An organization signs a contract with a new overseas logistics firm that handles shipment data. Management wants to safeguard sensitive information and confirm that the vendor’s practices are periodically reviewed. Which action best addresses these concerns?
Include data protection clauses in the vendor contract and schedule recurring audits to confirm alignment
Employ a security consultant to visit the vendor’s facility once when the project begins
Rely on the vendor’s public certification as sufficient to meet organizational requirements
Renew the agreement with the vendor every quarter without modifying the terms
Including explicit data protection responsibilities in the agreement and performing audits on a recurring basis establishes ongoing assurance that the vendor aligns with confidentiality and operational rules. Renewing a contract without specifying comprehensive oversight does not ensure consistent security measures. Relying on a public certification or conducting a single review also does not confirm continuous alignment with organizational standards.
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What are data protection clauses in vendor contracts?
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Why are recurring audits important for vendor compliance?
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What is the limitation of relying on public certifications for vendor security?