Free Vendor Risk Assessment Template including Questionnaire

A vendor risk assessment (VRA), also known as a vendor risk review, is a process used by businesses to identify and evaluate the potential risks associated with using third-party vendors. Vendor risk assessment specifically focuses on risks associated with the third-party suppliers of different services (can also be product-based) to your organization.

Often there is a confusion between Vendor Risk Assessment and Third Party Risk Assessment. While they both share closely related practices, there is a thin line between them. Where vendor risk assessments assess the risks associated with vendors, such as - supply chain risks, the financial instability of the vendor, data security breaches, etc. Third-party risk assessments consider a wider range of risks outgrowing the vendor-specific risks. These can include operational risks, reputational risks, environmental risks, and regulatory risks to name a few.

Think of vendor risk management as a magnifying glass that focuses only on vendors, while third-party risk management is a wider lens capturing all your third-party relationships. To make it more consumable - VRM is a subset of Third-party Risk Management.

What is a Vendor Risk Assessment questionnaire?

A vendor risk assessment questionnaire is a standardized set of questions that are designed by an organization to gather information from a vendor about their security controls, compliance practices, and overall risk posture. The VRA questionnaire helps businesses assess the potential risks associated with using a particular vendor.

In this blog, we have prepared a VRA questionnaire template for Information security and privacy, Physical and data center security, Web application security, and Infrastructure security.

Note: This questionnaire does not belong to any specific industry and organizations can use and modify the questions based on their needs or required standards.

Now let us take a look at the questions;

Information Security and Privacy Questionnaire

1. Do you have a written information security policy that addresses data confidentiality, integrity, and availability?
2. What access controls do you have in place to restrict access to sensitive data (e.g., role-based access control, multi-factor authentication)?
3. How do you encrypt data at rest and in transit?
4. What procedures do you have in place for vulnerability management (identifying, patching, and remediating vulnerabilities in systems)?
5. How do you monitor your systems for security threats and incidents?
6. Do you have an incident response plan for handling data breaches and other security incidents?
7. How do you train your employees on information security best practices?
8. Do you conduct regular security awareness training for your employees?
9. Are you compliant with any relevant industry regulations or data privacy laws (e.g., PCI DSS, HIPAA, GDPR)?
10. How do you handle customer data requests (e.g., access, rectification, erasure)?
11. Do you have a data retention and disposal policy?
12. How do you conduct penetration testing and vulnerability assessments on your systems?
13. Do you have a third-party risk management program to assess the security of your own vendors?
14. Are you willing to undergo a security audit by an independent third party?
15. How do you ensure the security of your cloud infrastructure (if applicable)?

Physical and Data Center Security Questionnaire

1. Do you own and operate your data centers, or do you utilize a colocation provider?
2. In what geographical locations are your data centers situated?
3. What physical security measures are in place at your data centers (e.g., fencing, security cameras, access control systems)?
4. How is access to the data center perimeter controlled (e.g., key cards, biometric authentication)?
5. Do you have 24/7 security personnel on-site at your data centers?
6. What environmental controls are in place to protect against fire, flooding, and other natural disasters?
7. How is the physical security of your data centers monitored (e.g., security logs, video surveillance)?
8. Do you have a business continuity and disaster recovery (BCDR) plan in place for your data centers?
9. How is your data center infrastructure maintained and secured (e.g., regular maintenance checks, and intrusion detection systems)?
10. What procedures do you have in place for visitor access to your data centers?
11. Are your data centers subject to any independent security audits or certifications?
12. Do you have a process for background checks on data center personnel?
13. How do you handle the disposal of electronic waste generated by your data centers?
14. Can you provide a detailed description of your data center security architecture?
15. Are you willing to offer a virtual tour of your data centers (if applicable)?

Web Application Security Questionnaire

1. Does your application have a valid SSL certificate to prevent man-in-the-middle attacks?
2. Do you follow a secure development lifecycle (SDLC) that incorporates web application security practices?
3. What tools and methodologies do you use for static and dynamic application security testing (SAST and DAST)?
4. How do you identify and remediate vulnerabilities in web applications hosted on your platform?
5. What web application security best practices do you enforce for your customers (e.g., secure coding practices, input validation, session management)?
6. Do you offer any web application security scanning or penetration testing services for your customers?
7. How do you patch vulnerabilities in your cloud infrastructure and web application frameworks?
8. What steps do you take to mitigate common web application vulnerabilities (e.g., SQL injection, cross-site scripting (XSS), insecure direct object references (IDOR))?
9. Do you have a web application firewall (WAF) in place to protect against web application attacks?
10. How do you monitor web application traffic for suspicious activity?
11. What is your incident response procedure for web application security incidents?
12. How do you handle customer data breaches that originate from web application vulnerabilities?
13. Do you offer any features or capabilities for secure configuration of web applications on your platform?
14. How do you ensure the secure coding practices of your own development teams for cloud infrastructure and services?
15. Are you willing to share security reports related to your web application infrastructure?
16. Do you offer any resources or documentation on web application security best practices for your customers?

Infrastructure Security Questionnaire

1. Do you employ a layered security approach for your cloud infrastructure (physical, network, application)?
2. How are your data centers physically secured (access control, security cameras, environmental controls)?
3. How do you segment your cloud infrastructure to isolate customer data and workloads?
4. What network security controls do you have in place (firewalls, intrusion detection/prevention systems)?
5. How do you manage and secure access to your cloud infrastructure (user access controls, privileged user access)?
6. What is your process for patching and updating operating systems and software on your cloud infrastructure?
7. Do you conduct regular vulnerability assessments and penetration testing of your cloud infrastructure?
8. How do you monitor your cloud infrastructure for suspicious activity and potential security incidents?
9. What disaster recovery and business continuity plans do you have in place for your cloud infrastructure?
10. How do you back up your customer data and how often are backups tested?
11. What is your process for data recovery in case of a disaster or security incident?
12. Do you offer customer-managed encryption keys for your cloud storage?
13. How do you handle customer data deletion requests?
14. Are you compliant with relevant industry security standards (e.g., SOC 2, ISO 27001)?
15. Can you provide a detailed service-level agreement (SLA) outlining your security commitments and performance guarantees?

How can you validate your vendor risk management template?

As we always say; Security is not a set-and-forget practice. Understand the fact that cybercriminals are continuously evolving and so are their attack methods. If you as an organization are not evolving your risk mitigation strategies - All the best with your security!

Validating your vendor risk assessment (VRA) templates ensures they are effective in identifying and mitigating potential risks associated with your vendors. From our podcast conversations with various industry experts, we have noticed and explained three key validation strategies that organizations can follow;

Internal Review

• Subject Matter Expert: Involve relevant internal teams (security, IT, legal, procurement) to review the template for completeness and alignment with their areas of expertise.
• Scenario Testing: Test the template by applying it to hypothetical vendor situations with multiple risk profiles. This helps identify if the template captures the nuances of different vendor types and data sensitivity levels.
• Benchmarking: Compare your template against industry best practices or established frameworks like the NIST Cybersecurity Framework or ISO, etc.

External Validation

• Industry Standards: Consider utilizing standardized VRA questionnaires like SIG (Shared Assessments) or CSA (Cloud Security Alliance) questionnaires for specific vendor categories.
• Independent Reviews: Engage a third-party security or risk management consultant to review your template and provide an objective assessment of its effectiveness.
• Vendor Feedback: Pilot the VRA template with a small group of vendors and gather their feedback on clarity, relevance, and ease of completion.

Continuous Improvement

• Regular Updates: Schedule regular reviews of your VRA template to keep it current with evolving threats, industry regulations, and changes in your own risk tolerance.
• Lessons Learned: Analyze data from past VRAs and vendor security incidents to identify areas where the template could be strengthened.
• Metrics and Reporting: Track key metrics based on VRA findings (e.g., number of high-risk vendors, common security weaknesses identified). This data helps you demonstrate the effectiveness of your VRA program and identify areas for improvement.

In conclusion

As I’ve mentioned above, security is not a set-and-forget practice. While standardized templates offer a foundation, you should feel free to tailor them to your specific risk tolerance, industry regulations, and the types of vendors you engage with. Make sure your VRA questionnaire goes far beyond just collecting information. You should be able to identify potential risks and prioritize mitigation strategies.

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• Bridging the Gap: Making Cloud Security a Shared Responsibility
• Building Cybersecurity Teams
• Principles of Maturity and the Power of Hands-On Learning

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