Managed Service Provider Assessment Template

Your MSP handles critical infrastructure. They patch your servers at 3 AM. They have domain admin rights. They store your backups. Yet most organizations assess MSPs using generic IT vendor questionnaires that miss fundamental risks.

MSP relationships differ from SaaS vendors in three ways: privileged access scope, infrastructure dependencies, and incident response integration. A proper MSP assessment template addresses these unique exposure points through targeted control questions, evidence requirements, and risk scoring methodology.

This template structures your MSP due diligence process to capture the right information upfront. You'll evaluate security maturity, operational capabilities, and compliance alignment before signing contracts. The framework adapts to your industry requirements — whether you need HIPAA-compliant healthcare MSPs or SOC 2 Type II attestations for financial services.

Core Template Structure

The MSP assessment template organizes into seven critical sections, each weighted by risk impact:

1. Access Control and Identity Management (25% weight)

MSPs require privileged access by definition. This section evaluates:

• Multi-factor authentication enforcement for all administrative access
• Privileged access management (PAM) tool deployment
• Access review frequency and de-provisioning procedures
• Jump box/bastion host requirements
• Session recording and monitoring capabilities

Evidence requirements: PAM tool screenshots, access review logs from last quarter, MFA policy documentation, sample session recordings.

2. Security Operations and Incident Response (20% weight)

Your MSP becomes an extension of your security team. Assess:

• 24/7 SOC availability and response SLAs
• Incident classification and escalation procedures
• Integration with your SIEM/logging infrastructure
• Vulnerability management program maturity
• Patch management windows and emergency procedures

Evidence requirements: Incident response runbooks, sample incident reports, SOC 2 Type II report sections 3.6-3.8, vulnerability scan reports from last 30 days.

3. Data Protection and Privacy (20% weight)

MSPs process and store sensitive data during support activities. Evaluate:

• Data classification and handling procedures
• Encryption standards for data at rest and in transit
• Backup retention and destruction policies
• Cross-border data transfer controls
• GDPR Article 28 compliance (for EU operations)

Evidence requirements: Data flow diagrams, encryption certificates, DPA template, data inventory spreadsheet, backup test results.

4. Business Continuity and Availability (15% weight)

MSP downtime equals your downtime. Review:

• RTO/RPO commitments by service tier
• Redundancy architecture (geographic, personnel, systems)
• BC/DR test results and frequency
• Communication protocols during outages
• Financial viability indicators

Evidence requirements: BC/DR test reports from last 12 months, architecture diagrams showing redundancy, audited financials or D&B report.

5. Personnel Security (10% weight)

MSP staff directly access your systems. Verify:

• Background check requirements by role
• Security awareness training program
• Confidentiality agreement enforcement
• Insider threat monitoring
• Subcontractor vetting procedures

Evidence requirements: Background check policy, training completion records (last 90 days), sample confidentiality agreements, subcontractor list with attestations.

6. Compliance and Audit (10% weight)

Regulatory alignment reduces your compliance burden. Confirm:

• Current certifications (SOC 2, ISO 27001, ISO 20000)
• Industry-specific compliance (HIPAA, PCI DSS, FedRAMP)
• Right to audit clauses
• External assessment frequency
• Control exception tracking

Evidence requirements: Current certification letters, bridge letters for gaps, audit reports, control exception log with remediation dates.

Industry-Specific Considerations

Financial Services

FFIEC guidelines require enhanced due diligence for critical service providers. Your MSP assessment must include:

• Concentration risk analysis: How many other financial institutions use this MSP?
• Regulatory compliance: SOC 2 Type II mandatory, ISO 27001 preferred
• Data residency: Explicit controls preventing offshore access
• Audit rights: Annual onsite audit option required

Add supplemental questions on change management approvals, segregation of duties, and financial crime compliance.

Healthcare

HIPAA requires Business Associate Agreements (BAAs) with specific technical safeguards:

• Access controls: Role-based access with audit logging per 45 CFR 164.312(a)
• Encryption: NIST-approved algorithms for PHI per 45 CFR 164.312(e)
• Incident response: 60-day breach notification per 45 CFR 164.410
• Workforce training: Annual HIPAA training documentation

Include BAA template alignment check and technical safeguards assessment per NIST 800-66.

Technology/SaaS Companies

MSPs supporting tech companies face unique challenges:

• Multi-tenant security: Isolation between customer environments
• API security: Assessment of any programmatic interfaces
• DevOps integration: CI/CD pipeline access controls
• Source code protection: Explicit prohibitions on code access

Weight security operations and access control sections higher (many each) for technology sector assessments.

Implementation Best Practices

1. Pre-Assessment Scoping

Define MSP criticality before sending the DDQ:

• Tier 1 (Critical): Domain admin access, handles customer data, single point of failure
• Tier 2 (High): Limited privileged access, redundant service, no direct customer data
• Tier 3 (Medium): Read-only access, non-production systems only

Adjust assessment depth by tier. Tier 1 requires all sections plus evidence validation. Tier 3 might skip personnel security details.

2. Evidence Validation Framework

Build evidence requirements into each question:

Q: Describe your patch management process.
Evidence Required: 
- Patch management policy (document)
- Last 3 months of critical patch metrics (report)
- Sample change request for emergency patch (ticket)

This prevents back-and-forth requests and accelerates review cycles.

3. Control Mapping Integration

Map template questions to your control framework:

• SOC 2: CC6.1 (Logical Access), CC7.2 (System Monitoring)
• ISO 27001: A.9 (Access Control), A.12 (Operations Security)
• NIST CSF: PR.AC (Access Control), PR.IP (Information Protection)

This enables gap analysis against your existing compliance requirements.

4. Risk Scoring Automation

Implement weighted scoring by section:

• Critical controls (MFA, encryption, backups): 3x multiplier
• Standard controls: 1x multiplier
• Compensating controls accepted: 0.5x penalty

Set auto-rejection thresholds: <60% overall score or any critical control failure.

Common Implementation Mistakes

1. One-Size-Fits-All Approach

MSPs vary dramatically. Your domain controller management partner needs deeper assessment than your printer maintenance vendor. Scale assessment depth to access level and data exposure.

2. Accepting Attestations Without Evidence

"We follow NIST standards" means nothing without evidence. Require specific artifacts: screenshots, logs, reports, policies. Trust but verify through documentation.

3. Ignoring Subcontractor Risk

MSPs frequently subcontract after-hours support or specialty services. Your assessment must explicitly cover fourth-party risk. Require notification and vetting procedures for any subcontracted work.

4. Static Annual Reviews

MSP environments change constantly through acquisitions, new clients, and service expansion. Implement triggered reassessments for material changes, not just calendar-based reviews.

5. Skipping Technical Validation

DDQ responses reflect policy, not practice. Supplement questionnaires with:

• Penetration test results review
• Architecture diagram walkthrough
• Sample log/SIEM integration testing
• Tabletop exercise participation

Frequently Asked Questions

How long should MSP assessment completion take?

Tier 1 critical MSPs: 2-3 weeks with evidence collection. Tier 2-3: 5-7 business days. Build SLAs into your vendor onboarding timeline.

What if an MSP refuses to complete our detailed assessment?

Red flag for Tier 1 providers. For Tier 2-3, accept SOC 2 Type II reports plus a supplemental questionnaire covering gaps. Never skip assessment entirely.

Should we use the same template for cloud service providers and MSPs?

No. CSPs and MSPs have fundamentally different risk profiles. MSPs need deeper access control and incident response sections. CSPs require stronger data residency and multi-tenancy isolation questions.

How often should we reassess existing MSPs?

Critical MSPs: annually with quarterly check-ins. High-risk: annually. Medium-risk: every 2 years. Trigger immediate reassessment for security incidents, ownership changes, or service expansions.

Can we accept SOC 2 reports instead of custom assessments?

SOC 2 Type II provides excellent baseline evidence but rarely covers MSP-specific risks like privileged access management and customer environment isolation. Use SOC 2 to accelerate assessment, not replace it.

What's the minimum evidence we should collect?

Critical controls require three evidence types: policy (intent), procedure (implementation), and proof (execution). Example: MFA policy document + configuration screenshot + login logs showing MFA challenges.

How do we handle MSPs that support multiple regulations?

Create a master controls matrix mapping your requirements to theirs. Focus assessment on gaps. An MSP with FedRAMP High often exceeds commercial requirements — verify specific control implementations rather than duplicating full assessment.