TPRM Program Charter Template

Your TPRM program needs teeth. Without a formal charter, you're fighting vendor risks with inconsistent processes, unclear ownership, and no executive mandate. A TPRM Program Charter transforms ad-hoc vendor management into a repeatable, defensible program.

Think of it as your program's constitution—it defines who owns what, when assessments trigger, how risks escalate, and which controls apply to each vendor tier. More than policy documentation, it's your operational playbook that turns compliance requirements into executable workflows.

For GRC analysts drowning in manual assessments, a well-structured charter creates the foundation for automation. It standardizes risk tiering logic, assessment scoping, and evidence requirements—eliminating the guesswork that makes every vendor review feel like starting from scratch.

Core Sections of a TPRM Program Charter

1. Executive Summary and Program Objectives

Start with a one-page summary that connects third-party risks to business impact. Skip the platitudes about "vendor ecosystems"—executives need to understand why unmanaged SaaS sprawl could trigger a SOC 2 audit failure or how a critical vendor breach could violate GDPR Article 28.

Include quantifiable objectives:

• Reduce critical vendor assessment cycle time from 45 to 15 days
• Achieve most vendor population coverage for risk tiering
• Maintain <a notable share of exception rate on mandatory control attestations

2. Governance Structure and RACI Matrix

Document who makes decisions, who gets consulted, and who does the work:

Activity	Responsible	Accountable	Consulted	Informed
Risk Tiering	TPRM Analyst	TPRM Manager	Business Owner	CISO
Control Mapping	TPRM Analyst	Compliance Lead	Legal	TPRM Manager
Exception Approval	Business Owner	CISO	TPRM Manager	Audit Committee
Vendor Termination	Procurement	Business Owner	TPRM, Legal	Finance

3. Risk Tiering Methodology

Your charter must define explicit criteria for vendor classification. Avoid subjective terms like "strategic importance"—use measurable factors:

Critical Tier Criteria (any one triggers classification):

• Processes customer PII >100,000 records
• Annual contract value >$1M
• Single point of failure for revenue-generating service
• Access to production infrastructure
• Regulatory designation (e.g., GDPR processor, SOX relevant)

Moderate Tier Criteria:

• Processes employee data
• $100K-$1M contract value
• Business continuity dependency
• Non-production system access

Low Tier:

• No data access
• <$100K contract
• Multiple alternative vendors available
• Professional services only

4. Assessment Workflow and Frequency

Map assessment depth to risk tier:

Critical Vendors:

• Initial: Full on-site assessment + penetration test results
• Annual: Updated SOC 2 Type II, security questionnaire refresh
• Continuous: Quarterly business reviews, security scorecard monitoring

Moderate Vendors:

• Initial: Standard DDQ + evidence collection
• Annual: Abbreviated questionnaire, certification updates
• Continuous: Automated risk monitoring

Low Vendors:

• Initial: Self-attestation questionnaire
• Periodic: Bi-annual certification check
• Continuous: Sanctions screening only

5. Control Framework Mapping

Your charter should explicitly map regulatory requirements to vendor controls:

SOC 2 Alignment:

• CC6.1 → Vendor access reviews documented quarterly
• CC7.2 → Vendor security training attestations required
• CC9.2 → Sub-processor notification procedures mandatory

ISO 27001 Alignment:

• A.15.1 → Information security in supplier relationships
• A.15.2 → Supplier service delivery management

GDPR Article 28 Requirements:

• Data processing agreements for all EU data handlers
• Right to audit clauses mandatory
• 72-hour breach notification commitments

6. DDQ and Evidence Management

Standardize your questionnaire framework to enable benchmarking:

• Core security controls (40-60 questions)
• Data handling addendum (20-30 questions for data processors)
• Business continuity module (15-20 questions for critical vendors)
• Compliance certifications checklist

Evidence requirements by control domain:

• Access Control: Screenshot of user provisioning process, access review reports
• Encryption: Technical architecture diagram, certificate details
• Incident Response: Redacted incident report, tabletop exercise results
• Business Continuity: BCP test results, RTO/RPO commitments

Industry-Specific Applications

Financial Services

FFIEC guidance requires "ongoing monitoring" of critical vendors. Your charter should specify:

• Concentration risk thresholds (no vendor >15% of operational risk)
• Financial viability assessments for vendors >$500K
• Regulatory exam readiness documentation

Healthcare

HIPAA Business Associate management requires:

• BAA execution tracking and annual review
• PHI data flow mapping for each vendor
• Breach notification procedures within 60-day window

Technology/SaaS

Focus on API security and data portability:

• OAuth scope documentation requirements
• Data export format specifications
• Multi-tenancy isolation evidence

Implementation Best Practices

1. Get Executive Sponsorship First: Your charter needs CISO or CRO signature. Without it, business units will claim exceptions.

2. Start with Vendor Inventory: You can't manage what you don't track. Mandate procurement integration before charter rollout.

3. Build in Automation Triggers: Define which events trigger automated workflows:

   • New vendor onboarding → Auto-send tier-appropriate DDQ
   • Contract renewal → Reassessment notification
   • Security incident → Immediate control validation

4. Create Exception Workflows: Document how teams request and justify control exceptions. Require compensating controls and expiration dates.

5. Establish KPI Baselines: Measure current state before charter implementation:

   • Average assessment completion time
   • Percentage of vendors risk-tiered
   • Open finding remediation rate

Common Implementation Mistakes

Mistake 1: Over-Engineering Risk Tiers Teams create 5-7 vendor tiers with minor differences. Stick to 3-4 maximum. Each tier must have clearly different assessment and monitoring requirements.

Mistake 2: Ignoring Resource Reality Declaring quarterly assessments for 500 vendors when you have two analysts isn't a strategy. Size requirements to actual capacity or secure automation budget.

Mistake 3: Generic Control Requirements Mandating "industry best practices" without specifics creates interpretation conflicts. Define exact evidence requirements: "AES-256 encryption at rest" not "appropriate encryption."

Mistake 4: No Sunset Provisions Vendors stick around forever without review. Build in automatic triggers: vendors unused for 12 months move to termination queue.

Mistake 5: Weak Enforcement Mechanisms Charter states "must complete assessment" but procurement still processes contracts without TPRM approval. Build system blocks: no PO generation without risk tier assignment.

Frequently Asked Questions

How long should a TPRM charter be?

Keep it under 20 pages. Executive summary (1 page), core sections (10-12 pages), appendices for detailed procedures. Longer charters don't get read or updated.

Who needs to approve the TPRM charter?

Minimum: CISO/CRO, Head of Procurement, General Counsel, and CFO (for budget implications). Consider board risk committee endorsement for critical industry regulations.

How often should we update our TPRM charter?

Annual review minimum, with triggered updates for major regulatory changes, M&A activity, or significant vendor incidents. Track minor updates in version control without full re-approval.

Should our charter include specific vendor names?

No. Reference vendor categories and risk tiers, not specific suppliers. Vendor lists change too frequently and would require constant charter amendments.

How do we handle vendors that span multiple risk tiers?

Assess at the highest applicable tier. A payroll provider (moderate tier) that also handles equity vesting (critical due to SOX) gets critical tier treatment.

Can we use generic templates from consulting firms?

Start with templates but customize heavily. Generic charters fail because they don't reflect your actual vendor population, control environment, or resource constraints.

How do we enforce charter requirements for existing vendors?

Phase implementation by risk tier. Critical vendors get 90 days for compliance, moderate get 180 days, low tier get 12 months. Document grace period in charter.