IT Audit | Third-Party Risk | Operational Resilience
ICT Outsourcing & Third-Party Risk Audit
Independent assessment of cybersecurity, information security, operational and regulatory risks associated with external technology providers, covering outsourcing governance, contracts, cloud infrastructure, service continuity and supplier security controls.
Why ICT Outsourcing Risk Audits Matter
External technology services can create critical dependencies. Outsourcing delivery does not transfer responsibility for managing the associated risk. We distinguish control design from evidence that controls operate in practice.
- Supplier concentration and shared failure points
- Unauthorized access, data exposure and cross-border transfers
- Security incidents, late notification and service disruption
- Weak contracts, insufficient monitoring and difficult exits
Who Is This Service For?
The audit is for organizations whose operations depend on external ICT providers. Regulatory duties vary by sector, legal status and the criticality of the arrangement.
- Banks, microbanks, FinTech and payment service providers
- Insurance, energy, utilities and telecommunications
- Healthcare, government and critical infrastructure
- Organizations relying heavily on cloud and managed ICT services
Twelve ICT Outsourcing Audit Domains
We select suppliers and tests on a risk basis, prioritizing critical services. Each finding links the criterion, evidence, risk and recommended action. Technical testing requires separate scope and access approval.
- 01
ICT outsourcing governance
Strategy, board oversight, ownership, approval, risk appetite and reporting.
- 02
Third-party risk assessment
Criticality, materiality, inherent and residual risk, reassessment and escalation.
- 03
Supplier due diligence
Financial standing, security assurance, jurisdiction, ownership and subcontractors.
- 04
Contractual security and audit rights
Data ownership, confidentiality, SLAs, access rights, notification and exit clauses.
- 05
Cloud security and shared responsibility
IaaS/PaaS/SaaS roles, configuration, encryption, logging, residency and recovery.
- 06
Identity and privileged access
Supplier accounts, MFA, approvals, remote access, reviews and revocation.
- 07
Data protection and privacy
Classification, processing terms, transfers, retention, minimization and deletion.
- 08
Monitoring and incident response
Detection, notification, escalation, joint response and lessons learned.
- 09
Continuity and disaster recovery
RTO/RPO, backups, restoration, redundancy, exercises and coordination.
- 10
Fourth-party and concentration risk
Subcontractors, shared providers, geographic exposure and common failure points.
- 11
Supplier performance and SLAs
Availability, incidents, security indicators, reviews and repeated failures.
- 12
Exit and vendor transition
Portability, replacement, data return or deletion, knowledge transfer and continuity.
Our Audit Approach
- 01
Planning and scope
Identify critical suppliers, systems, contracts and applicable criteria.
- 02
Risk classification
Map dependencies, materiality and inherent risk.
- 03
Evidence review
Examine contracts, assessments, assurance reports and technical records.
- 04
Control testing
Interview owners and test agreed governance, security and recovery controls.
- 05
Findings and risk
Distinguish design gaps from operating failures and assess residual risk.
- 06
Reporting
Deliver an independent report with evidence and prioritized recommendations.
Evidence We Review
The precise evidence request depends on the agreed suppliers, services and audit criteria.
- Supplier registers, classifications and risk assessments
- Due diligence, contracts, SLAs and assurance reports
- Cloud architecture, access records and security monitoring
- Incident, continuity, recovery and supplier performance records
- Subcontractor inventories, exit plans and committee reports
Audit Deliverables
Final deliverables depend on the agreed engagement scope and available evidence.
- 01
Independent audit report
Scope, criteria, evidence, findings and conclusions.
- 02
Supplier risk matrix
Criticality and relevant inherent and residual risks.
- 03
Regulatory and control matrix
Mapping against requirements that apply to the organization.
- 04
Security findings register
Control weaknesses, evidence and impact.
- 05
Dependency assessment
Critical providers, fourth parties and concentration.
- 06
Corrective action plan
Prioritized, risk-based recommendations.
- 07
Executive summary
Key risks and management decisions.
- 08
Optional follow-up
Separate verification of remediation evidence.
Why IO Consulting?
We combine structured, evidence-based procedures with financial-sector technology risk, cybersecurity and operational resilience perspectives. Our reports separate audit conclusions from management actions; we do not claim regulatory endorsement.
- Independent conclusions and traceable evidence
- Technical control assessment beyond questionnaires
- Supplier continuity and recovery perspective
- Clear recommendations for management and audit committees
Business Value
An independent view helps management prioritize decisions; it cannot guarantee compliance, eliminate risk or secure supervisory approval.
- Understand critical supplier and cloud dependencies
- Strengthen contractual rights and access controls
- Improve incident coordination, continuity and exit readiness
- Prioritize remediation and support regulatory readiness
Regulatory and Framework Context
Applicable Georgian obligations must be identified for the specific entity and arrangement. NBG cloud outsourcing and operational risk requirements may be relevant to supervised financial organizations. ISO/IEC 27001:2022, ISO/IEC 27036, ISO 22301, NIST CSF 2.0 and COBIT 2019 are assessment references, not automatic legal duties. EBA guidance and EU DORA are considered only when the entity and activity fall within their scope.
- NBG Order №195/04 on cloud outsourcing
- NIST CSF 2.0 supply-chain risk guidance
- EBA outsourcing guidance, where applicable
- EU DORA, where applicable
Frequently Asked Questions
What is ICT outsourcing risk?
It is the exposure created when external providers support technology, data or critical services. The organization retains responsibility for managing its own risk.
How does due diligence differ from an audit?
Due diligence informs selection and onboarding. An independent audit evaluates agreed criteria, control design and operating evidence across the relationship.
Which suppliers are included?
Scope is risk-based. Critical suppliers receive priority; other providers are included where their data access, concentration or service dependencies warrant review.
Are cloud providers covered?
Yes, where in scope. We assess shared responsibilities, configuration, data handling, assurance, continuity and exit arrangements.
Which contract terms matter?
Relevant terms include security duties, audit and regulatory access, incident notice, subcontracting, SLAs, data return or deletion and termination.
What is fourth-party risk?
It arises from a supplier’s own subcontractors or dependencies, including shared cloud platforms that can affect your service.
How is concentration risk assessed?
We map common providers, locations, technology and failure points, then assess the impact of a shared disruption and available alternatives.
How are continuity and recovery evaluated?
We review supplier plans, RTO/RPO, backup and restoration evidence, exercises and coordination with the organization’s own response plans.
Must every Georgian bank obtain a separate annual external outsourcing audit?
No blanket requirement should be assumed. Applicable NBG obligations and the need for independent assessment must be checked against the specific institution, arrangement and current rules.
What does the report contain?
The agreed report sets out scope, criteria, evidence, findings, risk impact and prioritized recommendations, with an executive summary.
Can the audit cover only critical suppliers?
Yes. A focused engagement can cover selected critical suppliers, provided boundaries and exclusions are documented.
Can IO Consulting verify remediation?
An optional, separately scoped follow-up can verify corrective-action evidence while preserving engagement-level independence.
Strengthen Your ICT Outsourcing and Third-Party Risk Management
IO Consulting provides independent assessments of ICT outsourcing arrangements, supplier security controls, critical dependencies and operational resilience, with practical recommendations for risk reduction.
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