Every mature third-party risk management (TPRM) program relies on risk assessment questionnaires to collect information on vendor controls and spotlight potential exposures. With various questionnaire options to choose from, how do you know where to start? When building your TPRM program, one of the most significant decisions is determining which questionnaire(s) to use and when and how to operationalize them.
In this post, we’ll review the purpose of vendor risk assessment questionnaires, examine the challenges in the questionnaire process, and provide a basic third-party risk assessment template with sample questions to get you started.
A vendor risk assessment questionnaire is a structured document used to evaluate the risks associated with third-party vendors and partners. It helps organizations identify potential weaknesses in their vendors' security, privacy, and compliance practices. These questionnaires are integral to third-party risk management (TPRM) programs, enabling companies to ensure that their vendors meet their security and compliance standards.
Third-party risk assessors and risk managers share the common goal of reducing risk – and that starts with information gathering. Risk assessment questionnaires are a great way to get an inside-out, trust-based view of a vendor's security, privacy, and compliance controls. They address a plethora of TPRM concerns, such as:
While questionnaires are just one part of the third-party risk management equation, they're the best mechanism for obtaining a detailed internal perspective of vendor risk.
Vendor risk assessment questionnaires are essential for identifying vulnerabilities that could expose your organization to data breaches or cyberattacks through third-party vendors. Businesses' increasing reliance on cloud solutions, outsourced services, and third-party platforms means they share vast amounts of sensitive data with external entities. A vendor’s weak cybersecurity practices can quickly become a significant threat to your organization.
Free Template: Top 20 TPRM Questions (XLS)
Use this free third-party risk questionnaire to jump start your third-party risk assessment process with the top 20 control questions to ask vendors.
Creating a risk assessment questionnaire from scratch can be challenging. Many organizations opt for an industry-standard third-party risk assessment template, such as the Standard Information Gathering (SIG) questionnaire or the H-ISAC questionnaire for healthcare organizations, which is a good starting point. Templates based on established frameworks ensure that your questionnaire addresses critical areas like data security, regulatory compliance, and operational resilience.
A third-party risk questionnaire typically includes questions about:
Utilizing industry-standard questionnaires can get you started faster by providing an accepted pool of content your vendors are likely already familiar with. These templates offer a foundation, but organizations should adapt them to their specific needs, depending on their risk tolerance, industry, and regulatory requirements. A balanced approach ensures the questionnaire gathers relevant, accurate, and effective information tailored to each vendor's role.
For those just getting started, we’ve compiled the top 20 control questions to ask vendors. These questions serve as a starting point for evaluating vendors’ risk posture. They cover control areas from governance to information security to incident response management. Download our customizable Excel template for framework mapping, response options, and risk-scoring capabilities.
Customize these questions to your organization's needs, regulatory requirements, and risk tolerance. Download our third-party risk questionnaire Excel template for complete response options and scoring.
Vendor Risk Assessment: The Definitive Guide
Download this 18-page guide to gain comprehensive guidance on how to conduct and implement vendor risk assessments at your organization.
While vendor risk assessment questionnaires are essential, they are not without challenges:
Labor-Intensive: Completing a vendor risk assessment questionnaire can be time-consuming, especially for organizations that rely on numerous vendors. The questionnaires' development, distribution, and analysis require dedicated resources and expertise.
Snapshot in Time: Security questionnaires offer only a snapshot of a vendor’s security posture at a given moment. Cybersecurity is a rapidly evolving field, and new vulnerabilities can arise after completing the questionnaire.
Vendor Fatigue: Many vendors are overwhelmed by the repetitive nature of risk assessment questionnaires from different clients. As a result, vendors may delay or deprioritize completing these forms, hindering the overall assessment process.
Complex Supply Chains: With today’s interconnected supply chains, organizations need to assess the risks associated with third-party and fourth-party vendors—those that your vendors work with. This adds another layer of complexity to the risk management process.
It's easy to fall into analysis paralysis when selecting a single, "perfect" questionnaire. However, proper due diligence isn't feasible with a one-and-done approach. As soon as you receive questionnaire responses, the information gets stale. Maintaining real-time risk knowledge and awareness requires continuous evaluation. Whether using a standardized or proprietary approach, ensure that potential TPRM solution providers offer the flexibility to deliver industry-standard and custom questionnaires.
These include industry-standard questionnaires like the Standard Information Gathering (SIG) Lite or the Healthcare Information Sharing and Analysis Center (H-ISAC) Lite, as well as questionnaires specific to compliance and security frameworks (e.g., CMMC, GDPR, FCA, PCI, ISO 27001, NIST, etc.). Look for solutions that automatically map questionnaires to relevant frameworks, helping streamline your survey collection and management process.
Seek the capability to import or create items for review during the assessment process, along with customization options for combining questions to meet unique needs.
Vendor risk assessment is not a one-time process. It should be repeated regularly, especially for high-risk vendors. The frequency of reassessments depends on the vendor's criticality to your operations and the sensitivity of the data they handle. Companies operating in highly regulated industries may need to reassess their vendors annually or more frequently, depending on the applicable compliance requirements.
Complement periodic internal assessments with continuous external vendor threat monitoring. Cybersecurity risks evolve rapidly, and a vendor’s security posture can change quickly due to new vulnerabilities, incidents, or changes in their business processes. Continuous monitoring is essential to keeping up with these changes. Monitoring provides additional intelligence that can both reveal potential risks as they arise and be used to validate assessment responses regarding specific controls.
Vendor risk assessment questionnaires are essential to a robust third-party risk management program. Organizations should combine these questionnaires with real-time security monitoring, automated risk management tools, and ongoing vendor assessments to manage third-party risk effectively.
The right combination of tools and strategies will help you mitigate the risks associated with your vendor network, ensuring your business remains secure in an increasingly interconnected world. Our comprehensive guide provides more insight into the vendor risk assessment process. To learn how Prevalent can help you streamline it, schedule a strategy call or demo today.
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