When did you last audit your suppliers?

Many organisations overlook a proactive approach to supply chain management until they experience a data breach or other cyber incident—which can be a very costly mistake. Conducting regular audits of your suppliers isn’t just good practice; it’s essential for protecting your organisation.

By understanding the security posture of your third-party vendors, you can minimise vulnerabilities within your supply chain that could result in data breaches, operational or technical disruption, or reputational damage.

With a consistent auditing process, you not only safeguard your operations but also position your organisation as a leader in responsible supply chain management.

Here are some valuable tips around how and when to audit your suppliers, recommended by PGI's Senior Security Consultant.

When and how often should I audit my suppliers?

As a minimum, you should be asking all your suppliers to complete a comprehensive set of questions to gauge their alignment with your security standards, so you can mitigate risks and ensure compliance with best practices.

To maintain a secure supply chain, we recommend conducting small-scale audits at key touchpoints—such as during contract renewals—and annual full-scale reviews to account for changes in process or infrastructure. This ensures that suppliers are continuously meeting regulatory obligations and adhering to best practices. Regular audits will also help you identify misalignments in processes, providing the opportunity to address issues before they escalate.

When is it time to reconsider your supplier relationships?

Switching suppliers can be a stressful and complex process (and one we’d all rather avoid if we can), but it’s important to recognise your organisation’s accountability for any weaknesses in your supply chain. That’s why it’s so critical to ensure that your suppliers’ security standards align with yours. A vendor’s failure to follow security best practices could disrupt business operations, compromise sensitive data, and break client trust. A benefit of regularly auditing your suppliers is if weaknesses are identified and documented, you can use this evidence to address compliance gaps or, if necessary, reconsider the partnership.

What are the legal implications of failing to audit your suppliers?

Regardless of the cybersecurity frameworks your organisation follows, there’s a legal obligation, under the General Data Protection Regulation (GDPR), to ensure your suppliers protect sensitive data, and implement appropriate technical and organisational controls to ensure data protection. This can be evidenced by completing regular due diligence audits.

Due diligence checks should be built into your procurement process to manage compliance and risk management for best practice purposes; i.e. before entering a contract with a new supplier or before the renewal process.

Outsourcing your supply chain risk management

With the advancement of technology and compliance requirements around client data, more organisations are choosing to outsource their supply chain risk management.

Outsourcing your supply chain risk management involves delegating this process to a third-party. There are lots of benefits to this, including:

• Freeing up resource within your organisation, so your team can focus on their core work.
• Gaining valuable expertise and support from consultants who know the ins and outs of the processes.
• Proactively managing and mitigating risks.
• Remaining compliant with regulatory frameworks.
• Protecting the reputation of your business.
• Streamlining internal processes.

How PGI can support you

We’re a trusted partner for supply chain risk management services. We prioritise a human-led approach to support our clients through the digital space. Our wide range of expertise enables us to offer a tailored service designed to meet your individual business requirements.

When it comes to managing your supply chain, we’ll provide you with unbiased, impartial insights that mean you will be working with a complete and accurate picture of your suppliers' operations, and recommendations on how to mitigate risks.

By partnering with PGI, you have the advantage of a holistic view of your supply chain, combining cybersecurity, digital investigations, and compliance expertise all under one roof. Our detailed reports go beyond surface-level findings, uncovering critical insights, including areas that might not be readily apparent or that suppliers may prefer to keep hidden.

Our services include:

• Supplier audits: We can conduct thorough audits of your suppliers, including due diligence questionnaires tailored to your specific needs or in line with a particular framework.

• Governance and compliance: Our Information Assurance team takes a governance-focused approach, ensuring your suppliers adhere to the necessary legislation and standards.

• Digital investigations: Should you require an in-depth review of your suppliers' digital footprint, our Digital Investigations team provides expert analysis to safeguard your company’s reputation and operations.

Outsourcing your supply chain management ensures you can mitigate risks and easily adhere to regulatory frameworks. PGI can give you peace of mind and a holistic view of your security posture. Get in touch with us today to get started.