The primary objective of any financial institution is to protect Confidentiality, Integrity and Availability (CIA) of business data and provide effective services to their customers and maintain long term customer relationship.
In order to have sustained business with third party vendors, it is important to perform periodic risk assessment on the vendors to identify new risks in the evolving technology and social environment and mitigate the risks to the acceptable level. In many countries the local regulators made the vendor risk assessment is mandate for banking and financial institution. The vendor risk assessment must be a prerequisite before entering into a contract with vendor.
