Explanation
Integrating risk management into the vendor management process is the most effective way to ensure the security of services and solutions delivered by third-party vendors, as it enables the organization to identify, assess, treat, and monitor the risks associated with outsourcing. Risk management should be applied throughout the vendor life cycle, from selection, contracting, onboarding, monitoring, to termination. Risk management also helps the organization to define the security requirements, expectations, and responsibilities for the vendors, and to evaluate their performance and compliance. (From CISM Review Manual 15th Edition) References: CISM Review Manual 15th Edition, page 184, section 4.3.3.2; Preparing Your First Supplier Audit Plan1.