Vendor risk assessment
A vendor risk assessment is the process of evaluating third-party vendors to identify, measure, and manage potential risks that could affect an organization’s security, compliance, or business continuity.
What is a vendor risk assessment?
A vendor risk assessment is a structured evaluation used to determine whether a third-party vendor meets an organization’s security, privacy, and compliance standards. It involves gathering information about the vendor’s controls, certifications, and processes to identify potential weaknesses or gaps.
Vendor risk assessments are a key part of third-party risk management (TPRM), which ensures that external partners align with organizational policies and regulatory obligations.
Assessments may include reviewing data protection practices, incident response plans, and adherence to frameworks such as the General Data Protection Regulation (GDPR) and the Digital Operational Resilience Act (DORA).
Why vendor risk assessments matter?
Vendors often have access to sensitive systems and data, which can create security, privacy, or operational vulnerabilities. Performing vendor risk assessments helps organizations proactively identify and mitigate these risks before they lead to breaches or compliance violations.
They also help demonstrate accountability and compliance with regulatory frameworks such as the General Data Protection Regulation (GDPR), the Digital Operational Resilience Act (DORA), and ISO/IEC 27001.
Regular assessments allow businesses to maintain a consistent understanding of vendor risk posture across their ecosystem, ensuring better decision-making and resilience.
How vendor risk assessments are used in practice
- Collecting and reviewing security questionnaires and compliance certifications from vendors
- Evaluating vendors’ data protection, privacy, and operational controls
- Identifying high-risk vendors based on data access and system integration levels
- Assigning and tracking remediation actions for vendors with identified risks
- Integrating assessments into third-party risk management (TPRM) and tech risk management programs
- Conducting reassessments periodically or after significant changes in vendor relationships
Related laws & standards
- General Data Protection Regulation (GDPR)
- Digital Operational Resilience Act (DORA)
- ISO/IEC 27001 (Information Security Management)
- NIST Cybersecurity Framework
How OneTrust helps with vendor risk assessments
OneTrust streamlines vendor risk assessments by automating questionnaires, collecting evidence, and providing a unified view of third-party risk. The platform supports continuous monitoring, remediation workflows, and compliance alignment across privacy, security, and resilience frameworks.
Explore Solutions →
FAQs about vendor risk assessments
A vendor risk assessment focuses specifically on individual vendors, while third-party risk assessments cover a broader ecosystem that may include suppliers, partners, and contractors.
Organizations should perform vendor risk assessments before onboarding and at regular intervals—typically annually or whenever a vendor’s risk profile changes.
Vendor risk assessments are typically managed by security, procurement, compliance, and risk management teams, often supported by a centralized GRC function.
