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Taking advantage of opportunities to outsource services and functions to third party providers can create legal, compliance, due diligence and audit oversight challenges in an environment where privacy laws can vary by jurisdiction and be interpreted unpredictably. Even the most conscientious company can make a false step as it captures, uses, transfers, and discloses personal information with third party service providers.
The extent of privacy laws, regulations and related compliance, security, control and breach reporting responsibilities can be daunting for any company. These challenges are further compounded when a company uses third party service providers. Because it is often impractical and not cost effective to perform their own onsite due diligence and oversight auditing, companies frequently seek assurance reporting from their third party service providers about their controls and privacy compliance as part of their due diligence and oversight.
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