Bank vendor risk assessment template

Request SOC reports, security certifications (ISO 27001, PCI DSS), business continuity plans, financial statements, insurance coverage details, regulatory compliance attestations, and data handling policies. For critical vendors, also request penetration testing results and information about their own vendor management practices.

Evaluate vendors based on the criticality of services provided, access to sensitive data, regulatory implications, and financial impact if disrupted. You can use Lumiform to create a weighted scoring system that prioritizes factors most relevant to your institution, and ensure consistent application across all vendors for meaningful comparison.

Watch for vendors refusing to provide requested documentation, history of security breaches without remediation plans, financial instability, and lack of compliance certifications. Inadequate business continuity planning and poor references from other financial institutions are also warning signs. These often indicate deeper operational issues.

First, document specific deficiencies and communicate concerns to the vendor with clear remediation expectations and deadlines. For critical vendors, develop contingency plans while monitoring improvement progress. If issues remain unresolved, consider contract renegotiation or begin transition planning to alternative providers to protect your institution.