Common use of Adverse Event Clause in Contracts

Adverse Event. The Vendor must notify the State contact within three days if the Vendor becomes aware that an Adverse Event has occurred. An Adverse Event is the unauthorized use of system privileges, unauthorized access to State Data, execution of malware, physical intrusions and electronic intrusions that may include network, applications, servers, workstations, and social engineering of staff. If the Adverse Event was the result of the Vendor’s actions or inactions, the State can require a risk assessment of the Vendor the State mandating the methodology to be used as well as the scope. At the State’s discretion a risk assessment may be performed by a third party at the Vendor’s expense. State Data is any data produced or provided by the State as well as any data produced or provided for the State by a third-party.