Energy Sector Vendor Risk Assessment Template

The Energy Sector Vendor Risk Assessment Template systematically evaluates third-party risks specific to critical infrastructure providers, utilities, and energy companies. It maps vendor controls against NERC CIP, FERC requirements, and industry-specific cybersecurity standards while establishing risk tiers based on grid access, data sensitivity, and operational impact.

Key takeaways:

• Addresses unique energy sector risks: grid security, SCADA systems, OT/IT convergence
• Maps to NERC CIP controls and critical infrastructure protection requirements
• Includes specific assessment criteria for renewable energy vendors and smart grid technology
• Provides weighted scoring for operational resilience and disaster recovery capabilities
• Pre-built evidence requests aligned with energy sector regulatory audits

Energy sector organizations face vendor risks that extend beyond traditional IT security concerns. Your third parties might access operational technology controlling power generation, transmission systems, or customer usage data protected under state and federal privacy regulations. A misconfigured vendor system could trigger grid instability, regulatory violations carrying million-dollar fines, or expose critical infrastructure to nation-state threats.

Standard vendor assessments miss energy-specific control requirements. Generic questionnaires won't capture whether your smart meter vendor encrypts data in transit across cellular networks or if your maintenance contractor follows NERC CIP physical security protocols when accessing substations. The Energy Sector Vendor Risk Assessment Template addresses these gaps by incorporating industry-specific risk scenarios, regulatory requirements, and operational considerations that generic frameworks overlook. It translates complex energy regulations into practical assessment criteria your team can execute consistently across vendor types.

Core Template Structure

The template organizes vendor assessments into seven distinct sections, each targeting energy sector-specific risks:

1. Vendor Classification and Criticality Scoring

Start by categorizing vendors using energy sector criteria:

• Grid Impact Level: Direct control (SCADA/EMS vendors), indirect influence (demand response providers), or no operational impact
• Data Classification: Bulk Electric System information, Critical Energy Infrastructure Information (CEII), customer usage data, or public information
• Regulatory Scope: Subject to NERC CIP, state PUC requirements, FERC standards, or general commercial terms
• Recovery Time Criticality: Real-time operations (≤15 minutes), same-day recovery (≤24 hours), or standard business continuity (≤72 hours)

2. Regulatory Compliance Mapping

The template maps vendor controls to specific energy regulations:

Regulation	Key Vendor Requirements	Evidence Types
NERC CIP-013	Supply chain risk management plan, vendor cyber incident disclosure	Security event logs, incident response procedures
FERC Order 2222	DER aggregator cybersecurity controls, market participation security	Architecture diagrams, penetration test results
DOE C2M2	Cybersecurity capability maturity across 10 domains	Self-assessment scores, third-party audit reports
State Privacy Laws	Customer energy usage data protection, consent management	Data flow diagrams, encryption certificates

3. OT/IT Security Assessment

Energy vendors often bridge operational and information technology environments. The template includes specific controls for:

SCADA and Industrial Control Systems

• Network segmentation between corporate and control networks
• Patch management procedures for legacy OT systems
• Physical security for remote terminal units (RTUs)
• Authentication methods for engineering workstations

Smart Grid Technologies

• Advanced Metering Infrastructure (AMI) security controls
• Distributed Energy Resource (DER) communication protocols
• Vehicle-to-grid (V2G) integration security
• Demand response system isolation

4. Physical Security and Resilience

Energy infrastructure vendors require heightened physical security assessments:

• Substation access control procedures
• Background check requirements for field personnel
• Climate resilience measures for critical facilities
• Electromagnetic pulse (EMP) protection for data centers
• Backup power generation and fuel supply contracts

5. Supply Chain Risk Indicators

The template evaluates multi-tier supply chain risks unique to energy:

• Country of origin for critical components (transformers, inverters, batteries)
• Software bill of materials (SBOM) for firmware in field devices
• Alternative supplier identification for single-source components
• Lead times for critical spare parts
• Geopolitical risk assessment for international suppliers

Implementation Best Practices

Risk Tiering Methodology

Assign vendors to risk tiers based on composite scores:

Tier 1 (Critical):

• Direct grid control OR
• Access to CEII data OR
• Single point of failure for operations
• Quarterly assessments required

Tier 2 (High):

• Indirect operational impact AND
• Access to customer data OR
• Supports NERC CIP compliance
• Annual assessments required

Tier 3 (Medium):

• No operational impact
• Limited data access
• Standard commercial relationship
• Biennial assessments sufficient

Evidence Collection Workflow

1. Pre-Assessment Data Gathering (2 weeks before)

   • Send tailored DDQ based on vendor tier
   • Request specific artifacts: network diagrams, audit reports, insurance certificates
   • Schedule technical deep-dive calls for Tier 1 vendors

2. Assessment Execution (1-2 days)

   • Review submitted evidence against control requirements
   • Document gaps with specific remediation requirements
   • Calculate risk scores using weighted criteria

3. Post-Assessment Actions (Within 1 week)

   • Generate remediation plans for critical findings
   • Establish continuous monitoring for high-risk vendors
   • Update contract terms to address identified gaps

Control Mapping Examples

Map vendor controls to multiple frameworks simultaneously:

Example: Cloud SCADA Provider Assessment

• NERC CIP-005 R1: Document all external routable connectivity
• ISO 27001 A.13.1: Verify network segmentation controls
• NIST 800-82: Confirm industrial control system security measures
• SOC 2 Type II: Review availability and confidentiality controls

Example: Renewable Asset Management Platform

• NERC CIP-013: Validate software integrity controls
• ISO 27018: Assess customer data privacy protections
• FERC 2222: Verify DER aggregation security
• State RPS compliance: Confirm renewable energy credit tracking

Common Implementation Mistakes

1. Over-Assessing Low-Risk Vendors

Teams often apply full assessments to all vendors. Your office supply vendor doesn't need the same scrutiny as your generation control system provider. Use the risk tiering matrix to right-size assessment efforts.

2. Ignoring Operational Technology Risks

Traditional IT questionnaires miss OT-specific vulnerabilities. Always include questions about:

• Real-time operating system patching constraints
• Air-gapped network verification methods
• Safety instrumented system (SIS) segregation
• Historian database security controls

3. Accepting Generic Compliance Attestations

"We're SOC 2 compliant" doesn't address energy-specific risks. Require evidence showing:

• Specific NERC CIP control implementation
• Energy sector incident response procedures
• Grid reliability impact assessments
• Utility-specific data handling procedures

4. Static Annual Reviews

Energy sector threats evolve rapidly. Implement continuous monitoring for critical vendors:

• Quarterly security posture updates
• Real-time vulnerability notifications
• Regulatory change impact assessments
• Supply chain disruption alerts

5. Insufficient Remediation Tracking

Identifying risks without fixing them wastes assessment efforts. Build remediation tracking into your process:

• Assign risk owners for each finding
• Set remediation deadlines based on criticality
• Require evidence of completed fixes
• Re-test controls after remediation

Frequently Asked Questions

How does this template differ from standard vendor risk assessments?

It includes energy-specific criteria like NERC CIP compliance verification, OT security controls, grid reliability impact scoring, and physical security requirements for critical infrastructure access that generic templates miss.

Which vendors should undergo full energy sector assessments?

Any vendor with grid control capabilities, access to CEII data, ability to impact bulk electric system reliability, or providing technology for NERC CIP compliance should receive comprehensive energy-focused assessments.

How do we handle renewable energy vendors with limited security maturity?

Apply risk-based controls proportional to their grid impact. Smaller solar installers might only need basic cybersecurity hygiene checks, while utility-scale wind farm operators require full NERC CIP-aligned assessments.

Can this template work for natural gas and pipeline operators?

Yes, with modifications. Add TSA Pipeline Security Directive requirements, PHMSA compliance checks, and specific controls for SCADA systems managing gas compression and flow.

What evidence should we require from smart grid technology vendors?

Request penetration test results for customer-facing systems, encryption specifications for data transmission, third-party security certifications, and detailed architecture diagrams showing network segmentation between utility and customer environments.

How often should we update the template for regulatory changes?

Review quarterly at minimum. NERC standards update regularly, FERC issues new orders impacting vendor requirements, and state regulations constantly evolve. Assign someone to track Federal Register notices and NERC posting schedules.

Should municipal utilities use different assessment criteria than investor-owned utilities?

The core security controls remain similar, but adjust compliance mappings. Municipal utilities might emphasize public records requirements, local government cybersecurity standards, and state-specific regulations over FERC requirements.