Security's Input on Outsourcing: Security Directors Can Help Their Companies Assess the Reliability of Third Parties before They Hire Them to Handle Vital Services

By Umanskiy, Ilya A. | Security Management, October 2006 | Go to article overview

Security's Input on Outsourcing: Security Directors Can Help Their Companies Assess the Reliability of Third Parties before They Hire Them to Handle Vital Services


Umanskiy, Ilya A., Security Management


WHEN YOUR COMPANY starts to consider the outsourcing option for a particular function, does the security department get involved in helping management make the right decision? For many security professionals, the answer is that they have no role in the process of selecting External Service Providers (ESPs) unless it involves the outsourcing of a security function. Yet, once you begin exploring the risks that outsourcing could bring to your organization, you will learn that security has an essential role to play even where the outsourced function is not a security service.

Today, the majority of security professionals get involved in due diligence for outsourcing only when invited by managers from other departments such as human resources, IT, and risk management. Through such invitations, security professionals get to work at the same time with their counterparts from the corporate privacy office, information security office, legal department, and other corporate groups.

Each participant in the due diligence process is required to complete a comprehensive review of the potential ESP by applying his or her expertise in a specific field. It is at such critical junctures when the opportunity to establish the framework for all future due diligence projects arises. And if a security professional becomes involved in the process, his or her contribution can help the organization minimize risk and ensure that future outsourcing strategies rely on baseline security standards.

Currently, due diligence for outsourcing is being handled primarily by business and corporate groups. But these groups have limited expertise in evaluating security risks, and cannot, therefore, reliably determine whether an ESP can, for example, be entrusted to protect a company's customer data as required by new federal regulations.

[ILLUSTRATION OMITTED]

Adequate due diligence for outsourcing cannot be completed without a comprehensive security assessment of the ESP, from its physical site layout and background screening practices to its emergency management processes and security awareness programs (new-hire and ongoing). It takes a security professional to perform such an assessment.

For example, in one organization clients from around the world contacted a company through its call center. The security manager was asked to review a potential service provider for "over the phone" and document-translation services. During the review, security identified that this service provider would handle sensitive customer information.

The service provider had operations in several countries with limited capabilities to conduct background investigations, and it used staff that worked out of their homes. The company did not have adequate information-protection training programs.

After considering such facts, the security manager was concerned. A company that cannot guarantee the integrity of its international staff due to lack of background screening and that does not have a documented information protection training program poses a significant risk from both internal and regulatory compliance perspectives.

The security manager knew that if this company were hired and later compromised the information of the organization's clients, both the ESP and company could be liable for violating federal rules about protecting personal data.

Teamwork

While the security department has a valuable contribution to make, it is only one member of the due diligence team. The team should be headed by a project manager who will coordinate the due diligence activities of everyone on the team. This manager will also be responsible for overseeing everything from project initiation to execution of the contract. Other team members may include the following:

Privacy officer. This person will assess the ESP from the regulatory compliance perspective. The corporate privacy expert will be an invaluable resource throughout the entire project and will explain to all internal participants the corporate approach to various privacy-related issues.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Security's Input on Outsourcing: Security Directors Can Help Their Companies Assess the Reliability of Third Parties before They Hire Them to Handle Vital Services
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.