Which security activities should be performed for due diligence when outsourcing a customer relationship management system?

When outsourcing a customer relationship management (CRM) system, conducting compliance audits and risk assessments is essential for ensuring that the vendor adheres to necessary regulatory requirements and organizational standards. Compliance audits involve reviewing the vendor's policies, procedures, and controls to ensure they align with regulations such as GDPR, HIPAA, or other relevant industry standards. This helps mitigate legal risks associated with data handling and customer privacy.

Risk assessments, on the other hand, identify potential vulnerabilities in the third-party solution, evaluating various threats and the likelihood of compromise that could impact the organization’s data. By performing these activities, businesses can make informed decisions about the risk levels associated with outsourcing their CRM system and develop strategies to address any identified risks, thereby enhancing the overall security posture.

The other choices involve important security practices but are not as central to due diligence in the context of outsourcing as compliance audits and risk assessments. Access control verification and data encryption checks are crucial for internal security but might be more relevant once a vendor is engaged. Penetration testing and incident response planning are vital components of security management but are more focused on active defenses rather than initial due diligence. Employee background checks and training evaluations, while important for security culture and insider threat mitigation, do not directly relate to the due diligence