Certified: The Security+ Prepcast

When it comes to cybersecurity, your risk does not end with your organization’s perimeter. It extends to every supplier, vendor, and third-party service you rely on. That is why supply chain analysis and vendor selection are essential parts of managing enterprise security. In this episode, we will walk through three key components of vendor risk governance: analyzing risks across the supply chain, conducting due diligence in vendor selection, and identifying conflicts of interest that can compromise security or trust.
Let’s begin with supply chain risk analysis. The supply chain includes every organization, service, or component involved in delivering your final product or service. That means software vendors, hardware suppliers, cloud service providers, logistics partners, and even subcontractors can affect your security posture. A vulnerability anywhere along that chain can create a risk for your organization.
Supply chain risk analysis is the process of identifying, evaluating, and mitigating risks that originate from or pass through your third-party relationships. These risks can take many forms—unpatched systems, poor access control, lack of encryption, geopolitical instability, insider threats, or insufficient monitoring. What makes supply chain risk challenging is that you do not always have full visibility or control over each link in the chain.
A common approach to supply chain risk analysis includes creating an inventory of all vendors and mapping how they interact with your systems, data, or operations. Once mapped, you assess each vendor’s security controls, certifications, history of incidents, financial stability, and location-based risks. You also consider the level of access they have to your environment. A vendor who manages a public-facing website poses different risks than one with access to your internal network or sensitive customer data.
Let’s look at a real-world example. A global manufacturer relied on a software supplier for critical firmware updates to its industrial control systems. During a routine audit, it discovered that the supplier had been acquired by a foreign company subject to different data privacy laws and export restrictions. This raised concerns about unauthorized data sharing and regulatory compliance. The manufacturer initiated a full risk analysis, brought in legal and compliance experts, and eventually negotiated new terms with the supplier, including stricter data handling clauses and additional oversight. Without a strong supply chain risk process, the issue could have gone unnoticed until a regulatory body came knocking.
Now let’s turn to due diligence in vendor selection. Due diligence is the process of thoroughly evaluating a vendor before entering into a business relationship. It ensures that the vendor’s practices, policies, and capabilities meet your organization’s standards and expectations. In cybersecurity terms, this means assessing how a potential vendor handles access control, encryption, data retention, incident response, and compliance.
A strong due diligence process begins with a structured questionnaire or assessment. This may ask about security policies, prior breaches, third-party audits, employee background checks, data residency, and legal protections. Depending on the risk level, you may also request documentation like penetration test summaries, System and Organization Control Two reports, or International Organization for Standardization twenty-seven thousand one certifications.
In addition to technical checks, due diligence involves assessing business health. This includes reviewing financial reports, ownership structure, litigation history, and customer references. If a vendor is unstable or facing legal trouble, those issues can spill over into your operations.
Let’s walk through a practical example. A healthcare provider was evaluating a cloud-based transcription service. As part of due diligence, it requested the vendor’s most recent audit reports, examined their breach notification policy, and validated compliance with the Health Insurance Portability and Accountability Act. The vendor passed most checks, but further investigation revealed a history of late customer support responses and an unresolved complaint from a former client about data mishandling. Rather than take the risk, the healthcare provider chose another vendor with stronger customer feedback and a clearer escalation process. Due diligence prevented a poor decision and reduced exposure to both operational and reputational harm.
Thorough due diligence also includes validating the vendor’s subcontractors. Sometimes, a vendor appears solid on the surface but outsources critical tasks to partners with weaker controls. A good due diligence process digs into those dependencies and clarifies who is really touching your data or infrastructure.
Now let’s talk about conflict of interest considerations. A conflict of interest arises when a vendor’s obligations or relationships may influence their ability to act in your best interest. These conflicts are not always illegal—but if they go undisclosed or unmanaged, they can damage trust, compromise data, and undermine governance.
Common conflicts include financial ties, shared ownership, or overlapping client portfolios. For example, a vendor who works for two direct competitors may be tempted to cut corners or share insights to win favor. A vendor whose leadership sits on your board may struggle to enforce security policies objectively. These relationships create gray areas that must be addressed early.
The first step in managing conflict of interest is identifying it. During vendor onboarding, you should ask vendors to disclose any existing relationships that could pose a conflict. This includes relationships with employees, other clients, or regulatory agencies. You should also perform internal reviews to ensure there are no hidden connections between vendor staff and your own leadership.
Next, you evaluate the risk. Not all conflicts are critical. Some can be managed with clear boundaries, oversight, and documentation. Others may require reassigning responsibilities, modifying contracts, or even selecting a different vendor. Transparency is key. If a conflict cannot be eliminated, it must be disclosed and monitored closely.
Let’s consider a case study. A mid-sized bank hired a consulting firm to perform a security assessment. During onboarding, the bank discovered that the consulting firm’s lead analyst previously worked for a competitor and still maintained personal relationships with some of their staff. The bank flagged this as a potential conflict. Rather than cancel the contract, the bank asked for a different analyst, reviewed the firm’s internal policies, and added a clause requiring that no sensitive materials be shared across client teams. The situation was handled professionally, and the project was completed with no issues. But without early identification and honest discussion, that same relationship could have created unnecessary doubt and risk.
In regulated industries, conflicts of interest may require formal disclosure to governing bodies. In finance, healthcare, and government sectors, unmanaged conflicts can result in penalties, audits, or loss of certification. That is why conflict management must be treated as a core part of vendor risk—not a separate concern.
As you prepare for the Security Plus exam, be ready to identify the differences between supply chain analysis, due diligence, and conflict of interest management. Scenario-based questions may ask how to evaluate a vendor’s risk or how to respond to a newly discovered dependency. Think about who is involved, what access they have, and what oversight mechanisms are in place.
Here is a study tip. If a question describes mapping vendors or assessing operational dependencies, it’s about supply chain risk. If it asks how to evaluate a vendor before signing a contract, it’s about due diligence. And if it mentions overlapping interests, employee ties, or objectivity concerns, it’s about conflict of interest. Each concept has its own indicators—know what to watch for.
To help you practice, visit us at Bare Metal Cyber dot com, where you can download supply chain risk checklists, vendor vetting questionnaires, and conflict of interest disclosure templates. And for the most trusted Security Plus study resource—with domain-by-domain coverage and exam-quality questions—head to Cyber Author dot me and get your copy of Achieve CompTIA Security Plus S Y Zero Dash Seven Zero One Exam Success.