This is How I Respond to Customer's Right-to-Audit Clauses
Hello!
In this week's edition, we're diving into a topic that's as tricky as it is critical: handling customers' requests for the right to audit. Picture this: a clause in a contract that goes something like,
“The Customer and/or its authorized reps have the right to audit your information, systems, and internal controls…”
Sounds familiar, right? Well, it's becoming more common, and as CISOs and cyber leaders, we've got to have a game plan.
Now, my usual stance with my legal team on this is pretty straightforward. I say, "Look, we're all for complying with annual requests for security documentation like pentest and audit reports. But letting customers or regulators or their auditors just waltz in for arbitrary audits? That's a no-go unless there's a real, validated security concern."
This response of mine always does the trick, and customers haven't had any issues with it yet. On top of that, I make sure to work closely with my team and our legal folks, sticking to the best practices we've got.
Here's the way we tackle these situations:
Define the Audit Scope - Be clear about what they can check. You're open to transparency but not at the cost of security.
Set Scheduled Audits - Instead of on-the-fly audits, plan them. This keeps you prepared and in control.
Use Neutral Auditors - If an audit is necessary, suggest reputable third-party auditors. It keeps things impartial.
Keep Documentation Ready - Always have your security reports and compliance documents at hand. It shows you're not just compliant, but also organized and proactive.
Negotiate Terms - If a request seems overboard, don't shy away from negotiating. Find that sweet spot where both sides are comfortable.
Educate and Assure - Use these interactions as chances to educate customers about your security practices. It's about building trust and confidence.
So, there you have it, folks! Handling right-to-audit requests is all about balancing transparency with maintaining control. It's a delicate dance, but hey, that's what makes being a CISO so exciting, right?
Until next time, stay secure and savvy!
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Cheers!
Sivanathan