Which process involves evaluating third-party service providers with access to sensitive data?

The process that involves evaluating third-party service providers with access to sensitive data is Service Provider Management. This practice is essential for organizations that utilize external vendors or partners to handle sensitive information, as it establishes the framework for assessing the security measures and controls these providers implement.

Service Provider Management encompasses due diligence measures such as risk assessments, audits, and ongoing monitoring of the third-party's security posture. The aim is to ensure that the external entities follow appropriate security protocols to protect sensitive data against breaches, unauthorized access, or other vulnerabilities. This is particularly crucial given that the actions or failures of a third-party provider can significantly impact an organization's own security environment and compliance with regulatory requirements.

In contrast, Penetration Testing is focused on identifying and mitigating vulnerabilities within an organization's own systems through controlled simulated attacks. Network Monitoring and Defense involves ongoing oversight of networks to detect and respond to security incidents in real-time, while Application Software Security pertains to embedding security measures within software development processes to protect applications from threats. Each of these areas serves distinct purposes within the overall security framework but does not directly address the evaluation of third-party service providers.