Which of the following is considered a best practice when working with third-parties?

Using an authentication policy to control access is considered a best practice when working with third parties because it helps ensure that sensitive data and systems are protected from unauthorized access. An authentication policy establishes the protocols through which third-party vendors or partners can gain access to your systems. By clearly defining who has access, under what conditions, and the methods used to verify identity, organizations can maintain a higher level of security.

This practice not only helps in protecting proprietary and confidential information but also aids in compliance with regulatory requirements that mandate strict access controls. Implementing strong authentication measures can include multi-factor authentication, role-based access controls, and regular audits of access logs. This contributes significantly to reducing vulnerabilities that could be exploited by third-party entities.

While options such as utilizing a standard reporting tool, setting up an internal review process, and regularly updating integration software may also contribute to overall operational efficiency and security, they do not specifically focus on controlling access, which is crucial in third-party interactions where sensitive data may be at risk. Therefore, the emphasis on an authentication policy directly addresses the need for security in these collaborative environments.