[Blog](/blog) Show links Resources [Blog](/blog) [Breaches](/breaches) [eBooks, reports, & more](/resources) [Events](/events) [News](/news) [Third-Party Risk Management](/category/third-party-risk-management) Show links Categories [Attack Surface Management](/category/attack-surface-management) [Company News](/category/company-news) [Compliance and Regulations](/category/compliance-and-regulations) [Cybersecurity](/category/cybersecurity) [Data Breaches](/category/data-breaches) [DevOps](/category/devops) [Human Cyber Risk](/category/human-cyber-risk) [Risks and Vulnerabilities](/category/risks-and-vulnerabilities) [Third-Party Risk Management](/category/third-party-risk-management) [Vendor Risk Management](/category/vendor-risk-management) [Third-Party Risk Assessment Best Practices in 2026](/blog/third-party-risk-assessment-best-practices) Publish date January 5, 2026 {x} minute read # Third-Party Risk Assessment Best Practices in 2026 [Get a demo](/contact-sales) [Free trial](/demo) [Download the PDF guide](/resources/whitepaper-the-ultimate-guide-to-cybersecurity-vendor-risk-assessments) [Free trial](/demo) Written by [Abi Tyas Tunggal](/team/abi-tyas-tunggal) Writer and Senior Product Manager at UpGuard. Abi's work has influenced leaders across cybersecurity, technology, and financial services. Reviewed by [Kaushik Sen](/team/kaushik-sen) Chief Marketing Officer Kaushik has a background in software engineering, enterprise solution architecture, and data analytics. He brings a unique, data-driven perspective to cybersecurity education. Table of contents Whitepaper Whitepaper: The Ultimate Guide to Cybersecurity Vendor Risk Assessments Free resource ### Whitepaper: The Ultimate Guide to Cybersecurity Vendor Risk Assessments [Download now](/resources/whitepaper-the-ultimate-guide-to-cybersecurity-vendor-risk-assessments) Assessing the [cybersecurity risk](https://www.upguard.com/blog/cybersecurity-risk) posed by [third-party vendors and service providers](https://www.upguard.com/blog/third-party-vendor) is time-consuming, operationally complex, and often riddled with errors. You need to keep track of requests you send out, chase up vendors who haven't answered, and ensure that when they do they answer in a timely and accurate manner. Along with [vendor risk assessment questionnaires](https://www.upguard.com/blog/vendor-risk-assessment-questionnaire-template), organizations need a standardized information gathering process that accurately assesses the external [security posture](https://www.upguard.com/blog/security-posture) of vendors against industry standards, security policies, and established security practices. Any robust third-party risk management program must have established processes and guidelines that include the process of onboarding vendors, gathering data, reviewing answers, and requesting remediation. The good news is that there is software that can streamline the process. [UpGuard Vendor Risk](https://www.upguard.com/product/vendorrisk) can help you monitor your vendors' [external security posture](https://www.upguard.com/blog/security-posture) in real-time, automate security assessments, and prioritize and remediate risks. Without a clear assessment process, [CISOs](https://www.upguard.com/blog/what-is-a-ciso) and [vendor risk management](https://www.upguard.com/blog/vendor-risk-management) teams become burdened with constant emails and multiple spreadsheets that are used to collect, analyze, and remediate issues across the supply chain. And as you know, when teams become overrun in operational complexity, due diligence falls to the wayside, high-risk vendors are ignored, and the effectiveness of your security program is diminished. To assist you in developing your [third-party assessment](https://www.upguard.com/blog/what-is-a-third-party-risk-assessment) processes, we've put together a list of five best practices for conducting [third-party risk assessment](https://www.upguard.com/blog/what-is-the-digital-operational-resilience-act) questionnaires and vendor management. [Learn how UpGuard simplifies Vendor Risk Management >](https://www.upguard.com/product/vendorrisk) ## Understand Your Third-Party Vendor Portfolio Before you can start sending vendor assessments, you need to have an accurate inventory of all your third-party relationships. Without one, it's near impossible to accurately measure the level of cyber risk your vendors introduce. It's important to understand that security incidents involving vendors can lead to [significant data breaches](https://www.upguard.com/blog/biggest-data-breaches), even if they don't handle [sensitive data](https://www.upguard.com/blog/sensitive-data). As we saw with Target, even a non-technical vendor like an [HVAC provider can lead to the exposure of more than 110 million consumers' credit card](https://krebsonsecurity.com/2014/02/target-hackers-broke-in-via-hvac-company/) and [personal data](https://www.upguard.com/blog/personally-identifiable-information-pii). Keep in mind, vendors don't necessarily have to have the same [information security measures](https://www.upguard.com/blog/information-security) in place as you do. You just need to be comfortable that they have adequate [data security](https://www.upguard.com/blog/data-security) and data protection controls in place. [Download your vendor risk assessment template >](https://www.upguard.com/resources/vendor-risk-assessment-template) A good starting point is to invest in an automated security monitoring tool, like [UpGuard Vendor Risk](https://www.upguard.com/product/vendorrisk), which can keep track of and continuously monitor your third and [fourth-party vendors'](https://www.upguard.com/blog/what-is-fourth-party-risk) critical security controls. These tools can not only help you communicate with vendors, but they can also help scale your [Vendor Risk Management](https://www.upguard.com/blog/vendor-risk-management) program by helping you determine which vendors pose the most risk via automated, always up-to-date [security ratings](https://www.upguard.com/blog/what-are-security-ratings). [Learn how to reduce the impact of third-party breaches.](https://www.upguard.com/blog/reducing-the-impact-of-third-party-breaches) ## Find a Vendor Questionnaire Template That Works For You Once you have an inventory of your vendors, you need to decide on the type of vendor risk management questionnaire you'll use. This could be one of the [top vendor assessment questionnaires](https://www.upguard.com/blog/top-vendor-assessment-questionnaires) or a custom one. Standardized questionnaires are great if you need to comply with regulations like GDPR, LGPD, CCPA, etc, or specific industry trends such as [ISO 27001](https://www.upguard.com/blog/what-is-iso-27001) and NIST SP 800-171. However, [some organizations need deeper TPRM insights](https://www.upguard.com/blog/what-is-vendor-tiering) and develop custom questionnaires. The issue with custom questionnaires is they can be tricky to get completed as vendors often want to leverage past questionnaires to answer questionnaires. Regardless of what questionnaire you use, you should be aware that vendors have to fill out questionnaires a lot. Think about investing in a tool that makes it easy for vendors to manage their responses. If you're not sure where to start, popular [vendor risk assessment templates](https://www.upguard.com/blog/vendor-risk-assessment-questionnaire-template) include: * **CIS Critical Security Controls (CIS First 5 / CIS Top 20): **[The CIS Controls for Effective Cyber Defense](https://www.upguard.com/blog/cis-controls) is a prioritized set of actions that form a [defense-in-depth](https://www.upguard.com/blog/defense-in-depth) set of specific and actionable best practices to mitigate the most common [cyber attacks](https://www.upguard.com/blog/cybersecurity-risk). The CIS Controls map to many major compliance frameworks such as the [NIST Cybersecurity Framework](https://www.upguard.com/blog/nist-cybersecurity-framework), [NIST 800-53](https://www.upguard.com/blog/nist-sp-800-53), ISO 27000 series, and regulations such as PCI-DSS, HIPAA, NERC CIP, and [FISMA](https://www.upguard.com/blog/fisma). * **Consensus Assessments Initiative Questionnaire (CAIQ): **[The Consensus Assessments Initiative Questionnaire (CAIQ)](https://www.upguard.com/blog/caiq) is a security assessment provided by the Cloud Security Alliance (CSA), a leading organization dedicated to defining and raising awareness of secure cloud computing best practices. The CAIQ helps cloud consumers and auditors assess the [information security](https://www.upguard.com/blog/information-security) capabilities of data centers and cloud providers. * **Higher Education Community Vendor Assessment Tool (HECVAT / HECVAT Lite): **The Higher Education Community Vendor Assessment Tool (HECVAT) is a security assessment template that generalizes higher education information security and data protection questions, as well as issues regarding cloud services for consistency and ease of use.\ \ [Learn how to comply with HECVAT >](https://www.upguard.com/blog/how-to-comply-with-hecvat)\ ‍ * **ISO 27001 Questionnaire:** ISO/IEC 27001 is one of the most well-known and well-used information security standards and is part of the ISO/IEC 27000 family of standards. It is published by the [International Organization for Standardization (ISO)](https://www.upguard.com/blog/iso-third-party-risk-management-requirements) and the International Electrotechnical Commission (IEC). * **NIST SP 800–171:**[NIST Special Publication 800-171, Protecting Controlled Unclassified Information in Nonfederal Systems and Organizations (NIST SP 800-171)](https://www.upguard.com/blog/nist-sp-800-171) provides federal agencies with a set of guidelines designed to ensure that Controlled Unclassified Information (CUI) remains [confidential, available, and unchanged](https://www.upguard.com/blog/cia-triad) in nonfederal systems and organizations. By complying with NIST SP 800-171, you will also meet the majority of the criteria for [NIST SP 800-53](https://www.upguard.com/blog/nist-sp-800-53), and compliance with NIST SP 800-53 is a major part of [FISMA](https://www.upguard.com/blog/fisma) and [FedRAMP](https://www.fedramp.gov/) compliance. * **Standardized Information Gathering Questionnaire (SIG / SIG-Lite):** The Standardized Information Gathering (SIG) questionnaire is used to perform an initial assessment of vendors, gathering information to determine how security risks are managed across 18 different risk domains.SIG was developed by Shared Assessments and is a holistic tool for risk management assessments of [cybersecurity](https://www.upguard.com/blog/cyber-security), IT, privacy, [data security](https://www.upguard.com/blog/data-security), and business continuity. * **VSA Questionnaire (VSA):** The Vendor Security Alliance (VSA) questionnaire was created by a coalition of companies committed to improving Internet security. Unlike other questionnaires, the VSA assessment process was created with the vendor in mind. Its focus is to eliminate irrelevant questions, reducing the time it takes for InfoSec and security teams to complete the questionnaire. * **Payment Card Industry Data Security Standards (PCI DSS) Questionnaire: **The Payment Card Industry Data Security Standards (PCI-DSS) is an [information security](https://www.upguard.com/blog/information-security) and [data security](https://www.upguard.com/blog/data-security) standard for organizations that handle branded credit cards from the major card schemes. [Read our full guide on the top vendor assessment questionnaires >](https://www.upguard.com/blog/top-vendor-assessment-questionnaires#nist) Watch this video to learn how UpGuard streamlines risk assessment workflows. [Take a tour of UpGuard's risk assessment features >](https://upguard.navattic.com/6623ios?ref=blog) ## Keep Track of What You Send Out In the past, it was easy for questionnaires to get lost in the back-and-forth volley between inboxes or simply misplace completed Excel files. That's why it's important to develop a centralized system where you can continuously monitor and review the progress vendors are making on questionnaires. Good vendor risk management software will provide vendors with a simple way to get in contact with your team about any concerns, as well as to provide additional evidence or proof of their security controls. In addition, we recommend setting a clear deadline and an automated follow-up so that you and the vendor know exactly what to expect and when. [Learn how to communicate third-party risk to stakeholders >](https://www.upguard.com/blog/how-to-communicate-third-party-risk-to-the-board) ## Use Technology to Streamline Processes Risk assessment questionnaires aren't new. You've likely been sending out questionnaires by email and managing multiple Excel spreadsheets to check for answers. However, technology like [UpGuard Vendor Risk](https://www.upguard.com/product/vendorrisk) can help you scale up your processes by allowing computers to keep track of things for you. A good tool will give you and your third-party vendors: * A way to provide answers, evidence, and ask any questions they may have in a centralized environment * A way to delegate answers to new people in the organization, so the correct person can answer each question. * Means of ongoing monitoring (or continuous monitoring) of all levels of risk, during due diligence processes and beyond. * A way to remediate and discuss issues, review evidence, and ask for additional information or proof of specific questions, e.g. what access control policies do you have in place? > Your third-party risk management strategy must be capable of identifying potential risks of new vendors, prior to onboarding. Due diligence risk monitoring should be a primary metric in vendor risk management processes. The better the usability of the tool, the more time you can spend remediating risks with vendors rather than focusing on the nitty-gritty of data collection. To attain a level of third-party management that wins new partnerships, look for automation opportunities in areas of a risk management framework known for their inefficiencies and potentially negative impacts on service level agreements (SLAs). Disruptors like using Excel Spreadsheets for questionnaire management, operational risks, and overall poor vendor lifecycle management strain vendor relationships and call for negative attention from senior management. [Learn how to manage service provider risks >](https://www.upguard.com/blog/evaluating-managing-service-provider-security-risks) UpGuard includes many features designed to compress the risk assessment lifecycle, including AIEnhace - AI technology helping vendors produce clear and comprehensive responses from an input consisting of either a roughly written draft or bullet points. Watch the video below to learn how UpGuard addresses common vendor relationship frustrations. ## Trust But Verify Just because you've received a completed [security questionnaire](https://www.upguard.com/blog/security-questionnaire) doesn't mean your work is done. The next step is to verify risk profiles to validate that what they say is true. While you won't be able to do this for internal security controls, there are a bunch of externally-visible data points you verify.   UpGuard's automated scanning and [security ratings](https://www.upguard.com/blog/what-are-security-ratings) check for: * [Susceptibility to man-in-the-middle attacks](https://www.upguard.com/blog/man-in-the-middle-attack) * [Insecure SSL/TLS certificates](https://www.upguard.com/blog/ssl-certificate) * [SPF, DKIM, and DMARC settings](https://www.upguard.com/blog/email-security) * [HTTP Strict Transport Security (HSTS)](https://www.upguard.com/blog/hsts) * [Email spoofing and phishing risk](https://www.upguard.com/blog/email-spoofing) * [Vulnerabilities](https://www.upguard.com/blog/vulnerability) * [Malware susceptibility](https://www.upguard.com/blog/types-of-malware) * [Network security](https://www.upguard.com/blog/network-security) * Unnecessary open administration, database, app, email and file sharing ports * Exposure to known [data breaches](https://www.upguard.com/blog/data-breach) and [data leaks](https://www.upguard.com/blog/data-leak) * Vulnerable software * HTTP accessibility * Secure cookie configuration [Learn how to create a vendor risk assessment matrix >](https://www.upguard.com/blog/vendor-risk-management-assessment-matrix) Whitepaper Whitepaper: The Ultimate Guide to Cybersecurity Vendor Risk Assessments Free resource ### Whitepaper: The Ultimate Guide to Cybersecurity Vendor Risk Assessments [Download now](/resources/whitepaper-the-ultimate-guide-to-cybersecurity-vendor-risk-assessments) ## Related posts Learn more about the latest issues in cybersecurity. Third-Party Risk Management #### [The Evidence Is In: UpGuard Named a Leader in the IDC MarketScape for Worldwide Third-Party Risk Management](/blog/upguard-named-leader-in-idc-marketscape) UpGuard has been named a Leader in the IDC MarketScape: Worldwide Third-Party Risk Management Services 2026 Vendor Assessment. Find out why. [](/team/cassy-van-eeden) [Cassy van Eeden](#) October 18, 2026 Third-Party Risk Management #### [We Researched Four AI Evidence Analysis Tools for TPRM. Here’s What We Found.](/blog/ai-evidence-analysis-tools-for-tprm) We researched four AI evidence-parsing tools against four criteria that security teams often overlook. None nailed all four. [](/team/cassy-van-eeden) [Cassy van Eeden](#) September 29, 2026 Third-Party Risk Management #### [The Vendor Assurance Confidence Gap: Why It’s Widest With Your Most Critical Vendors](/blog/vendor-assurance-confidence-gap) Vendor assurance efforts are rising while confidence in them is falling. This gap is widest with the vendors that matter most. Here’s why. [](/team/cassy-van-eeden) [Cassy van Eeden](#) August 25, 2026 Third-Party Risk Management #### [Higher Education TPRM in 2026: New Research Maps the Vendor Visibility Gap](/blog/higher-education-tprm-2026) Explore UpGuard’s latest research into higher education third-party risk, including supplier concentration and systemic vendor exposure. [](/team/cassy-van-eeden) [Cassy van Eeden](#) August 10, 2026 Third-Party Risk Management #### [Ongoing TPRM Success: Continuous Security Monitoring with AI](/blog/continuous-security-monitoring-with-ai) Is manual work weighing down your security team and limiting your ability to scale? Learn how UpGuard and its AI features can help. [](/team/nicholas-sollitto) [Nicholas Sollitto](#) September 29, 2026 Third-Party Risk Management #### [Report Writing Solved: Generating Actionable Assessment Reports](/blog/report-writing-solved) Is manual report writing slowing down your security team? Learn how UpGuard’s AI can help. [](/team/nicholas-sollitto) [Nicholas Sollitto](#) April 2, 2025 [All posts](/blog) Experience superior visibility and a simpler approach to cyber risk management [Get a demo](/contact-sales) [Free trial](/demo)