Do you have contractual agreements with third parties that require them to maintain standards and to comply with all regulatory requirements?

This question is asking whether your organization has formal contractual agreements with third-party vendors or service providers that explicitly require them to maintain security standards and comply with relevant regulatory requirements when handling personal data on your behalf. Why it matters: When your organization shares data with third parties (like cloud providers, SaaS vendors, contractors, etc.), you remain responsible for how that data is protected. This is often called 'vendor risk management' or 'supply chain security.' Without proper contractual obligations, third parties might not handle data with the same care your organization would, potentially leading to data breaches, compliance violations, and reputational damage. Regulatory frameworks like GDPR, HIPAA, CCPA, and others specifically require organizations to ensure their third-party processors handle data appropriately. These contractual agreements serve as your legal protection and enforcement mechanism. How to best answer: Be specific about your third-party management program. Mention whether you have standard contract language or addendums for security and privacy requirements. Describe your vendor assessment process, how you incorporate regulatory requirements into contracts, and any ongoing monitoring you perform. If you use Data Processing Agreements (DPAs) or Business Associate Agreements (BAAs), mention those specifically. If you have different approaches for different types of vendors based on risk, explain that methodology.