TPRM Checklist: What to Ask Every Vendor Before You Sign

Why Every Business Needs a TPRM Checklist

Even one insecure vendor can compromise your entire security posture. According to SecurityScorecard, 35.5% of all breaches in 2024 were third-party related. In other words, your organization’s weakest security link may not be inside your network — it may be hidden within your vendor ecosystem.

Properly vetting third parties before signing a contract isn’t just a compliance checkbox. It’s a critical safeguard for protecting your company, your data, and your customers from unmitigated risk.

Third-party relationships are critical to business growth. For example, running your business without a third-party customer relationship management (CRM) software, payment processor, or cloud service provider (CSP), could be virtually impossible. But with each third party — along with the “fourth parties” your vendors depend on — your attack surface expands.

This guide breaks down what Third-Party Risk Management (TPRM) really means, why it matters, and the key questions every buyer should ask before committing to a new vendor partnership.

What Is TPRM (Third-Party Risk Management)?

Third-Party Risk Management (TPRM) is the process of identifying, assessing, and managing the risks that external vendors, suppliers, or partners introduce to your organization’s operations, data, and reputation.

A robust TPRM program ensures that every vendor with access to your systems or sensitive data upholds security standards consistent with your own. It’s not just about compliance — it’s about resilience.

How the TPRM Process Works

A mature TPRM program follows a lifecycle approach, ensuring risk is managed continuously, not just at onboarding.

Step 1: Vendor Identification and Onboarding

Catalog all third parties your organization engages with, from SaaS platforms to consultants and payment processors.

Step 2: Risk Assessment and Due Diligence

Evaluate each vendor’s security posture, compliance certifications (e.g., SOC 2, ISO 27001, NIST), and data protection controls before granting access.

Step 3: Ongoing Monitoring and Review

Continuously track vendor performance, reassess risk as new data emerges, and monitor for incidents or compliance lapses.

Step 4: Offboarding and Data Handling

When a partnership ends, confirm that access is revoked and data is securely deleted or returned to prevent residual exposure.

Why does TPRM matter?

Evolving Threat Landscape

Supply chain attacks and SaaS-based breaches are becoming increasingly common, with attackers targeting vendors as a backdoor into enterprise networks. Because many vendors store or process sensitive information, a single compromise can ripple across dozens — or even hundreds — of client organizations.

Trust as a Business Enabler

Today, security is a business accelerator. Demonstrating strong vendor due diligence builds trust, accelerates deal cycles, and meets growing compliance expectations under frameworks like SOC 2, GDPR, and CCPA. Customers now expect their partners to prove, not just promise, data protection.

Risk Reduction = Revenue Protection

A proactive TPRM strategy reduces the likelihood of costly incidents, operational downtime, and reputational damage. In the long run, strong third-party governance directly supports your organization’s ability to grow securely and sustainably.

Commonly Missed Questions in Vendor Assessments

Even the most seasoned security teams can overlook critical areas during vendor assessments. These blind spots can leave your organization exposed to modern, evolving threats. Common TPRM blind spots include:

• Incident Response Transparency: How quickly will the vendor notify you of a security breach or data exposure?
• Access Control and Privilege Management: Who within their organization can access your data, and how is that access monitored?
• Continuous Monitoring: Does the vendor rely on periodic audits, or do they use real-time risk monitoring to detect anomalies?
• Fourth- and Nth-party Risk: Many companies neglect to assess their vendors’ vendors. These downstream partners often represent the weakest link in your supply chain.
• Over-reliance on Self-Assessments: Vendor questionnaires are often static and self-reported, making them prone to inaccuracy and outdated information.
• Fragmented Risk Ownership: TPRM processes siloed in IT or procurement can create accountability gaps across business units.
• Failure to Verify Controls: Accepting SOC 2 or ISO certifications at face value — without validation — can lead to a false sense of security.
• Geopolitical Risk: Data storage in regions with weak privacy laws or political instability introduces unique risks.
• AI Supply Chain Vulnerabilities: Vendors increasingly rely on AI tools, and a single compromised AI model can cascade through multiple systems.
• Immature Offboarding Practices: Poor deprovisioning leaves behind “digital ghosts” — former vendors who still retain access to sensitive data.

Learn what TPRM questions you aren’t asking — but should be. 

Your Complete TPRM Checklist: What to Ask Every Vendor Before You Sign

Before committing to a new vendor, take the time to evaluate their security governance, data protection practices, incident response protocols, and ongoing monitoring processes. Each area below represents a critical component of a mature TPRM program.

1. Company Overview & Security Governance

What it is: Understanding a vendor’s security governance helps you gauge how seriously they treat risk and compliance.

Why it matters: Vendors without formal security leadership or frameworks often lack the maturity to handle sensitive data responsibly.

Ask:

• Do you have a dedicated security team or CISO?
• What frameworks (ISO 27001, SOC 2, NIST) guide your security program?
• Can you share recent audit reports or certifications?

2. Data Protection & Privacy

What it is: How a vendor collects, processes, and protects customer data.

Why it matters: Weak encryption or unclear data handling policies can expose sensitive information and lead to regulatory penalties.

Ask:

• How is data encrypted in transit and at rest?
• Where is data stored, and do you use subprocessors?
• Are you compliant with GDPR, CCPA, or other privacy laws?

3. Application & Infrastructure Security

What it is: The measures a vendor takes to protect their systems and applications from vulnerabilities.

Why it matters: A breach in a vendor’s infrastructure can compromise your environment, even if your own defenses are strong.

Ask:

• How do you secure your software development lifecycle (SDLC)?
• What is your vulnerability management process?
• Do you conduct regular penetration testing and code reviews?

4. Incident Response & Business Continuity

What it is: A vendor’s ability to detect, contain, and recover from security incidents.

Why it matters: When a breach occurs, communication and recovery time determine the scale of damage.

Ask:

• What is your incident response plan, and how soon will you notify customers?
• Do you perform tabletop exercises or simulate attacks?
• What’s your disaster recovery plan, and what are your RTO/RPO targets?

5. Access Management & Authentication

What it is: Controls that govern who can access systems and data—and how access is granted or revoked.

Why it matters: Excessive privileges or weak authentication increase the risk of insider threats or account compromise.

Ask:

• What identity and access management tools do you use?
• Is MFA enforced for all admin and privileged accounts?
• How do you ensure least-privilege access?

6. Third-Party Dependencies

What it is: Oversight of a vendor’s own subcontractors and subprocessors.

Why it matters: Your security is only as strong as the weakest link in your vendor’s supply chain.

Ask:

• Do you vet and monitor your subprocessors?
• How do you assess the security of your supply chain partners?

7. Compliance & Audit

What it is: Evidence that a vendor meets regulatory and industry security standards.

Why it matters: Compliance doesn’t guarantee security—but it demonstrates a baseline of accountability.

‍Ask:

• Can you share your latest SOC 2 Type II or ISO 27001 report?
• Have you faced any compliance violations in the past 12 months?

8. Offboarding & Data Retention

What it is: Policies for data deletion, return, or access revocation when a relationship ends.

Why it matters: Improper data retention or deprovisioning can leave sensitive data exposed long after the contract expires.

Ask:

• What’s your process for securely deleting or returning data?
• How do you handle residual data in backups?

Build Trust Before You Buy

Choosing a vendor isn’t just a procurement decision — it’s a security decision. A well-executed TPRM checklist helps your organization mitigate risk, accelerate sales cycles, and build lasting trust with customers and partners.

Security isn’t static. Encourage ongoing evaluation—not a one-time review—and leverage automation tools to streamline assessments, track vendor performance, and scale your TPRM program efficiently.

Looking to strengthen your vendor risk program? Explore SecurityPal’s Vendor Assess (TPRM) to simplify due diligence and build trust faster.