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podcast

What Is a Vendor Confidentiality Agreement?

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Vendor confidentiality agreements are important to your third-party risk management strategy.

In this podcast, you'll learn what a vendor confidentiality agreement is, how to create and review an agreement and why it's important in a third-party risk management strategy.

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Podcast Transcript

Hi – this is Kara with Venminder.    
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In this 90-second podcast, we’ll define a confidentiality agreement and provide four best practices.

At Venminder, we have a team of certified paralegals who specialize in reviewing and managing vendor contracts.

Let’s begin with a simple definition. A confidentiality agreement is intended to protect the trade secrets and other confidential information between two or more parties, such as you and your vendor. And, it’s usually only recommended when sensitive or confidential information is exchanged.

Creating and reviewing a vendor confidentiality agreement is best done by an expert who understands the nuances of contract language. Here are a few tips to ensure the process goes smoothly:

First, use a standard template. This will provide you with a consistent process to obtain the basic information and reduce the possibility of needing to make multiple revisions.

Second, make sure to use specific confidentiality provisions that are particular to the relationship. For example, include details within the contract if your third-party will be using a subcontractor who has access to your information.

Third, clearly define how the confidential information will be stored, protected from unauthorized access and disposed of or returned when and if the contract ends.

Finally, understand and include the details of how a data breach will be disclosed and remediated including timing, the remediation plan and timeline and who is responsible for the cost of the breach.

A well-written vendor confidentiality agreement is an important component in a third-party risk management strategy. When your third-party vendors have access to confidential information, this type of agreement is vital to protecting it.

We hope you found this podcast insightful. Thanks for tuning in; catch you next time!   

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