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Template
Residual Risk Calculation Template
Know your real vendor risk after controls are deployed with this template
- Risk Domain Assessment (inherent baseline)
- Control Effectiveness Scoring (0-100% effectiveness per domain)
- Residual Risk Calculation (inherent minus control benefit)
- Risk Acceptability Criteria and thresholds
- Control Gap Identification and remediation
- Board-Ready Risk Reporting format
- Risk Reduction Percentage tracking over time
Inherent risk is just the starting point. Residual risk is what's left after controls are in place. This template calculates both. Answer: Is this vendor's residual risk acceptable? Or do we need stronger controls? Data-driven risk decisions.
Inherent risk is just the starting point. Residual risk is what's left after controls are in place. This template calculates both. Answer: Is this vendor's residual risk acceptable? Or do we need stronger controls? Data-driven risk decisions.
Why consistency matters
Vendor risk assessment is foundational to everything downstream: tiering decisions, monitoring priorities, remediation focus, board reporting. If your assessment is ad-hoc, everything else is unreliable.
A solid assessment framework gives you:
- Comparable vendor scores - actually compare vendors against each other
- Audit-ready documentation - show auditors exactly how you assessed and why
- Faster cycles - standardized questions mean less customization
- Clear escalation triggers - when a score drops, you know what to do
How to use this:
You have two paths forward. You can build this yourself using the template. Start by customizing it for your specific industry and risk profile, then send it to vendors to complete. As responses come in, you'll track them in a spreadsheet and score them manually. It takes time and effort to coordinate, but you own the entire process and can adjust it whenever you need.
Alternatively you can use ComplyScore®.
Instead of vendors filling out spreadsheets and you doing manual scoring, vendors answer once in the platform and scoring happens automatically. Risk trends appear in real-time, so you're not waiting weeks for data. Every vendor gets assessed using the exact same framework without shifting criteria or inconsistencies.
And here's the key difference: monitoring continues automatically without you having to rebuild the framework every quarter.