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:
Clause 13 mandates any data exchange that occurs between the organisation and third parties is secure. Key controls:
Clause 9 requires organisations to monitor and evaluate supplier performance, thus ensuring third-party compliance is reviewed as part of ISMS performance.
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 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:
Legal agreements protect organisations by clearly defining security expectations and responsibilities. Organisations must create supplier agreements that:
Early identification of security weaknesses prevents costly incidents and breaches. UNder ISO 27001 organisations must:
Regular oversight ensures suppliers maintain security standards throughout the relationship. Organisations must:
Technology suppliers require special attention due to their direct access to systems and data. Organisations must implement Control A.5.21 by:
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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