Best Approach for Managing Third-Party Risk

D.

Managing third-party risk is a critical component of an organization's overall risk management strategy. Third-party vendors or partners can introduce new risks or amplify existing ones, making it essential for information security managers to have a robust third-party risk management program in place. Among the options given, the BEST approach for an information security manager to manage third-party risk effectively is option C: "Ensure risk management efforts are commensurate with risk exposure."

Option A: "Ensure controls are implemented to address changes in risk" is an essential practice but not necessarily the BEST approach for managing third-party risk. Implementing controls is a reactive approach to address changes in risk, but it may not adequately manage risks associated with third-party relationships, as the controls may not always be effective in addressing the risks introduced by third-party vendors.

Option B: "Ensure senior management has approved the vendor relationship" is important, but it does not necessarily ensure that the third-party relationship is adequately managed for information security risks. Senior management's approval is a critical step in the vendor selection process, but it does not guarantee that the vendor's security controls are appropriate for the organization's risk appetite.

Option D: "Ensure vendor governance controls are in place" is also an essential practice, but it only focuses on managing third-party risk through governance controls. Governance controls, such as contractual obligations and performance metrics, are essential for ensuring vendor accountability and compliance, but they do not address the specific risks associated with the vendor relationship.

Option C: "Ensure risk management efforts are commensurate with risk exposure" is the BEST approach for an information security manager to manage third-party risk effectively. It requires the information security manager to conduct a thorough risk assessment of the third-party relationship and determine the appropriate risk management measures needed to mitigate those risks. This approach ensures that the information security manager has a comprehensive understanding of the risks associated with the third-party relationship and can allocate resources appropriately to manage those risks.

In conclusion, the BEST approach for an information security manager to manage third-party risk effectively is to ensure that risk management efforts are commensurate with the risk exposure. This approach allows the information security manager to have a comprehensive understanding of the risks associated with the third-party relationship and allocate resources appropriately to manage those risks.