How to Manage Third-Party Risks with an ISO 27001 Vendor Assessment Template

The ISO 27001 standard provides a clear framework for managing information security, including how to handle risks linked to external vendors and partners. Developing an ISO 27001 vendor assessment template can help organizations evaluate each vendor’s security practices in a consistent and auditable way. 

This blog explains how ISO 27001 supports third-party risk management, what to include in a vendor assessment template, and how solutions like ComplyScore® by Atlas Systems can automate and strengthen this process.

ISO 27001 Requirements for Third-Party Risk Management

ISO 27001 outlines how organizations should identify and manage risks related to external vendors, service providers, and partners who have access to their information or systems. The standard recognizes that even if data is handled by a third party, the responsibility for protecting that information remains with the organization.

Under ISO 27001, several clauses and controls directly relate to vendor and third-party risk management:

• Clause 4.2: Understanding the needs of interested parties: Organizations must identify stakeholders that can affect information security, which includes vendors and service providers
• Clause 6.1: Actions to address risks and opportunities: Requires assessing and treating risks introduced by third parties.
• Annex A.5.19: Information security in supplier relationships: Ensures that suppliers implement adequate information security measures.
• Annex A.5.20: Addressing information security within supplier agreements: Calls for clearly defined security requirements in vendor contracts.
• Annex A.5.21: Managing changes to supplier services: Focuses on maintaining security during service transitions or changes in vendor scope.

These requirements make it clear that third-party risk management under ISO 27001 is not a one-time activity but a continuous process. It involves assessing vendors during onboarding, monitoring them throughout the relationship, and reviewing risks when services or systems change.

Atlas Systems supports organizations in aligning with these ISO 27001 requirements through ComplyScore® by Atlas Systems, which automates vendor assessments, tracks supplier compliance, and provides dashboards to visualize risk levels. This helps businesses maintain ongoing compliance and reduce the effort involved in manual risk tracking.

You may be interested in this: Top 10 Automated Risk Assessment Tools in the US

Core Elements of an ISO 27001 Vendor Assessment Template

An effective ISO 27001 vendor assessment template serves as a structured tool to evaluate how well a vendor’s information security practices align with ISO requirements. It ensures that each third-party is reviewed consistently, using measurable criteria that support informed risk decisions.

Below are the key elements that every ISO 27001 vendor assessment template should include:

1. Vendor information and risk classification

Start by collecting basic details about the vendor, such as their business type, services offered, and the type of data they handle. Classify the vendor based on risk level (high, medium or low) depending on their access to sensitive information or systems. This helps determine the depth of assessment required.

2. Security policies and governance

Evaluate whether the vendor has formal information security policies aligned with ISO 27001 or similar frameworks. The template should capture evidence of security ownership, policy reviews and documentation of roles and responsibilities.

3. Data protection and privacy controls

Check how vendors manage the confidentiality, integrity, and availability of information. This includes encryption, data retention, access management, and compliance with privacy laws such as GDPR or HIPAA.

4. Access control and user management

The template should assess how vendors control access to data and systems. This covers password policies, privileged access, and authentication mechanisms.

5. Incident management and response

Vendors must have procedures for detecting, reporting, and responding to security incidents. The assessment should verify if they maintain incident logs, perform root cause analysis, and share incident updates with clients when relevant.

6. Business continuity and disaster recovery

Review whether vendors have tested business continuity and disaster recovery plans. The template should include questions on backup frequency, recovery time objectives, and system resilience.

7. Compliance and audit readiness

Ensure vendors can provide audit evidence and compliance certifications (For example: ISO 27001, SOC 2). The assessment should also check how often internal audits are performed and how findings are addressed.

Check this out: 10 Best Compliance Tracking Software to Consider in 2025

8. Performance tracking and improvement

An often-overlooked area is how vendors monitor their own performance and security maturity. The template should record if vendors have key performance indicators (KPIs), continuous improvement plans, or risk mitigation strategies in place.

Designing a Vendor Qualification Questionnaire

A vendor qualification questionnaire is one of the most important parts of ISO 27001 third-party risk management. It helps collect detailed information about a vendor’s security practices, compliance posture, and risk exposure before engaging them. A well-designed questionnaire ensures that vendors are evaluated fairly, consistently, and in alignment with ISO 27001 controls.

1. Define objectives and scope

Start by clarifying what the questionnaire aims to achieve. Is it for onboarding new vendors, re-evaluating existing ones, or checking compliance with specific ISO 27001 clauses? Defining the scope helps tailor the questionnaire to the vendor’s role, service type, and data access level.

2. Map questions to ISO 27001 controls

Each question should align with relevant ISO 27001 requirements. For example:

• Questions on data handling relate to Annex A.8 (Asset Management).
• Questions on access control align with Annex A.9.
• Questions on incident response map to Annex A.16.
• Questions on supplier management directly tie to Annex A.5.19–A.5.21.

Mapping questions to controls ensures traceability during audits and demonstrates that vendor risks are assessed in line with ISO standards.

3. Include both qualitative and quantitative questions

Use a mix of yes/no, multiple-choice and descriptive questions. For example:

• Does your organization have an ISO 27001 certification?
• How often do you conduct internal security audits?
• Describe your data backup and recovery process. 

Combining structured and open-ended questions helps gather measurable data along with valuable context.

4. Assign scoring and risk weights

Each question should contribute to a total risk score. Critical controls (like encryption or incident response) can carry higher weights. This allows organizations to prioritize remediation for high-risk areas and categorize vendors as low, medium, or high risk.

5. Automate and centralize the process

Manual questionnaires are time-consuming and prone to inconsistencies. Using an automated platform ensures faster distribution, better tracking, and easier follow-up.

How to Conduct a Vendor Risk Assessment Using the Template

Once an ISO 27001 vendor assessment template or qualification questionnaire is ready, the next step is to apply it systematically across your vendor network. A structured assessment process helps you identify which vendors pose the greatest security risks and where to focus your mitigation efforts.

Below are the key steps to conducting an effective vendor risk assessment using the ISO 27001 framework:

Step 1. Identify and categorize vendors

Begin by listing all vendors that have access to your systems, data, or business processes. Classify them based on the nature of their service and level of data access, for example, critical, high, medium, or low risk. This ensures your most sensitive relationships receive deeper scrutiny.

Step 2. Distribute the vendor assessment template

Share the ISO 27001 vendor assessment template or questionnaire with the selected vendors. Encourage them to provide detailed, evidence-backed responses. A well-defined timeline and communication process help reduce delays and ensure accountability.

Step 3. Evaluate responses and verify evidence

Review each vendor’s answers, supporting documents, and certifications (such as ISO 27001, SOC 2, or GDPR compliance). Verify the information where necessary through audits, interviews, or system checks. Assess whether the controls in place meet your organization’s risk tolerance.

Step 4. Assign risk scores and prioritize vendors

Based on the questionnaire responses, calculate a risk score for each vendor. This score should consider the likelihood of a threat and its potential impact. Prioritize vendors with higher scores for follow-up actions or remediation.

Step 5. Develop risk treatment plans

For vendors with identified gaps, define corrective actions such as policy updates, additional controls, or enhanced monitoring. Set deadlines and track progress to ensure the issues are resolved before renewal or continued engagement.

Step 6. Maintain continuous monitoring

Vendor risk management doesn’t end after the initial assessment. Schedule periodic reassessments, monitor for new risks, and update the template as ISO 27001 or regulatory requirements evolve.

Read: Streamlining Vendor Procurement: Key Steps in the Vendor Selection Process and Evaluation

Explore Atlas Systems for Continuous Vendor Monitoring

Managing vendor compliance isn’t just about occasional checks. It requires continuous monitoring, clear regulatory guidance, and proactive risk management. Atlas Systems, through ComplyScore® by Atlas Systems, brings all three together to help organizations handle compliance and vendor oversight with confidence.

Learn more about compliance and regulatory monitoring software for risk-free operations

Standardize Vendor Risk with ISO 27001

Managing third-party risks is a critical part of protecting your organization’s data, operations, and reputation. Using an ISO 27001 vendor assessment template provides a structured, consistent way to evaluate vendors, identify potential risks, and ensure compliance with security and regulatory requirements.

ComplyScore® by Atlas Systems helps simplify this by automating assessments, tracking vendor compliance and providing real-time risk visibility.

By standardizing your vendor risk management process and leveraging technology, organizations can reduce exposure, improve decision-making, and maintain alignment with ISO 27001 standards, all while building stronger, safer partnerships with their vendors.

Schedule a demo now to see how automated assessments, continuous monitoring, and real-time insights can simplify compliance and strengthen your vendor relationships.

FAQs on ISO 27001 Vendor Assessment Template

1. What questions should be included in an ISO 27001 vendor assessment template?

The template should cover areas like data protection, access controls, incident management, business continuity, compliance certifications, and policies. Questions should also check if the vendor meets ISO 27001 requirements relevant to your organization.

2. How often should vendors be reassessed under ISO 27001?

Vendors should be reassessed regularly, depending on their risk level. High-risk vendors may need reviews every 6–12 months, while low-risk vendors can be reviewed annually. Reassessments are also needed if there are major changes in services or regulatory requirements.

3. Can ISO 27001 vendor assessment templates be customized by industry or risk level?

Yes. Templates can be adjusted based on the type of vendor, the industry, and the level of access they have to sensitive data. Customizing ensures that assessments focus on the most relevant risks.

4. What are common mistakes organizations make when using vendor questionnaires?

Common mistakes include:

• Sending generic questionnaires that don’t match the vendor’s risk or role
• Not following up on incomplete or unclear responses
• Failing to update the questionnaire as standards or regulations change
• Ignoring the results instead of using them to manage risk