A Win-Win for Security: Modernizing Vendor Risk Management

In the world of enterprise software, third-party risk management (TPRM) is a critical function. Yet, the traditional process has become a source of friction and inefficiency for everyone involved. We've all been on one side of the equation or the other: staring at row 247 of an endless Excel spreadsheet or spending days compiling answers. The shared feeling is often one of administrative burden and a sense that TPRM is a process ripe for modernization so that we can all focus on what truly matters: genuine, operational security.

At Elixir, meaningful security isn't just a theoretical discussion; it's a core part of our operational philosophy. It's time for a collaborative shift, where we can evolve beyond the limitations of questionnaires and embrace a new paradigm rooted in practical, operational security that is validated by rigorous, independent, third-party audits. This isn't about cutting corners. It's about working smarter. By doing so, we create a win-win scenario that saves time, reduces costs, and provides stronger security assurance for the entire ecosystem.

The Challenge with the Traditional Approach

The traditional TPRM process, built on bespoke questionnaires, creates challenges for both customers and vendors, even with the best intentions. While an individual customer may have a fantastic, streamlined survey, the lack of a universal standard presents several shared difficulties: 

1. It’s a Snapshot, Not a Story: A questionnaire captures a static point in time. It doesn't fully convey how a vendor’s security program breathes, adapts, and responds to threats day-in and day-out. Real security is a dynamic story of continuous improvement, proactive threat hunting, and a culture where incident response drills are treated with the same seriousness as a fire drill. A simple "yes" on a spreadsheet in response to a question like "Do you have an incident response plan?" doesn't reveal the expertise of the security team, the lessons learned from their last tabletop exercise, or the culture of vigilance they foster. It's akin to evaluating a five-star restaurant based on a photo of its menu instead of savoring the food, inspecting the kitchen's cleanliness, and observing the well-orchestrated team in action.
2. It’s Subjective: Ultimately, a questionnaire is self-attestation, which is inherently subjective. In contrast to security questionnaires completed by the vendor, independent security audits are objective. These audits are carried out by independent, certified, third-party assessors who are professionally trained to be skeptical. Their job is not just to ask a question, but to demand proof. They perform sample testing, review system configurations, inspect log files, and conduct live interviews with engineers and administrators to verify that controls are not just designed correctly but are operating effectively.
3. It’s Economically Unsustainable for Everyone: Vendors clearly face significant costs. They invest hundreds of thousands of dollars in formal audits, only to find themselves dedicating thousands of additional hours to respond to various questionnaires. Each hour that a senior security engineer spends meticulously answering a duplicative survey is an hour lost that could have been used to patch a critical vulnerability, enhance monitoring, or threat modeling a new feature. For customers, the cost may be less visible, but they are substantial. Your security, legal, and procurement teams invest precious time in creating, distributing, and then chasing down answers for these surveys. This results in an organizational bottleneck that hinders project progress and drains resources that could be better utilized on higher-value risk analysis. This cumulative administrative burden across the industry ultimately weakens our collective security posture.

The Power of Verified Trust: A Shared Solution

Rather than reinventing the wheel with every new partnership, why not take advantage of the robust, evidence-based work that has already been accomplished? Certifications such as SOC 2 Type 2 and HITRUST r2 serve a purpose beyond just benefiting the vendor. They are designed to offer clear, trustworthy, and comprehensive assurance to their customers. At Elixir, we fully embrace this philosophy, which is why we make significant investments in upholding our own SOC 2 Type 2 and HITRUST r2 certifications.

A SOC 2 Type 2 report offers a comprehensive overview of a company's systems and, crucially, attests to the operational effectiveness of their controls over a specified duration (typically 3-12 months) in accordance with the AICPA's Trust Services Criteria. This ensures that policies are actively implemented rather than merely existing on paper. You will find proof that data encryption is taking place, that access reviews are regularly performed, and that modifications are systematically managed through a formal process, all of which are continuously monitored, tested and evaluated by an independent third party.

The HITRUST r2 certification takes this to another level, harmonizing multiple standards like HIPAA, PCI, and NIST into a single, comprehensive framework.

For customers, this represents a significant boost in efficiency. It assures you that the vendor adheres to a stringent baseline that likely encompasses the regulatory requirements that impact your business.

When a vendor achieves a HITRUST r2 certification, they have validated their security against one of the most respected standards globally, providing a substantial advantage in your risk assessment process.

Evolving TPRM: A Win-Win for Customers and Vendors

This shift in approach creates a more efficient and secure process for everyone. We live what we preach; at Elixir, our own vendor due diligence process follows this exact methodology. We believe in building partnerships as a foundation of verified trust, not burdensome paperwork.

• For Customers: By starting with a request for a SOC 2 Report or HITRUST Certification, you gain a higher level of assurance in a fraction of the time. Your team’s role shifts from time-consuming data collection to strategic analysis of robust, verified evidence. This empowers your risk management professionals to move beyond mere checklist auditing and evolve into being true risk advisors. They can concentrate their skills on the residual risk specific to your use case, thereby speeding up procurement and onboarding cycles while leading to a more assured and substantial risk assessment.
• For Vendors: This strategy enables security teams to channel their efforts into what truly matters: safeguarding the platform and customer data. The time conserved from responding to repetitive questionnaires is reinvested directly into enhancing the security program. This results in improved service, upgraded features (such as new security controls you can use), and a more robust defense for all. Additionally, this efficiency helps lower operational costs, a benefit that ultimately extends to the customer.

The conversation can then transform from a monotonous interrogation to a meaningful discussion about security philosophy. This allows your team to pose more profound questions that delve into the essence of a security culture:

• Can you walk me through your vulnerability management process, from discovery and prioritization to remediation SLAs? How do you factor business context into your severity ratings?
• How do you practice DevSecOps and build security into the product from the first line of code? Are you using tools like Static Application Security Testing (SAST) in your CI/CD pipeline?
• When did you last run a tabletop incident response exercise, and what were the key lessons learned that led to concrete improvements in your plan?

This collaborative model also bolsters security for all stakeholders. Compelling a vendor to disclose detailed information about their controls through a questionnaire is akin to requesting the blueprints to their bank vault. This data, now housed within your own systems, introduces a new risk vector. A breach within your organization could unintentionally expose the entire security playbooks of your supply chain. Relying on independent audit reports, designed for safe sharing under NDA, is a far more secure and legally sound practice for everyone involved.

It's time for the TPRM process to transition into a genuine partnership. Elixir is dedicated to setting a precedent, and we are convinced that this contemporary approach leads to a quicker, more efficient, more effective and genuinely more secure ecosystem for everyone. Let us appreciate the substantial effort and investment that goes into attaining world-class, independent certifications and use that as our cornerstone for collaborative security.

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