1. Purpose:
The Vendor Management Policy establishes guidelines and procedures for evaluating, selecting, and managing third-party vendors and service providers. The primary goal is to ensure that vendors meet the organization's security and privacy requirements, mitigate risks associated with outsourcing, and maintain the confidentiality, integrity, and availability of organizational data and resources.

2. Scope:
This policy applies to all third-party vendors and service providers engaged by the organization to provide goods or services, including but not limited to software vendors, cloud service providers, and contractors. It encompasses vendor selection, contracting, monitoring, and oversight processes.

3. Vendor Selection:
a. Due Diligence: Prior to engaging a new vendor, due diligence will be conducted to assess the vendor's capabilities, reputation, financial stability, and compliance with relevant laws, regulations, and industry standards.
b. Risk Assessment: Vendors will be assessed based on the potential risks they pose to the organization, including risks related to data security, privacy, business continuity, and regulatory compliance.
c. Vendor Evaluation: Vendors will be evaluated against predefined criteria, including security controls, data protection measures, service levels, and contractual terms, to ensure alignment with organizational requirements.

4. Contractual Requirements:
a. Security and Privacy: Contracts with vendors will include provisions requiring compliance with security and privacy requirements, including data protection, confidentiality, and incident response obligations.
b. Service Levels: Service level agreements (SLAs) will be established to define performance expectations, availability targets, and response times for vendor services.
c. Data Protection: Vendors will be required to implement appropriate measures to protect organizational data, including encryption, access controls, and data retention policies.

5. Monitoring and Oversight:
a. Vendor Performance: Vendor performance will be monitored regularly against established SLAs and performance metrics to ensure that service levels are met and maintained.
b. Security Assessments: Periodic security assessments and audits may be conducted to evaluate vendor compliance with security requirements and identify any vulnerabilities or risks.
c. Incident Response: Vendors will be required to report security incidents and data breaches promptly and cooperate with the organization in investigating and mitigating incidents.

6. Vendor Compliance:
a. Compliance Reviews: Vendors will be subject to periodic compliance reviews to verify adherence to contractual requirements, regulatory obligations, and industry standards.
b. Remediation: Vendors found to be non-compliant with security or privacy requirements will be required to implement corrective actions and remediation measures within specified timeframes.
c. Termination: Non-compliance with security or privacy requirements may result in termination of the vendor relationship, subject to contractual provisions and legal considerations.

7. Responsibilities:
a. Procurement Team: Responsible for vendor selection, due diligence, and contract negotiation.
b. Business Units: Responsible for identifying vendor requirements, defining service expectations, and evaluating vendor performance.
c. Information Security Team: Responsible for assessing vendor security posture, monitoring vendor compliance, and conducting security assessments.

8. Compliance:
This policy is designed to ensure compliance with regulatory requirements, industry standards, and organizational security and privacy policies related to vendor management. Non-compliance with this policy may result in disciplinary action, up to and including termination of employment or contract.

9. Review and Revision:
This policy will be reviewed periodically and updated as necessary to reflect changes in business requirements, technology, or regulatory requirements. Employees involved in vendor management activities will be notified of any changes to the policy and provided with appropriate training and guidance.

By adhering to this Vendor Management Policy, the organization can effectively evaluate, select, and manage third-party vendors and service providers, mitigate risks associated with outsourcing, and safeguard the confidentiality, integrity, and availability of organizational data and resources.