Your data security standards are at risk. How will you convince a reluctant third-party vendor to comply?

Having to educate your vendor about data security in this time and age might be one of the first reasons you should stop working with that vendor, depending on the industry your business operates in.

I would do this by first defining what is at risk and the punishment of not following our data protection methods, stressing that non-compliance may affect both of our companies' reputations and workings. I would then explain our security protocols as a win-win, in the sense that they protect not only our data but also the vendor's. I'd say, "Sure; let's work together to figure out what your problem is and solve it, or not at sit their standards". In addition, I would list some competitors who are doing this already to ensure that our requests can be met by the industry. I would also make sure that they have an open line of communication with me throughout the program if there are any questions or concerns.

To convince a reluctant third-party vendor to comply with your data security standards, focus on clear communication and highlighting the mutual benefits. Explain the importance of data security for protecting both your customers and their reputation. Share real-world examples of the consequences of data breaches and emphasize that compliance is not just a regulatory requirement but a critical business need. Offer support in understanding and implementing the necessary security measures. Build trust by showing that adhering to these standards will strengthen the partnership and reduce risks for both parties.

I have worked with several vendors and SaaS providers that were definitely reluctant in this space. It is imperative to make communicate that your business stands above the rest and warrants additional data security standards. If you can share your skills and practices with the vendor, and show them how they can elevate other customers you have the will have the best opportunity to convince them. I often relate the standards to industry best practices, such as SOC compliance or NIST published guidance.

Education and mutual trust are not enough to ensure your vendor takes security seriously, or as serious as it is required by your business environment, so I would say contractual obligations negotiated together with your legal team, listing vendor liabilities in case of a breach and/or other security incidents that could leave your organisation exposed is a must. The agreements should also clearly state your data privacy requirements as data security and data privacy should go hand in hand and this part should cover the jurisdictions your business operates in.

Not just monitor progress but set the clear expectations and deadlines for remediating any vendor non-compliance, depending on the severity of the non-compliance. Make that an integral part of your monitoring process.

The organization should frame strong data security compliance as an essential business requirement in their policies, not just as another technical requirement. They should also leverage peer pressure by sharing examples of other vendors who have successfully implemented similar security measures. Additionally, offering incentives, if feasible, for identifying weak security controls or successfully implementing critical standards that could further encourage compliance.