Free Vendor Management Risk Assessment Template

Vendor management risk assessment template

This vendor management risk assessment template helps you identify and mitigate potential risks in your vendor relationships before they become costly problems. It tool goes beyond basic vendor evaluations by incorporating specific risk factors including criticality of services, complexity level, access to sensitive information, and potential business impact.

When a new financial service provider requires evaluation, for example, you can systematically assess their security controls, business continuity plans, and insurance coverage in one structured workflow. According to KPMG, almost 73% of organizations went through significant third-party disruptions within three years. This template provides the systematic approach you need to prevent your organization from becoming another statistic.

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Preview of the template

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General Information

Vendor Name

Vendor Type

Vendor Assessment

How long has the vendor been in business?

What is the vendor's financial stability?

Does the vendor have relevant industry experience?

Does the vendor have a good reputation in the market?

Risk Factors

What is the criticality of the services/products provided by the vendor?

What is the complexity of the vendor's services/products?

What is the vendor's level of access to sensitive information?

What is the potential impact of vendor failure on your organization?

Risk Mitigation

Does the vendor have adequate security controls in place?

Does the vendor have a business continuity plan?

Does the vendor have appropriate insurance coverage?

Are there any exit strategies in place if the relationship needs to be terminated?

Frequently asked questions

What documentation should vendors provide during a bank risk assessment?

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.

How can you determine the appropriate risk rating for each banking vendor?

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.

What red flags should you watch for when using a bank vendor risk assessment template?

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.

What steps should you take if a vendor scores poorly on the risk assessment?

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.

This template, developed by Lumiform employees, serves as a starting point for businesses using the Lumiform platform and is intended as a hypothetical example only. It does not replace professional advice. Companies should consult qualified professionals to assess the suitability and legality of using this template in their specific workplace or jurisdiction. Lumiform is not liable for any errors or omissions in this template or for any actions taken based on its content.