Regulatory Compliance
NYDFS Mandates Third-Party Security for Non-Public Information
Stay Ahead of Compliance and Risk
NYDFS requires financial entities to protect sensitive data across their entire supply chain. SecurityScorecard automates continuous monitoring, replacing manual questionnaires with proactive, audit-ready oversight to ensure absolute regulatory confidence.
Discover and Classify Third-Party Risk Across Your Ecosystem
- Detect every vendor automatically, including hidden fourth-party and nth-party relationships that traditional discovery methods miss
- Classify suppliers by risk level based on their access to nonpublic information and regulatory criticality, focusing compliance efforts on your highest-risk relationships
Meet NYDFS Third-Party Risk Management Requirements
- Protect nonpublic information across all third-party relationships with continuous monitoring and documented vendor management policies
- Conduct thorough due diligence on every third-party service provider in your ecosystem
- Maintain board-level accountability through streamlined annual certification workflows
Gain Unprecedented Visibility into Third-Party Risk
- Monitor third-party security postures 24/7 to identify emerging risks before they become compliance violations
- Receive real-time alerts on score drops, new vulnerabilities, CVEs, breaches, and security incident
- Document risk automatically with generated risk assessments and actionable mitigation plans
Accelerate Incident Response and Executive Reporting
- Detect third-party breaches and threats across your extended ecosystem, including vulnerabilities and exposed assets, enabling rapid response before incidents escalate
- Generate compliance-ready reports that support senior management oversight and annual certifications
- Maintain complete audit trails for NYDFS examinations with automated documentation of ongoing compliance effort
Frequently Asked Questions (FAQs)
Get comprehensive Regulatory Compliance supportWho must comply with NYDFS Part 500?
Any organization operating under a NY banking, insurance, or financial services license is a “Covered Entity.” This includes state-chartered banks, mortgage brokers, and insurance providers that handle non-public customer information.
What are the third-party security requirements under NYDFS?
Under Section 500.11 of NYDFS, you must maintain written policies for vendor management, perform due diligence, and mandate specific controls – like multi-factor authentication (MFA) and encryption—via contracts for any vendor with access to your data.
When is the annual NYDFS compliance deadline?
You must file a certification of material compliance through the DFS portal by April 15th each year to comply with NYDFS. This filing covers the previous calendar year and must be signed by both the CEO and CISO.
What are the penalties for non-compliance?
Violations can result in fines starting at $2,500 per day. Recent enforcement actions for inadequate third-party oversight and MFA failures have exceeded $2 million, in addition to mandatory independent audits.
How does SecurityScorecard help with the NYDFS Continuous Monitoring requirement?
NYDFS requires ongoing oversight, which traditional annual questionnaires can’t provide. SecurityScorecard delivers 24/7 security ratings and instant alerts for score drops or new vulnerabilities, ensuring you detect vendor risks the moment they emerge, not months later during an audit.
