In today’s regulatory environment, your business is only as secure as the vendors you trust.

Regulatory Pressure Is Increasing—And So Are Third-Party Expectations
For many companies, compliance used to be an internal concern. But that’s no longer the case. Regulators now expect businesses to evaluate the cybersecurity posture, privacy practices, and operational resilience of every third-party vendor they work with—especially those with access to sensitive data or business-critical systems.

Whether it’s a cloud provider, software vendor, payment processor, or outsourced IT support team, the risks are real. According to the Ponemon Institute, 51% of data breaches in the last year involved a third party.

Federal and state regulations—from HIPAA and GLBA to the FTC Safeguards Rule—have updated requirements that make vendor risk management a formal part of compliance. It’s not enough to have a signed contract or a SOC 2 report on file. Companies must demonstrate they’ve done due diligence, implemented appropriate controls, and continue to monitor third-party performance over time.

Key Elements of a Vendor Risk Management Program
A mature vendor risk management (VRM) program includes several core components:

  • Initial Risk Assessments: Evaluating each vendor’s access, data handling practices, and security controls.

  • Contractual Protections: Ensuring contracts contain security obligations, breach notification timelines, and audit rights.

  • Ongoing Monitoring: Reviewing vendors annually, tracking compliance, and documenting any incidents.

  • Offboarding Procedures: Ensuring secure data return or destruction when a relationship ends.

Too often, businesses rely on outdated spreadsheets or informal processes that can’t scale—or survive an audit. And without a clear framework, even well-meaning companies can miss warning signs that a vendor poses a growing risk.

Compliance+ Helps You Build a Defensible Program
At Cost+, our Compliance+ service is designed to help you implement and maintain a vendor risk management program that meets regulatory expectations and reduces business exposure.

We assist with vendor classification, policy creation, risk assessments, and documentation—ensuring your program aligns with today’s compliance standards.

For companies without internal compliance teams, or those needing to modernize outdated processes, we provide the tools and expertise to close the gap and protect your business from third-party fallout.

Schedule Your Free Consultation Today
Learn how Cost+ can help you build a stronger vendor risk program—book your free consultation with our Compliance+ team today.