Comprehensive Third-Party Risk Assessment Questionnaire
A Practical Blueprint for Securing Your Vendor Relationships
THIRD-PARTY RISK MANAGEMENT
In my previous blog post, we explored the importance of third-party risk management and how conducting thorough assessments can help protect your business from unexpected security, compliance, and operational risks. After diving into the "why," it’s time to get practical. As someone who’s deeply involved in the field of IT security and vendor management, I’ve realized that having a detailed, actionable third-party risk assessment questionnaire is essential for mitigating risks early.
Why am I so passionate about this? Simply put, third-party risks have the potential to jeopardize everything from data integrity to operational continuity. Whether you’re working with cloud providers, outsourcing your IT infrastructure, or even handling basic services like payroll, your vendors become a part of your organization’s security ecosystem. If their practices aren’t strong, your security weakens as well.
I’ve compiled this comprehensive questionnaire to serve as a blueprint for evaluating your vendors effectively. It’s designed to cover everything—from data security protocols and compliance checks to business continuity plans and incident response strategies. This isn’t just a checklist; it’s a roadmap to ensuring that your organization stays safe while working with third parties.
If you haven’t yet read my previous post on Why Third-Party Risk Management: Why is Critical for Your Business, I highly recommend giving it a read, as it sets the foundation for understanding the importance of the questions you’ll find below.
Essential Security and Compliance Checkpoints
Role and Responsibilities
1.1 Has your organization designated a specific individual to oversee security coordination? If so, who are they, and what is their role within the company?
1.2 Are the responsibilities for security management clearly outlined in official documents such as job descriptions or the information security policy?
External Parties
2.1 Does your organization collaborate with third parties (e.g., IT service providers) who have access to sensitive data?
2.2 Are Business Associate Agreements (BAAs) or Non-Disclosure Agreements (NDAs) established with these external parties?
2.3 If no agreements are in place, what security measures are implemented to monitor and evaluate third-party activity? Examples might include VPN connection logs or access audits.
Information Security Policy & Procedures
3.1 Does your organization have formalized and documented information security policies and procedures?
3.2 Do you follow a formal data classification process? Please explain how sensitive information is categorized (e.g., Confidential, Internal, Public, etc.).
3.3 Have acceptable use policies for organizational assets (such as data, computers, and communications equipment) been defined?
3.4 Is there a structured process for updating security policies and handling exceptions or deviations?
Risk Assessment
4.1 Does your organization follow a risk management process that identifies potential risks, implements controls to mitigate them, and assesses how remaining risks are accepted or transferred (e.g., through insurance)?
Compliance with Legal Requirements & Data Protection
5.1 Are there processes in place to ensure compliance with legal and regulatory requirements relevant to IT security (e.g., data protection laws)?
5.2 Where is your organization’s data physically stored (e.g., country/region)?
5.3 Is data replicated to a secondary location for disaster recovery purposes?
5.4 Is the storage of personal data compliant with GDPR regulations?
5.5 Is sensitive data encrypted while at rest and during transmission using appropriate encryption standards?
Employee Training, Education, and Awareness
6.1 Are employees given formal training in information security practices?
6.2 How are security policies communicated to staff?
6.3 Are employees regularly reminded of security best practices (e.g., through orientation sessions, annual training, or email reminders)?
Background Checks
7.1 Does your organization conduct background checks for employees and contractors, especially for sensitive roles? Are follow-up checks done periodically?
Terms and Conditions of Employment
8.1 Are employees required to sign confidentiality or non-disclosure agreements when they join the organization?
Employee Termination or Transfer
9.1 Is there a formal process in place to manage the termination or role change of employees, such as returning equipment, disabling access, or reviewing existing access rights?
Physical Security Controls
10.1 What methods are in place to control physical access to your facilities (e.g., locked doors, key cards, or fobs)?
10.2 Are measures in place to reduce dependency on key personnel for critical access?
10.3 How is physical access authorized, and are there audits for access control processes?
10.4 Are there documented procedures for repairs or modifications to the physical security components of the facility?
10.5 How frequently are physical security audits conducted?
Application and Information Access Control
11.1 Have your IT providers explained how your sensitive data systems are secured?
11.2 Are systems logically or physically segregated based on their function?
11.3 Are systems that handle sensitive data separated from others?
11.4 Are both internal and external networks protected? If so, how (e.g., firewalls, intrusion prevention systems, or access controls)?
Encryption for Sensitive Data Transfers
12.1 Is sensitive data transferred to external recipients?
12.2 How is data securely transferred (e.g., via VPN, encrypted email, or USB)?
12.3 Are encryption controls in place to safeguard sensitive data during transfer?
12.4 Are your internet-facing websites secured with SSL encryption, and what versions of TLS are supported?
Vulnerability Assessment and Remediation
13.1 How often does your organization perform vulnerability scans on systems, networks, and security tools?
13.2 What is the timeline for addressing vulnerabilities identified through patch management?
13.3 What security improvements have been implemented over the past year?
Monitoring
14.1 Are third-party network connections monitored to ensure authorized access and appropriate use?
Identity & Access Management
15.1 Does your organization follow an access authorization process that grants employees minimal access rights based on their roles and responsibilities?
15.2 How are systems configured to ensure that only authorized individuals can access them?
15.3 Do you enforce policies on password length, complexity, history, lockouts, and mandatory changes?
15.4 Is there a list of users with administrative or elevated privileges?
15.5 Is there a Bring Your Own Device (BYOD) policy, and are employees required to follow it?
User Identification
16.1 Are user IDs uniquely identifiable in your systems?
16.2 Are there any shared accounts used under specific circumstances (e.g., for emergencies)?
Entitlement Reviews
17.1 Does your organization conduct regular reviews of user accounts and access permissions?
Antivirus Software
18.1 Is centrally managed antivirus software deployed across your organization’s workstations and systems?
Network Defense and Intrusion Prevention
19.1 Do you use host-based intrusion prevention systems, next-gen firewalls, or web application firewalls for critical systems?
Security Monitoring
20.1 Are your systems and networks actively monitored for security events (e.g., server and network logs, monitoring of routers, wireless access points, etc.)?
Media Handling
21.1 Are there procedures in place to protect physical media (e.g., tapes, disks, etc.) from unauthorized access or destruction?
21.2 Is sensitive data stored on devices such as laptops, desktops, or backup tapes encrypted?
Secure Disposal
22.1 Are there security procedures for securely decommissioning IT equipment that contains sensitive information?
Segregation of Computing Environments
23.1 Are development, test, and production environments kept separate from the operational IT environment?
Segregation of Duties
24.1 Are duties separated to reduce the risk of unauthorized access or misuse of IT systems?
Change Management
25.1 Are there formal change management procedures in place for systems, software, and networks, including patch management?
Incident Response
26.1 How does your organization detect and respond to security incidents?
26.2 Are proper procedures followed during investigations to maintain evidence integrity?
26.3 Are incidents handled according to legal requirements?
26.4 How are incidents communicated to relevant stakeholders?
Disaster Recovery & Backup Plans
27.1 Do you have a backup mechanism for critical systems and data?
27.2 Have you ever had to restore data after a systems outage?
27.3 Is there a disaster recovery plan in place?
27.4 Are disaster recovery plans regularly updated and tested?
Product Security Development
28.1 Do you follow secure development practices like threat modeling or penetration testing before releasing products?
Key Management
29.1 Is there a centralized infrastructure in place to manage cryptographic keys?
Federated Identity Management
30.1 Does your organization support single sign-on (SSO) or federated identity solutions like SAML or OAuth?
Development Practices
31.1 Do your development teams follow secure coding practices, such as those outlined in the OWASP Top 10?
31.2 Are developers trained in securing against web-based threats like SQL injection or XSS?
Security Accreditations
32.1 Does your organization hold security certifications like ISO 27001 or Cyber Essentials Plus?
32.2 Do you require your third-party vendors to have security accreditations?
Contact Information
33.1 Who should be contacted in case of a security breach or issue affecting your product?
Service Level Agreements (SLA)
34.1 What is your agreed response time to security incidents or changes?
Additional Security Measures
35.1 Are there any additional security measures in place that are not covered by this questionnaire?
Conclusion
Risk management is no longer a luxury—it’s a necessity, especially in today’s interconnected business landscape. This comprehensive questionnaire is meant to empower you to take control of your vendor relationships, ensuring that third parties align with your security and compliance standards.
I’ve crafted this tool based on my own experiences and research in the field of IT security, and I’m confident it will help you avoid potential pitfalls and strengthen your organization’s defenses. Remember, the goal isn’t just to find vulnerabilities but to prevent them from ever becoming a problem.
If you’re ever in need of further advice or guidance on implementing these assessments, don’t hesitate to reach out! Your risk management strategy can only get stronger from here.