What is the Trusted Information Security Assessment Exchange (TISAX)?

As cars become smarter, they also generate, collect, and process vast amounts of data— up to 383 gigabytes an hour, based on some recent estimates — ranging from driver behavior and location to vehicle diagnostics and even personal information. 

This data, while crucial for enhancing user experience and vehicle performance, also introduces significant risks if not properly secured. This is where the Trusted Information Security Assessment Exchange (TISAX) framework comes into play. 

Designed specifically for the automotive sector, TISAX provides a standardized approach to ensuring that organizations within the automotive supply chain meet stringent information security requirements. Below, we’ll delve into the purpose and importance of TISAX, exploring how it helps original equipment manufacturers (OEMs), suppliers, and service providers protect the integrity of their data.

What is the Trusted Information Security Assessment Exchange (TISAX)?

Established in 2017 by the German Association of the Automotive Industry (the Verband der Automobilindustrie, or VDA for short), TISAX is a globally recognized information security assessment (ISA) for the automotive industry. 

Before TISAX, suppliers and service providers within the automotive sector were being asked to demonstrate their ability to safeguard sensitive data. But each automotive manufacturer had their own unique assessments, making the process repetitive and inefficient. Plus, while traditional information security standards like ISO/IEC 27001 were useful, they didn’t fully address the unique challenges faced by the automotive sector.

TISAX was developed to fill this gap, streamlining the assessment process and providing a framework that ensures all participants in the automotive supply chain adhere to consistent, industry-specific information security requirements. Businesses can share their assessment results with partners and suppliers via the TISAX Exchange, or ENX Association. 

By creating TISAX, the VDA established a trusted environment where companies can securely exchange sensitive information, reduce security risks, and demonstrate compliance with both industry standards and regulatory requirements. This not only enhances data protection but also fosters greater trust and collaboration among automotive companies and their partners.

Who needs to comply with TISAX?

While TISAX is not a legal requirement, compliance with TISAX is typically necessary for any company that is part of the European automotive industry supply chain and handles sensitive information. The requirement to comply usually comes from the larger manufacturers or Tier 1 suppliers who want to ensure that their entire supply chain meets specific information security standards. This typically includes:

1. Automotive manufacturers: Companies that design, produce, or assemble vehicles often require their suppliers to comply with TISAX to ensure the security of sensitive information, such as vehicle designs, prototypes, and customer data.
2. Suppliers and sub-suppliers: This includes companies that provide parts, components, software, or services to OEMs. If these suppliers handle sensitive information—such as technical specifications, production details, or personal data—they may be required to comply with TISAX by their clients.
3. Service providers: Companies offering services such as IT support, data processing, engineering consulting, or any other service that involves accessing or handling sensitive automotive information might also need to comply with TISAX.
4. Research and development organizations: R&D firms working on automotive projects, especially those involving new technologies or prototypes, often need to meet TISAX requirements to protect the confidentiality and integrity of their work.
5. Logistics and transportation companies: If they handle the transport of sensitive goods, such as vehicle prototypes or critical components, they may also be required to comply with TISAX.

In essence, any organization that works with a European automotive company and deals with sensitive information could be asked to comply with TISAX, even if they are based outside of Europe. For example, US-based companies working with European automotive firms might need to comply with TISAX, even if they follow other standards domestically.

The business benefits of achieving a TISAX label

Achieving TISAX compliance isn’t just about ticking a box; it’s about gaining real business benefits that can set your organization apart in a competitive market. Let’s dive into how TISAX can not only secure your data but also boost your reputation, build stronger partnerships, and open doors to new opportunities.

1. Recognition as a secure supplier

Major automotive manufacturers and Tier 1 suppliers are increasingly requiring their partners meet TISAX standards. By being TISAX-compliant, you’re positioning your company as a preferred supplier in a market where security is a top priority. This can lead to faster business growth, stronger partnerships, and a better reputation in the industry.

2. Improved security and data protection

By going through the TISAX process, you’re not just ticking boxes; you’re actively improving your company’s security posture. This means fewer vulnerabilities, a lowered risk of data breaches, and more peace of mind for your organization, partners, and customers. Plus, a strong security framework isn’t just good for protecting data; it can also boost efficiency by streamlining how you manage information and processes across your organization.

3. Increased trust and transparency

A TISAX label tells clients and partners that they can trust you with their most sensitive information in a verifiable, transparent way. Once you’ve completed a TISAX assessment, you can choose to selectively share the results with partners and other companies. This enhanced transparency helps foster stronger, more secure business relationships. In a competitive space like the automotive industry, that trust can be a deciding factor in whether you land an important contract or not.

Understanding TISAX assessment levels

TISAX takes a comprehensive, risk-based approach to evaluating and verifying the entire vehicle ecosystem, including hardware, software, and communication protocols. The framework uses a maturity model with three assessment levels with varying information security requirements, depending on the sensitivity of the data and the role the organization plays within the automotive supply chain.

Let’s take a closer look at each assessment level and its requirements.

TISAX Assessment Level 1 (AL1)

Level 1 is for organizations that deal with non-sensitive data or only need to demonstrate a basic level of information security. However, AL1 is rarely requested by partners since it involves a self-assessment rather than an external audit. 

For TISAX Level 1, organizations must ensure that foundational security controls are in place to protect non-sensitive data. These include access controls, data protection policies, and incident response plans. AL1 compliance involves a self-assessment where your organization evaluates its own information security practices. Many organizations use a checklist or self-assessment template provided by TISAX or developed internally to ensure that all required areas are covered. All self-assessment findings, documentation, and any improvement actions are compiled into a final self-assessment report.

Since there is no external audit or formal validation process at this level, organizations that complete an AL1 self-assessment do not receive a TISAX label. The final self-assessment report can be shared with clients and partners upon request.

TISAX Assessment Level 2 (AL2)

If your company handles moderately sensitive information, such as non-critical project details or limited personal data, and your business partners require some level of external verification, AL2 might be appropriate. AL2 involves a more detailed assessment with a focus on moderate-risk information. It includes a combination of self-assessment and partial verification by an external auditor. 

For AL2, organizations must implement more robust security measures, including risk management processes, regular security assessments, and stronger data protection controls. They must also develop and maintain a more comprehensive incident management system, ensuring that incidents are promptly identified, reported, and addressed. 

Similar to AL1, you begin with a self-assessment, where you evaluate your organization’s current security practices against the TISAX AL2 requirements. You will then need to choose an accredited TISAX audit provider who will conduct the verification. The audit provider will review your self-assessment, examine your documentation, and verify that the necessary controls and processes are in place.

If the audit identifies any deficiencies, you’ll need to address these issues. This might involve further enhancements to your security controls or additional documentation. Once all requirements are met, the audit provider will issue a final report, confirming that your organization complies with the AL2 requirements and you will receive a TISAX label. 

TISAX Assessment Level 3 (AL3)

If your company deals with highly sensitive information, such as vehicle prototypes, critical systems data, or large amounts of personal data, TISAX Level 3 is likely required. This level provides the highest assurance to business partners and is often mandated by major automotive manufacturers. AL3 requires a full on-site audit by a certified TISAX audit provider. 

To be compliant with Level 3, organizations must have implemented a fully mature information security management system (ISMS) with advanced security measures, including continuous monitoring, detailed risk assessments, encryption, and data loss prevention strategies. They must also establish formal processes for incident response, business continuity, and continuous improvement. This includes regular internal audits, ongoing security awareness training, and updates to the ISMS to address new threats and vulnerabilities.

AL3 requires a full on-site audit conducted by an accredited TISAX audit provider. This thorough assessment covers all aspects of the organization’s information security system. If your organization successfully meets all the TISAX requirements at AL3, you will receive a TISAX label which serves as formal recognition that your organization has undergone rigorous external verification and complies with the highest level of information security standards within the TISAX framework.

To determine which assessment level applies to your organization, consider the following factors: 

1. What type of information does your organization handle?

• Do you deal with non-sensitive, routine data such as basic project details and general communications? 
• Do you handle moderately sensitive information, such as internal project specifics and limited personal data?
• Are you responsible for highly sensitive or critical information, such as vehicle prototypes, proprietary designs, and large amounts of personal data?

2. What would be the impact of a data breach?

• If the information you handle were compromised, would it have minimal impact?
• Could a data breach cause moderate damage, such as financial loss or reputational harm?
• Would a data breach lead to significant consequences, such as regulatory penalties, major financial loss, or severe damage to client relationships?

3. What are your clients' and partners' expectations?

• Have your clients or partners specified a particular level of TISAX compliance?
• Are they content with basic assurances, or do they require more stringent security measures?
• Do they mandate the highest level of security, with full external validation and robust controls?

4. What is your role in the automotive supply chain?

• Are you a small supplier with minimal access to sensitive data?
• Do you play a mid-level role, managing moderately sensitive information and interacting with various partners?
• Are you a key player, such as a Tier 1 supplier or manufacturer, directly involved in the development and handling of highly sensitive data?

5. What is the current maturity of your information security management system (ISMS)?

• Is your ISMS in its early stages, with basic controls and processes in place?
• Do you have a well-developed ISMS that includes risk management and regular assessments?
• Is your ISMS fully mature, with continuous monitoring, advanced security controls, and regular audits?

6. What is your organization’s risk tolerance?

• Are you willing to accept some level of risk, given the non-critical nature of our data?
• Do you prefer to minimize risk through enhanced security measures but still accept some level of exposure?
• Are you committed to minimizing risk as much as possible, even if it means implementing the highest level of security controls?

7. How often do you need to demonstrate compliance?

• Are your partners satisfied with self-assessments?
• Do they expect regular, external validation of our security measures?
• Do they require ongoing, stringent validation with full on-site inspections?

By answering these questions, you can better understand your organization’s needs and determine which TISAX assessment level is appropriate. The more sensitive the information you handle and the greater the potential impact of a security breach, the higher the level of TISAX you’ll likely need to pursue.

If you’re still unsure, you can consult with a TISAX audit provider or consultant who can help assess your compliance needs. Secureframe has a team of 30+ in-house compliance experts and former auditors who can provide tailored recommendations for your business needs and regulatory landscape.