Quick answer
A vendor due diligence questionnaire should include service scope, risk tier, data access, security evidence, privacy controls, business continuity, incident notification, subcontractors, financial condition, AI use, compliance obligations, and approval conditions.
Guide vs. template
This guide explains what belongs in the template. The paid template gives you the editable working files so you are not rebuilding from a blank page.
Paid template includes
- ✓ Vendor risk tiering methodology
- ✓ Due diligence questionnaire
- ✓ Vendor risk scorecard
- ✓ Contract risk review checklist
What is this template for?
A third-party risk questionnaire is the evidence collection tool used to decide whether a vendor can safely support your business. A good questionnaire is risk-tiered: critical vendors get deeper questions about security, business continuity, subcontractors, AI, data, financial condition, and regulatory exposure; low-risk vendors get a lighter review.
Who needs this
- ✓ You are onboarding a new vendor that touches customer data, payments, operations, compliance, or core infrastructure.
- ✓ A bank partner or examiner asked how you assess critical vendors.
- ✓ Your vendor review process is the same for every vendor and creates too much noise.
- ✓ You need to document why a vendor was approved, conditionally approved, or rejected.
Required template fields
If you only build one section first, start with these fields. They give buyers, auditors, and reviewers a concrete checklist of what belongs in the template.
Want the working version? Download the editable template instead of rebuilding these fields from scratch.
Buy $69 →| Field | Why it matters | Example |
|---|---|---|
| Vendor service description | Defines what you are actually relying on. | KYC verification API used during customer onboarding |
| Risk tier | Determines depth of due diligence. | Critical — customer onboarding would stop if unavailable |
| Data access | Drives privacy, security, and breach-notification review. | Name, DOB, SSN last four, transaction metadata |
| Security evidence | Supports security control reliance. | SOC 2 Type II, penetration test summary, vulnerability management policy |
| Business continuity / resilience | Shows whether the vendor can keep operating during disruption. | RTO/RPO, DR test date, incident notification SLA |
| Subcontractors | Finds hidden fourth-party concentration. | Cloud provider, data processor, offshore support vendor |
| AI or automated decisioning use | Flags explainability, bias, data, and monitoring questions. | Vendor uses ML to score fraud alerts or identity confidence |
| Approval conditions | Makes conditional approvals auditable. | Approved subject to annual SOC review and 24-hour incident notice |
Example vendor questionnaire tiering
Critical vendor
Core payment processor with customer data access and 24/7 operational dependency.
Evidence required
SOC 2 Type II, penetration test summary, DR test results, incident SLA, subcontractor list, financial review.
Approval condition
Approved subject to annual SOC refresh, 24-hour incident notice, and exit plan review.
Implementation roadmap
Tier vendors before sending the questionnaire
Owner: Third-party risk or procurement lead
Output: Critical/high/medium/low tier with rationale
Send only the sections that match the tier
Owner: Vendor owner
Output: Right-sized questionnaire instead of one giant form for everyone
Review evidence, not just yes/no answers
Owner: Security, compliance, legal, and business reviewers
Output: Evidence-backed approval memo
Document residual risk and conditions
Owner: Vendor owner + risk reviewer
Output: Conditional approval, remediation items, or rejection rationale
Set ongoing monitoring cadence
Owner: Third-party risk owner
Output: Annual review, SOC refresh, SLA monitoring, incident escalation path
Ready to use it?
Download the Third-Party Risk Management (TPRM) Kit
Use the guide to understand the structure, or buy the editable template to move faster.
FAQ
What should a vendor due diligence questionnaire include? ⌄
It should cover service scope, data access, security controls, privacy, business continuity, incident notification, subcontractors, financial condition, compliance obligations, AI use, and approval conditions.
Should every vendor complete the same questionnaire? ⌄
No. Use risk tiering. Critical and high-risk vendors need deeper evidence; low-risk vendors should not get the same exhaustive questionnaire as a core processor or customer-data vendor.
What is the difference between third-party risk and vendor management? ⌄
Vendor management handles contracts, performance, and relationship operations. Third-party risk focuses on the risks created by relying on that vendor and the controls needed to manage those risks.