors and service providers they work with and which might either be integrated into their own IT infrastructure or handle sensitive data on their behalf. The ISO 27001 standard offers a comprehensive guide for organisations to achieve this.
In this Risk Ledger Explainer, we examine the key TPRM requirements of ISO 27001 and what organisations must do to meet them.
Organisations intending to protect their information assets build a structured ISMS through ISO 27001 that incorporates TPRM as a key component. The standard holds particular importance in finance, healthcare, and in the technology sector, where data sensitivity and regulatory oversight demand strict compliance.
Importantly, certification demonstrates to clients and regulators that an organisation maintains strong cyber security practices.
As already alluded to, ISO 27001 also places a significant emphasis on third-party risks because organisations depend so heavily today on many external vendors for critical services. These relationships create vulnerabilities that attackers increasingly target to get access to the data and systems of their intended victims.
The standard integrates TPRM throughout its clauses and requires organisations to implement specific strategies to ensure adequate security controls at suppliers are in place to reduce third-party risks. Thus organisations must treat supply chain security as an essential component of their ISMS.
ISO 27001 embeds third-party risk management requirements across five key clauses. Each clause addresses specific aspects of third-party and supply chain risk management.
Clause 8 stipulates that organisations must manage risks, including those posed by third parties. It ensures third-party risks are integrated into the broader risk management process.
Clause 15 directly addresses supplier relationships and their-party services. 5 key controls of Clause 15 are:
ISO 27001:2013 Annex A.15 outlines key security requirements for managing supplier relationships within third-party risk management (TPRM). Organisations must establish clear security policies for supplier relationships (A.15.1.1) to ensure all third parties comply with internal and regulatory standards. These policies should be reinforced through supplier agreements (A.15.1.2), which must specify security expectations, including data protection, incident response, and compliance obligations. Security controls should also extend beyond direct suppliers to the broader ICT supply chain (A.15.1.3), ensuring that subcontractors and service providers adhere to the same security standards. To maintain an effective security posture, organisations must implement ongoing supplier monitoring (A.15.2.1) through audits, performance reviews, and compliance checks. Additionally, any changes to supplier services (A.15.2.2)—such as contract modifications or system updates—must be carefully assessed to prevent new vulnerabilities. By following these guidelines, organisations can mitigate third-party cyber risks and maintain a secure supply chain ecosystem.
Clause 13 mandates any data exchange that occurs between the organisation and third parties is secure. Key controls:
ISO 27001:2013 Annex A.13.2 focuses on securing information transfer to prevent data breaches and unauthorised access. Organisations must establish policies for secure information transfer (A.13.2.1) that define how data is shared, both internally and externally, covering encryption, access controls, and transmission methods. These policies should be reinforced through formal agreements (A.13.2.2) that outline security requirements for data transfer between organisations and third parties, specifying encryption standards, authentication mechanisms, and compliance obligations. Implementing these controls ensures the confidentiality, integrity, and availability of sensitive information during transmission.
Clause 9 requires organisations to monitor and evaluate supplier performance, thus ensuring third-party compliance is reviewed as part of ISMS performance.
ISO 27001:2013 Clause 9: Performance Evaluation mandates organisations to continuously monitor and assess supplier performance to ensure third-party compliance aligns with their Information Security Management System (ISMS). This includes conducting regular audits, performance reviews, and security assessments to verify that suppliers meet contractual and regulatory obligations. By integrating supplier evaluations into overall ISMS performance monitoring, organisations can identify security gaps, address risks proactively, and maintain a robust third-party risk management (TPRM) framework.
Clause 10 focuses on addressing continual improvement and corrective actions that involve third-party risks. It ensures that any developments in the field or lessons learned from supplier incidents lead to updates in organisations’ TPRM processes.
ISO 27001:2013 Clause 10: Continual Improvement emphasises the need for organisations to address third-party risks through ongoing improvements and corrective actions. It ensures that any new developments, emerging threats, or lessons learned from supplier incidents are integrated into the organisation’s third-party risk management (TPRM) processes. By continuously reviewing and refining supplier risk management practices, organisations can adapt to evolving security challenges, enhance their ISMS, and mitigate potential risks before they impact the business. This proactive approach ensures a resilient and secure supply chain.
ISO 27001 requires organisations to implement specific measures to manage supplier security risks. Each requirement touches on different aspects of third-party risk management.
A dedicated supplier security policy forms the foundation of effective third-party risk management. Organisations must create policies that:
A dedicated supplier security policy is essential for effective third-party risk management (TPRM), ensuring suppliers align with organisational security standards and regulatory requirements. It should define key security controls, including access management, endpoint security, and incident response, to mitigate cyber threats. Clear requirements must also be established for handling organisational data—covering access, processing, storage, and transmission—to prevent data breaches and supply chain vulnerabilities.
Legal agreements protect organisations by clearly defining security expectations and responsibilities. Organisations must create supplier agreements that:
Legal agreements play a critical role in protecting organisations by clearly defining security expectations and responsibilities with suppliers. Organisations must draft supplier agreements that address security requirements for system and data access, ensuring that only authorised personnel can access sensitive information. These agreements should also outline data handling procedures, specifying how suppliers must manage, process, and protect data throughout its lifecycle. IT infrastructure management must be included to ensure suppliers adhere to secure practices when maintaining and operating technology systems. Additionally, supplier contracts should include specific information security clauses that define the level of security required, as well as address ICT supply chain risks, ensuring that subcontractors and third parties meet the same security standards. Finally, agreements should explicitly define security expectations for service providers, ensuring that service delivery meets the organisation’s security requirements and mitigates potential vulnerabilities.
Early identification of security weaknesses prevents costly incidents and breaches. UNder ISO 27001 organisations must:
Early identification of security weaknesses is essential to prevent costly incidents and breaches. Under ISO 27001, organisations must take proactive steps to safeguard against third-party risks. First, risk assessments should be conducted to identify potential vulnerabilities in third-party relationships, ensuring that any security gaps are detected early. Organisations must also verify ISO 27001 compliance before engaging with new suppliers, ensuring they meet the required security standards from the outset. To maintain security, regular audits of existing suppliers should be performed to monitor compliance and identify any emerging risks. Finally, it’s crucial to document and track supplier security practices, maintaining an up-to-date record of their security posture and any changes, ensuring continuous improvement in third-party risk management.
Regular oversight ensures suppliers maintain security standards throughout the relationship. Organisations must:
Regular oversight is essential to ensure that suppliers consistently maintain security standards throughout the relationship. Organisations must monitor supplier service delivery continuously, checking that security measures are adhered to over time. It's vital to verify ongoing compliance with security requirements, ensuring that suppliers remain aligned with agreed-upon security protocols and regulations. Organisations should also focus on maintaining agreed security levels throughout the supplier relationship, addressing any deviations promptly. Finally, a regular review of supplier performance against service agreements helps identify areas for improvement and ensures that security expectations are consistently met. This proactive approach reduces risk and strengthens the overall security posture.
Technology suppliers require special attention due to their direct access to systems and data. Organisations must implement Control A.5.21 by:
Technology suppliers require special attention due to their direct access to organisational systems and sensitive data. To meet Control A.5.21 under ISO 27001, organisations must take several proactive steps. First, they should ensure information security throughout the ICT supply chain, implementing controls to mitigate risks at every level. This includes agreeing on security levels with all supply chain parties, ensuring that both parties are aligned on security expectations and responsibilities. Additionally, organisations should establish processes to assess security risks before engaging suppliers, ensuring that any potential vulnerabilities are identified and addressed upfront. By focusing on these measures, organisations can maintain a secure ICT supply chain and minimise the risks posed by technology suppliers.
Risk Ledger offers a supply chain cyber risk management platform that helps organisations assess and monitor their suppliers' security practices.
Our standardised assessment framework incorporates requirements from major security standards including ISO 27001, NIST, and NCSC's CAF, but is specifically tailored to effective supply chain risk management. Beyond our standardised framework that all of the now over 8000 suppliers already using Risk Ledger have to complete, and are continuously monitored against, organisations can now add specialised assessment domains especially relevant for their industry as add-on domains. These include, for example, domains such as ESG, financial stability, and business continuity requirements.
While ISO 27001 helps organisations secure their own operations, it doesn't fully address supply chain risk management. Risk Ledger incorporates all the crucial elements from multiple standards to enable world-leading and comprehensive third-party risk management. We also verify ISO 27001 compliance claims by collecting and analysing evidence directly from suppliers.
Furthermore, organisations use Risk Ledger's innovative TPRM platform to enable organisations to:
Over 8,000 suppliers trust and use our platform at no cost. They benefit from our intuitive interface, guided assessment process, and dedicated support.
As Bogdan M. Gagea, Senior Security Manager, Zendesk Ireland states:
“Our experience with Risk Ledger has been overwhelmingly positive…I've found Risk Ledger to be an invaluable platform in streamlining our subscribers' approach to third-party risk management and helping us build and maintain customer trust.”
Modern organisations face growing security risks as they work with more and more external suppliers and service providers. ISO 27001 helps address this by requiring five essential security controls:
However, implementing these requirements creates operational challenges. Security teams must gather evidence, check claims, watch for problems, and stay ahead of new threats—often across thousands of supplier relationships.
Risk Ledger helps organisation transform third-party risk management by connecting their entire supply chain into an active cyber defence network, bringing every supplier into clear view, and providing access to deep risk insights, and enabling a faster response to emerging threats—all from a single, powerful platform.
By combining requirements from major security standards including ISO 27001, NIST, and NCSC's CAF into a comprehensive assessment framework specifically designed for supply chain risk management, we help organisations:
Start securing your supply chain today and book a demo to see how Risk Ledger can transform your supplier security management.
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