Cloud Vendor Security Assessment Template

Your cloud vendors process your most sensitive data, yet most organizations experienced a cloud security incident last year due to misconfigured services or inadequate vendor controls. A cloud vendor security assessment template transforms chaotic email threads into systematic evidence collection that actually maps to your compliance requirements.

This template specifically addresses cloud-unique risks that generic DDQs miss: multi-tenancy isolation, API security, data residency, and shared responsibility boundaries. Built from thousands of real cloud assessments, it captures the questions that surface actual vulnerabilities — not just checkbox compliance.

For TPRM managers drowning in manual assessments, this template provides pre-mapped questions to SOC 2 Trust Service Criteria, ISO 27001 Annex A controls, and CSA Cloud Control Matrix domains. Each question includes guidance on acceptable evidence types and red-flag responses that signal deeper investigation needs.

Core Template Sections

1. Infrastructure Security and Architecture

Start with the foundation. This section evaluates the vendor's underlying cloud infrastructure:

Physical Security Controls

• Data center locations and certifications (SOC 3, ISO 27001)
• Environmental controls and redundancy
• Physical access restrictions and audit logs

Network Architecture

• Network segmentation between customer environments
• DDoS protection capabilities
• Traffic encryption requirements (TLS 1.2+ enforcement)
• API gateway security controls

Compute and Storage Security

• Hypervisor isolation mechanisms
• Storage encryption at rest (AES-256 minimum)
• Key management practices (HSM usage, rotation schedules)
• Data deletion and media sanitization procedures

2. Identity and Access Management

Zero trust starts with identity. This section maps to ISO 27001 A.9 and SOC 2 CC6:

Authentication Requirements

• Multi-factor authentication enforcement
• SSO/SAML integration capabilities
• Password complexity and rotation policies
• Service account management procedures

Authorization and Access Control

• Role-based access control (RBAC) implementation
• Principle of least privilege enforcement
• Access review frequency and documentation
• Privileged access management (PAM) tools

Audit and Monitoring

• User activity logging retention periods
• Real-time alerting for privileged actions
• Log integrity protection mechanisms
• SIEM integration capabilities

3. Data Protection and Privacy

Critical for GDPR Article 28 and CCPA compliance:

Data Classification and Handling

• Data classification schema alignment
• Encryption requirements by data type
• Cross-border transfer mechanisms (SCCs, adequacy decisions)
• Data retention and disposal policies

Privacy Controls

• Data subject request procedures
• Sub-processor notification requirements
• Privacy impact assessment (PIA) processes
• Breach notification timelines and procedures

4. Application Security

Where most cloud breaches originate:

Secure Development Lifecycle

• SAST/DAST testing frequency
• Third-party penetration testing reports
• Vulnerability disclosure program details
• Code review requirements and coverage

API Security

• API authentication methods
• Rate limiting and throttling controls
• API versioning and deprecation policies
• API activity monitoring and anomaly detection

5. Business Continuity and Resilience

Maps to ISO 22301 and SOC 2 CC9.1:

Availability Commitments

• SLA terms and uptime history
• RTO/RPO commitments by service tier
• Multi-region deployment options
• Backup frequency and testing procedures

Incident Response

• Incident classification and escalation matrix
• Customer notification procedures and timelines
• Root cause analysis (RCA) commitments
• Tabletop exercise frequency and scope

Industry-Specific Applications

Financial Services

Additional focus areas for banks and fintechs:

Regulatory Compliance

• PCI DSS attestation level and scope
• FFIEC compliance alignment
• Data residency options for regulatory requirements
• Audit trail immutability for SEC Rule 17a-4

Questions to Add:

1. Describe your cryptographic key management lifecycle for payment data
2. How do you ensure transaction integrity across distributed systems?
3. What controls prevent unauthorized trading algorithm modifications?

Healthcare

HIPAA Business Associate Agreement (BAA) prerequisites:

PHI Protection

• HIPAA Security Rule control mapping
• Minimum necessary access enforcement
• Audit log retention for 6+ years
• Encryption in transit and at rest verification

Questions to Add:

1. How do you segregate PHI from other customer data?
2. What controls ensure HIPAA-compliant data destruction?
3. Describe your workforce HIPAA training program

Technology/SaaS

Focus on integration security and development practices:

Platform Security

• Multi-tenant isolation architecture
• API security testing requirements
• CI/CD pipeline security controls
• Container and orchestration security

Questions to Add:

1. How do you prevent tenant data leakage in shared infrastructure?
2. What supply chain security controls protect your software dependencies?
3. Describe your zero-day vulnerability response process

Compliance Framework Alignment

SOC 2 Type II Mapping

Template Section	TSC Criteria	Key Evidence Types
Infrastructure Security	CC6.1, CC6.6, CC6.7	Network diagrams, firewall rules, vulnerability scans
Identity Management	CC6.1, CC6.2, CC6.3	Access reviews, MFA reports, privileged access logs
Data Protection	CC6.5, CC6.7, PI1.1	Encryption certificates, key management policies
Business Continuity	A1.2, A1.3, CC9.1	DR test results, availability reports, incident logs

ISO 27001:2022 Coverage

The template addresses the majority of Annex A controls relevant to cloud services:

• A.5: Information security policies
• A.8: Asset management
• A.9: Access control
• A.10: Cryptography
• A.11: Physical security
• A.12: Operations security
• A.13: Communications security
• A.14: System acquisition and development
• A.17: Business continuity
• A.18: Compliance

CSA CCM v4.0 Alignment

Maps directly to 170+ Cloud Control Matrix controls across 17 domains, with specific focus on:

• AIS: Application & Interface Security
• DSP: Data Security & Privacy
• IAM: Identity & Access Management
• IVS: Infrastructure & Virtualization Security
• LOG: Logging and Monitoring

Implementation Best Practices

1. Pre-Assessment Preparation

Risk Tier Assignment Before sending the questionnaire:

• Classify vendor by data sensitivity (public, internal, confidential, restricted)
• Document service criticality (business critical, important, standard)
• Identify regulatory requirements applicable to the service
• Determine assessment depth based on risk tier

Evidence Collection Planning Set expectations upfront:

• Specify acceptable evidence formats (PDF reports, screenshots, live demos)
• Define evidence age limits (e.g., pen test reports < 12 months old)
• Request read-only access to security dashboards where applicable
• Schedule technical deep-dive sessions for critical vendors

2. Efficient Assessment Execution

Question Prioritization Not all questions are equal:

• Start with knockout criteria (e.g., missing SOC 2 for financial data processors)
• Focus on compensating controls if primary controls are weak
• Use branching logic — if they fail basic encryption, skip to remediation
• Allocate a large share of time to high-risk areas identified in pre-assessment

Evidence Validation Trust but verify:

• Cross-reference SOC 2 reports with questionnaire responses
• Request live demonstrations of critical controls
• Verify third-party certifications directly with auditors
• Test API security controls with approved scanning tools

3. Risk Scoring and Decision Making

Scoring Methodology Move beyond pass/fail:

• Weight controls by criticality (encryption = high, physical security = medium)
• Score maturity levels (ad-hoc, defined, managed, optimized)
• Calculate inherent vs. residual risk after compensating controls
• Generate heat maps by security domain for executive reporting

Common Mistakes to Avoid

1. One-Size-Fits-All Assessment

Sending the same 300-question DDQ to every vendor wastes everyone's time. A cloud backup provider needs different scrutiny than your core ERP platform. Tailor assessment depth to:

• Data classification levels processed
• Integration complexity with your environment
• Vendor's access to your systems
• Regulatory requirements specific to the service

2. Accepting Vague Responses

"We follow industry best practices" tells you nothing. Demand specificity:

• Which industry standards? (NIST CSF, CIS Controls, specific versions)
• What implementation level? (partial, substantial, full)
• When was the last assessment? (dates and assessor details)
• What exceptions exist? (documented compensating controls)

3. Ignoring Continuous Monitoring

Annual assessments miss 364 days of changes. Build ongoing visibility:

• Require notification of material security changes
• Monitor vendor security advisories and breach notifications
• Schedule quarterly check-ins for critical vendors
• Implement automated certificate and compliance monitoring

4. Focusing Only on Current State

Security degrades without attention. Evaluate trajectory:

• Review last three years of pen test findings
• Track remediation timelines for identified vulnerabilities
• Assess security investment trends
• Evaluate security team growth and expertise

5. Missing Subprocessor Risks

Your vendor's vendors matter. Require:

• Complete subprocessor lists with data access levels
• Notification of subprocessor changes
• Evidence of subprocessor vetting processes
• Right to object to high-risk subprocessors

Frequently Asked Questions

How long should vendors have to complete the cloud security assessment?

For comprehensive assessments, allow 2-3 weeks. Critical vendors processing sensitive data may need 4 weeks if extensive evidence collection is required. Tier 1 vendors should have most documentation readily available, reducing turnaround to 5-7 business days.

What if a vendor refuses to complete the full assessment citing confidentiality?

Offer alternatives: accept recent SOC 2 Type II reports with bridge letters for gaps, conduct an on-site assessment under NDA, or use a secure portal for sensitive evidence. Refusal to provide any security documentation is a red flag warranting vendor rejection or acceptance of heightened risk with compensating controls.

Should I use different templates for IaaS, PaaS, and SaaS vendors?

Yes, but start with a core template and add service-specific modules. IaaS assessments need deeper infrastructure controls, PaaS requires platform security and development practices, while SaaS focuses on application security and data handling. Maintain 60-most common questions for consistency.

How do I handle vendors who only have SOC 2 Type I or are "in process" for Type II?

Request their Type I report plus: detailed roadmap to Type II with timelines, interim penetration test results, current security policies and procedures, and monthly status updates. Set a deadline (typically 6-12 months) for Type II completion as a contractual requirement.

What's the minimum viable assessment for low-risk cloud vendors?

Focus on five critical areas: data encryption (at rest/in transit), access controls and MFA, incident response procedures, data location and sovereignty, and basic compliance certifications. This 20-question subset can be completed in under an hour while still capturing major risks.

How often should I reassess existing cloud vendors?

Critical vendors: annually with quarterly check-ins. Standard vendors: every 18 months. Low-risk vendors: every 2-3 years or upon significant changes. Automate continuous monitoring of certifications, vulnerabilities, and security advisories regardless of assessment schedule.

Can I rely solely on security ratings services instead of questionnaires?

No. Ratings services provide valuable outside-in visibility but miss internal controls, development practices, and vendor-specific implementations. Use ratings for initial screening and continuous monitoring, but comprehensive assessments remain essential for material vendors.