Vendor Performance Review Template

Your vendor performance reviews are consuming weeks of manual effort per quarter. Between chasing down evidence, mapping controls across multiple frameworks, and generating reports for different stakeholder groups, you're spending more time on process than actual risk analysis.

A properly structured vendor performance review template transforms this chaos into a repeatable, auditable process. The right template doesn't just track SLA adherence—it creates a comprehensive view of vendor risk posture, control effectiveness, and compliance gaps that directly feeds your risk register and remediation workflows.

This guide provides field-tested templates that integrate performance metrics with your existing DDQ responses, continuous monitoring data, and incident history. You'll get specific scorecards for different vendor categories, evidence collection checklists mapped to regulatory requirements, and automated reporting formats that satisfy both executive leadership and audit committees.

Core Components of an Effective Vendor Performance Review Template

1. Vendor Profile and Context Section

Start with baseline vendor information that provides context for all performance metrics:

Field	Purpose	Example Data Points
Vendor Tier	Determines review frequency and depth	Critical/High/Medium/Low based on inherent risk score
Service Categories	Maps to specific control requirements	Data processing, infrastructure, professional services
Regulatory Scope	Defines applicable compliance frameworks	GDPR Article 28 processor, HIPAA BAA, PCI DSP Level 1
Contract Details	Links performance to contractual obligations	SLAs, security requirements, audit rights

2. Performance Metrics Dashboard

Structure your KPIs into three categories that align with TPRM program objectives:

Operational Performance

• Service availability (target: 99.9% for critical vendors)
• Incident response times vs. SLA requirements
• Change management compliance rates
• Capacity utilization trends

Security and Compliance Performance

• Vulnerability remediation velocity
• Security incident frequency and severity
• Compliance attestation currency (SOC reports, ISO certificates)
• Control testing pass rates

Business Relationship Metrics

• Invoice accuracy and dispute rates
• Contract compliance scores
• Innovation contributions
• Stakeholder satisfaction ratings

3. Control Effectiveness Mapping

Your template must connect vendor performance to specific control requirements:

Control ID: ISO-27001-A.15.1.2
Control Description: Addressing security within supplier agreements
Vendor Implementation: [Evidence reference]
Testing Method: Annual contract review + quarterly attestation
Current Status: Effective/Partially Effective/Ineffective
Remediation Required: Yes/No
Due Date: [If applicable]

4. Evidence Collection Framework

Structure evidence requirements to minimize back-and-forth with vendors:

Quarterly Evidence Package

• Updated SOC 2 Type II report (last 12 months)
• Vulnerability scan summaries
• Incident reports affecting your organization
• SLA performance reports
• Insurance certificate renewals

Annual Evidence Requirements

• Full security assessment questionnaire update
• Penetration testing executive summary
• Business continuity test results
• Financial viability indicators
• Subcontractor/4th party updates

Industry-Specific Applications

Financial Services Implementation

Financial institutions must align vendor reviews with regulatory expectations:

OCC Bulletin 2013-29 Requirements

• Document ongoing monitoring activities
• Risk-based review frequency (minimum annual for critical)
• Board-reportable metrics on high-risk vendors
• Integration with enterprise risk appetite statements

Template Modifications for Banking

• Add FFIEC Cybersecurity Assessment Tool mapping
• Include concentration risk calculations
• Track resolution/recovery planning status
• Monitor interconnectedness with other critical vendors

Healthcare Sector Adaptations

Healthcare organizations need HIPAA-specific review elements:

Required Components

• PHI access and volume metrics
• Breach notification history
• Workforce training compliance rates
• Encryption status for data at rest/in transit
• Business Associate Agreement compliance scoring

Technology Company Requirements

Tech companies often need more granular technical metrics:

API/Integration Performance

• Latency percentiles (p50, p95, p99)
• Error rates by endpoint
• Rate limiting compliance
• API versioning and deprecation notices

Development Practice Reviews

• SDLC maturity assessments
• Code review coverage percentages
• Dependency management practices
• Security champion program participation

Compliance Framework Alignment

SOC 2 Trust Services Criteria Mapping

Your review template should explicitly reference TSC requirements:

CC9.2 - Vendor and Business Partner Risk Assessment

• Initial and periodic risk assessments documented
• Changes in vendor risk profile tracked
• Performance against criteria measured

Sample Review Section:

TSC Reference: CC9.2
Review Period: Q3 2024
Performance Metrics:
- Risk assessment currency: 100% (12/12 vendors)
- Material changes identified: 2
- Remediation plans established: 2/2
Evidence: [Quarterly assessment reports, change logs]

ISO 27001:2022 Supplier Relationship Requirements

Map reviews to specific ISO control objectives:

A.5.19 - Information security in supplier relationships

• Supplier security policies reviewed
• Incident reporting procedures tested
• Access rights validated quarterly

A.5.21 - Managing information security in the ICT supply chain

• Supply chain risk assessments current
• Subcontractor visibility maintained
• Concentration risks evaluated

GDPR Article 28 Processor Obligations

For data processors, include specific GDPR performance indicators:

• Data subject request handling times
• Breach notification speed (target: <72 hours)
• Sub-processor approval compliance
• Data deletion verification processes

Implementation Best Practices

1. Establish Clear Review Cycles

Align review frequency with vendor criticality:

• Critical vendors: Quarterly comprehensive reviews
• High-risk vendors: Semi-annual reviews with quarterly check-ins
• Medium-risk vendors: Annual reviews with exception reporting
• Low-risk vendors: Annual certification updates

2. Automate Evidence Collection

Reduce manual effort through systematic approaches:

• Use shared repositories for recurring documents
• Implement API integrations for performance data
• Create vendor self-service portals for uploads
• Set automated reminders for evidence updates

3. Standardize Scoring Methodologies

Develop consistent scoring that enables trending:

Performance Score = (Operational Weight × Op Score) + 
                   (Security Weight × Sec Score) + 
                   (Compliance Weight × Comp Score)

Where weights reflect vendor criticality and service type

4. Create Actionable Outputs

Transform review data into clear next steps:

• Executive dashboards highlighting top risks
• Vendor-specific improvement plans with deadlines
• Procurement team alerts for contract negotiations
• Audit-ready documentation packages

Common Implementation Mistakes

1. Over-Engineering the Template

Problem: Creating 50+ page review documents that never get completed Solution: Start with essential metrics, expand based on actual use

2. Ignoring Vendor Burden

Problem: Requesting duplicate evidence across multiple reviews Solution: Maintain evidence libraries and only request updates

3. Focusing Only on Compliance

Problem: Missing operational and strategic performance indicators Solution: Balance compliance requirements with business value metrics

4. Static Review Processes

Problem: Using the same template regardless of vendor changes Solution: Adjust review depth based on performance trends and risk changes

5. Poor Stakeholder Communication

Problem: Review results stay within TPRM team Solution: Create role-specific reports for different audiences

Frequently Asked Questions

How often should I update my vendor performance review template?

Review the template structure annually, but update specific metrics quarterly based on emerging risks and regulatory changes. Major framework updates (like ISO 27001:2022) require comprehensive template reviews.

What's the optimal length for a vendor performance review?

Critical vendors warrant 10-15 pages including evidence summaries. High-risk vendors need 5-8 pages. Medium and low-risk vendors can use 2-3 page scorecards focusing on exceptions and changes.

How do I handle vendors who refuse to provide requested evidence?

Document the refusal, escalate through contract provisions, and adjust risk ratings accordingly. Include "evidence not provided" as a specific risk indicator in your scoring methodology.

Should performance reviews include pricing and commercial terms?

Yes, but in a separate section. Track cost trends, benchmark against market rates, and identify value optimization opportunities. Link this to renewal planning and negotiation strategies.

How can I make performance reviews less painful for vendors?

Implement a vendor portal for evidence uploads, provide clear review schedules at contract signing, use consistent formats across review cycles, and share positive performance feedback along with improvement areas.

What's the best way to track remediation items from performance reviews?

Use a centralized risk register with vendor-specific entries. Assign clear owners, set enforceable deadlines, and link remediation status to ongoing risk ratings and future contract decisions.