What is the term for liability that arises when a partner or service provider fails to meet organizational security requirements?

The term that describes the liability that arises when a partner or service provider does not fulfill organizational security requirements is known as downstream liability. This concept refers to the obligations and potential repercussions that an organization may face due to the actions or inactions of those with whom they have a partnership or contractual relationship.

When an organization relies on third-party vendors, partners, or service providers, it entrusts them with sensitive data or critical infrastructure. If these entities fail to implement adequate security measures, resulting in a data breach or security incident, the primary organization can be held liable for the damages that ensue, thereby creating a downstream effect of liability. This concept emphasizes the importance of due diligence in vendor management and the necessity of ensuring that all third parties comply with established security protocols to mitigate potential risks.

The other options do not correctly capture the nature of this specific liability. Upstream responsibility generally refers to the accountability of the providers or partners themselves, while outsourcing risk describes the broader risk associated with delegating services to external entities. Partnership accountability is a more general term and does not specifically pertain to security compliance and the resulting liabilities.