Supplier Risk Questionnaire

Managing third-party risk without a standardized supplier risk questionnaire wastes 15-20 hours per vendor assessment. You're manually recreating questions, chasing incomplete responses, and struggling to compare vendors using different evaluation criteria.

A properly designed supplier risk questionnaire transforms chaotic vendor assessments into repeatable, defensible processes. It standardizes evidence collection across your vendor portfolio, enabling consistent risk tiering and control mapping. The questionnaire serves as your primary due diligence artifact, capturing everything from security certifications to incident response procedures in a format that satisfies both internal stakeholders and external auditors.

The most effective questionnaires balance comprehensiveness with practicality. They extract maximum risk insight while respecting vendor resources. This guide breaks down the essential components, industry-specific adaptations, and implementation strategies that separate time-wasting paperwork from genuine risk reduction.

Core Questionnaire Sections

Information Security Controls

Your security section forms the questionnaire backbone. Focus on controls that directly impact your data:

Access Management

• Multi-factor authentication requirements
• Privileged access management procedures
• Employee termination processes (24-hour access revocation target)
• Third-party access documentation

Data Protection

• Encryption standards (at-rest: AES-256, in-transit: TLS 1.2+)
• Data classification schemes
• Retention and disposal procedures
• Cross-border transfer mechanisms

Incident Response

• Notification timelines (specify 24/48/72-hour requirements)
• Incident classification matrix
• Root cause analysis procedures
• Breach history (last 3 years)

Compliance and Regulatory

Structure this section around your specific regulatory obligations:

Certifications and Attestations

• SOC 2 Type II (request latest report)
• ISO 27001 (verify certificate validity)
• Industry-specific: HITRUST, PCI-DSS, FedRAMP
• Penetration testing frequency and scope

Privacy Controls

• GDPR Article 28 compliance evidence
• CCPA service provider addendum
• Data subject request procedures
• Privacy impact assessment documentation

Business Continuity

Operational Resilience

• RTO/RPO commitments by service tier
• Geographic redundancy architecture
• Pandemic response protocols
• Supply chain diversity metrics

Industry-Specific Applications

Financial Services

Financial institutions require enhanced controls per OCC Bulletin 2013-29 and EBA Guidelines on Outsourcing:

Control Area	Standard Requirement	Enhanced FS Requirement
Background Checks	Basic criminal	FINRA/FCA verification
Data Residency	Documented locations	No data in high-risk jurisdictions
Audit Rights	Annual review	Quarterly + surprise audits
Insurance	General liability	Cyber insurance minimums ($10M+)

Healthcare

HIPAA-covered entities need additional safeguards:

• Workforce training logs (annual HIPAA training)
• Business Associate Agreement execution
• PHI encryption verification
• Minimum necessary access documentation

Technology/SaaS

Focus on API security and development practices:

• SDLC documentation with security checkpoints
• Vulnerability disclosure program details
• Open source component management
• Multi-tenancy isolation controls

Framework Alignment Strategy

SOC 2 Mapping

Structure questions to collect evidence for Trust Service Criteria:

CC6.1 (Logical Access Controls) Question: "Describe your password policy including complexity requirements, rotation frequency, and storage methods." Evidence needed: Policy document + screenshot of system configuration

CC7.2 (System Monitoring) Question: "Detail your security event monitoring capabilities including log types collected, retention periods, and alerting thresholds." Evidence needed: SIEM screenshots + alert configuration

ISO 27001 Integration

Align with Annex A controls:

• A.12.1.1: Map to change management questions
• A.13.1.2: Map to network segmentation queries
• A.15.1.2: Map to supplier contract terms

Implementation Best Practices

Question Design Principles

1. Binary where possible: "Do you encrypt data at rest? Y/N" followed by "If yes, specify algorithm"
2. Evidence-based: Request specific artifacts, not just descriptions
3. Risk-weighted: More critical vendors get expanded question sets

Scoring Methodology

Create objective scoring criteria:

Critical Control Failure = Automatic High Risk
- No encryption for data at rest
- No incident response plan
- No access control procedures

Point-Based System:
0-25 points = Low Risk
26-50 points = Medium Risk
51+ points = High Risk

Response Timeline Management

Set clear expectations:

• Initial questionnaire: 10 business days
• Follow-up clarifications: 3 business days
• Annual updates: 15 business days

Common Implementation Mistakes

Over-questioning Low-Risk Vendors Sending 300-question assessments to your coffee supplier wastes everyone's time. Implement tiered questionnaires:

• Tier 1 (Critical): 150-200 questions
• Tier 2 (Important): 75-100 questions
• Tier 3 (Low Risk): 25-50 questions

Accepting Vague Responses "We follow industry best practices" tells you nothing. Require specific evidence:

• Policy excerpts
• Configuration screenshots
• Audit report sections
• Contractual commitments

Ignoring Response Quality Signals Red flags indicating deeper issues:

• Copy-pasted responses across different questions
• Outdated documentation (policies last updated 3+ years ago)
• Refusal to provide standard evidence (SOC 2 reports)

Manual Tracking in Spreadsheets Spreadsheet management breaks at 50+ vendors. You'll miss reassessment dates, lose version control, and create audit nightmares. Transition to purpose-built GRC platforms when you exceed 30 active vendor relationships.

Frequently Asked Questions

How many questions should a supplier risk questionnaire contain?

Base questionnaires should include 75-100 questions for standard vendors, expanding to 150-200 for critical suppliers. Tier by data access level, regulatory impact, and service criticality.

What's the difference between a supplier risk questionnaire and a vendor security assessment?

A supplier risk questionnaire covers all risk domains (security, privacy, operational, financial), while vendor security assessments focus specifically on information security controls. Most organizations use supplier risk questionnaires as their primary assessment tool.

How often should we reassess vendors using questionnaires?

Critical vendors require annual reassessment, standard vendors every 2 years, and low-risk vendors every 3 years. Trigger immediate reassessment for material changes like breaches, ownership changes, or new data access.

Should we accept vendor-provided questionnaires instead of our own?

Accept standardized questionnaires (SIG Lite, CAIQ) as baseline evidence, but supplement with your specific requirements. Map vendor responses to your control framework to ensure complete coverage.

How do we handle vendors who refuse to complete questionnaires?

Document the refusal as a risk indicator. For critical vendors, escalate to procurement and legal. For non-critical vendors, implement compensating controls or consider alternative suppliers.

What evidence should we require with questionnaire responses?

Require dated evidence for critical controls: security policies, audit reports (SOC 2, ISO), network diagrams, incident response plans, and insurance certificates. Screenshots suffice for configuration verification.

Can AI help analyze questionnaire responses?

AI tools can flag inconsistencies, extract key risks, and compare responses across vendors. However, human review remains essential for risk decisions and evidence validation.