FIDP-10
Standard
Weight: 5

Internal vs Third-Party Security Monitoring

Plain English Explanation

This question asks who is responsible for watching your systems for cyber attacks - your own team or an outside security company. It's like asking whether you have your own security guards or hire a professional security firm. Enterprise customers want to understand your security monitoring model to assess whether you have the right expertise and resources protecting their data.

Business Impact

Your monitoring approach directly impacts customer trust and compliance requirements. Internal monitoring shows control but requires significant investment in tools and expertise that many SMBs can't afford. Third-party monitoring through a reputable managed security service provider (MSSP) often provides better coverage at lower cost and demonstrates you're leveraging specialized expertise. Either approach can win deals, but you must clearly articulate your model's strengths and have proper vendor management if outsourced.

Common Pitfalls

Companies often try to claim internal monitoring when they only have basic alerting tools without dedicated security staff, which quickly falls apart under scrutiny. Another mistake is using an unvetted or budget third-party provider without proper SLAs, certifications, or incident response procedures, which can actually increase risk rather than reduce it.

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Question Information

Category
Financial and Insurance
Question ID
FIDP-10
Version
4.1.0
Importance
Standard
Weight
5/10

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