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Aggrement Type Example: Pentesting

Vendor agreements for penetration testing follow a structured framework that includes a Master Service Agreement, Statements of Work, and supporting documents like NDAs to govern each engagement. Understanding how these agreements work together ensures that scope, access, costs, and rules of engagement are clearly defined before testing begins.

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About this video

Organizations that hire penetration testing firms to assess their networks and infrastructure must manage the relationship through a carefully structured set of vendor agreements. The sensitivity of penetration testing, which involves a third party probing live systems for vulnerabilities, makes it especially important to select a capable vendor and to document every aspect of the arrangement before work begins. Relevant factors in shaping those requirements include corporate policy, physical security testing needs, facility considerations, and any applicable compliance obligations. The foundational document in this relationship is the Master Service Agreement, which sets the terms for how the two organizations will do business together. It typically incorporates a non-disclosure agreement along with payment terms, dispute resolution procedures, and other general contracting provisions. The MSA is signed once and remains in effect for the duration of the relationship, providing a governing framework that does not need to be renegotiated for each new engagement. For every individual engagement, a Statement of Work is created to define the specifics. This document outlines the scope of work, associated costs, roles and responsibilities, and the rules of engagement. Key decisions captured in the Statement of Work include whether the organization will provide an asset inventory or have the vendor compile one, what level of system access will be granted, and whether the testing approach will be invasive or non-invasive. Invasive testing subjects live or production environments to aggressive attack simulations, which can affect operations, so the chosen method must align with business risk tolerance. Many engagements also include a rescan phase, where the vendor retests systems after identified vulnerabilities have been remediated. Once an engagement is complete, the Statement of Work is closed out, and a new one is issued for any subsequent work under the existing MSA.

What you'll learn

What's covered

Vendor Agreements & Pen Testing

Aligned to

NIST CSF
GV.SC-05 Requirements to address cybersecurity risks in supply chains are established, prioritized, and integrated into contracts and other types of agreements with suppliers and other relevant third parties.
CompTIA Security+
5.3 Explain the processes associated with third-party risk assessment and management.
5.5 Explain types and purposes of audits and assessments.
ISC2 CISSP
1.11 Apply Supply Chain Risk Management (SCRM) concepts
6.1 Design and validate assessment, test, and audit strategies
NIST 800-53
SA-4 Acquisition Process
CA-8 Penetration Testing
EC-Council CEH
1.1 Introduction to Ethical Hacking

Key terms

Master Service Agreement
MSA
An umbrella contract established between a service provider and a customer that governs the overall business relationship and under which future work or services are conducted.
Statement of Work
SOW
A document tied to a master service agreement that defines the specific tasks, deliverables, timeline, and costs for a particular project or engagement.
Penetration Testing
An authorized simulated attack on a system to identify and evaluate security vulnerabilities.
Rules of Engagement
Contract terms that define the boundaries, schedule, and procedures governing an activity such as penetration testing.
Vulnerability
A weakness in a system, application, or process that can be exploited by a threat actor.
Non-disclosure Agreement
NDA
A Non-disclosure Agreement is a legally binding contract that prohibits parties from sharing confidential information obtained during a business relationship, commonly required before sharing sensitive security findings or proprietary data.

Topics

Penetration Testing Vendor Agreements Statement Of Work Master Service Agreement Rules Of Engagement Cybersecurity Compliance

Transcript

Depending on what kind of relationship we have with a vendor, we may fill out different agreements or require different agreements. So what do those look like? Let's go over an example of a pentester and what agreements we may want to have when it comes to pen testing and working with us.

Choosing the Vendor

Just a reminder that pen testing is short for penetration testing, so this is hiring a company to come in and test out our network and our devices to see if there's vulnerabilities somewhere on our network. Because of the sensitivity of what this company is doing, we're going to really want to make sure that we're choosing the right company, one that can handle our network and our infrastructure securely.

Negotiation and Requirements

Then we're going to go into the negotiation and contract phase, where we're going to start setting up an agreement with this vendor. Because of the sensitivity in nature, we're really going to want to make sure we nail down the requirements. Some considerations that will go into our requirements are going to be: what are our corporate policies, what are the facilities like, is there going to be some sort of physical security testing, is there some sort of compliance that we need to comply with. We're going to nail down those details and other details, but not all necessarily in this MSA.

The Master Service Agreement

The MSA, the master service agreement, is just going to have this overall how we're going to do business together. In this case right here we're going to probably have a non-disclosure agreement as part of the MSA, so the non-disclosure agreement will probably be worked into the master service agreement. We'll also probably have something like payment terms that are incorporated into that: how are we going to pay and what is the time frame in which we need to pay. And if there's any legal disputes, that goes into the MSA. This is just some of that general contracting terminology, and it all fits into the MSA.

We're just going to sign the MSA once with this company, and then that will be the governing policies from there on. It's not typical that we would sign an MSA for every single agreement or contract that we work on with this particular company. We would just sign one and it would be good from here until we need to do an update to the MSA.

The Statement of Work

Then what we have is we engage them. We have an engagement for whatever it is that we want them to do, and an engagement is just an arrangement to do something. So every time we want them to do something, then we would create what's called a statement of work.

You can think of it as the MSA being the overall contract of how we're going to work together, and then the SOWs are going to be set up for each of the engagements. Maybe this is going to happen on a yearly basis, or a quarterly basis, or just on an ad hoc basis. Whatever it is, we'll generate an SOW.

For each engagement, the statement of work really outlines what we expect them to do and what they expect of us. So it's really the scope of work, what the costs are going to be for this particular engagement, what the roles and responsibilities are going to be, and if there's any rules of engagement.

What are the assets? Are we going to hand over an asset inventory, or are they going to do an asset inventory as part of their pen testing? We're going to decide whether it's going to be invasive or non-invasive. We're going to get into the permissions and access: do we hand over access to them so they have access to the system, are they going to try to gain access into the system, or are they going to try to gain access into it and then use credentials that we give them to gain access? So we're going to hash out those details. And then a lot of times pen testing will have some sort of rescan for corrections, so we'll correct the issue and then they'll go in and do a rescan on whatever vulnerabilities that they found.

Invasive Versus Non-Invasive

Invasive just means if they are going to really attack the system and really hit it hard. Because this could be a live environment, a production environment, if they're doing an invasive method of attacking this and trying to find those vulnerabilities, then that could be problematic to our customers. So maybe we want a non-invasive engagement this time, or maybe we want it to really fully test it out, in which case we're going to have them be very invasive into our system.

Those are the type of details that we really need to work out with this pen testing, and then it would all go into this statement of work.

Carrying Out and Closing the Engagement

Once we've signed the master service agreement and the statement of work, and anything else that we want to sign before we get this all kicked off, then we go into the actual engagement, where we're going to carry out the functions and they're going to do the pen testing. And then we close out the contract. The idea of a statement of work is that at some point in time we close out that statement of work.

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