External continuous monitoring solutions are tools or services that provide objective and timely data on the cybersecurity posture and performance of third-party vendors. They typically include components such as:
* Status updates on localized events based on geolocation, which can alert the organization to potential disruptions or incidents affecting the vendor's operations or infrastructure in a specific region or country12.
* Alerts on legal and regulatory actions involving the vendor, which can indicate the vendor's compliance status, reputation, or liability exposure13.
* Reports that identify changes in vendor financial viability, which can signal the vendor's ability to
* sustain its business operations, invest in security, or honor its contractual obligations14.
However, metrics that track SLAs for performance management are not typically included in external continuous monitoring solutions, as they are more relevant for internal monitoring and reporting. SLAs are service level agreements that define the expected quality, availability, and reliability of the vendor's services or products, as well as the penalties or remedies for non-compliance. SLAs are usually measured and reported by the vendor itself, or by a third-party auditor or assessor, based on the specific criteria and frequency agreed upon by the parties . Therefore, option C is the correct answer. References:
* Third Party Risk Management Framework, Module 5: Program Implementation, Section 5.2: Ongoing Monitoring, p. 32
* Bitsight Continuous Monitoring, Section: Uncover hidden risks
* Best-Practices Guidance for Third-Party Risk, Section: Monitor Third-Party Compliance with Regulations and Standards, p. 3
* Five Best Practices to Manage and Control Third-Party Risk, Section: Monitor Third-Party Financial Health, p. 4
* [Third Party Risk Management Framework], Module 4: Program Components, Section 4.3: Contracting, p. 24
* [A Better Way to Manage Third-Party Risk], Section: Establish clear service level agreements (SLAs) and key performance indicators (KPIs), p. 2