Vendor Risk Assessment Form Template for England and Wales

A Vendor Risk Assessment Form helps organizations evaluate the potential risks of working with external suppliers and service providers. Companies in England use these forms to screen vendors across key areas like data security, financial stability, and regulatory compliance - especially important under UK data protection laws and financial regulations.

The form typically covers operational risks, cyber security measures, business continuity plans, and other critical factors that could impact your organization. By documenting this assessment process, you create an audit trail that demonstrates due diligence to regulators while protecting your business from vendor-related disruptions or legal issues.

Use a Vendor Risk Assessment Form before entering any new supplier relationship, especially when the vendor will handle sensitive data or provide critical services. This evaluation becomes particularly important when onboarding providers who'll access your IT systems, process customer information, or deliver essential components to your supply chain.

Complete the assessment during vendor selection, and review it annually or when major changes occur in your supplier's operations. UK regulators expect thorough vendor screening under various frameworks, including the Data Protection Act 2018 and FCA requirements. Getting this documentation right early helps prevent costly disruptions and compliance issues later.

• Basic Due Diligence Forms: Focus on fundamental supplier information, financial health checks, and basic compliance status - ideal for low-risk vendors
• IT Security Assessment Forms: Detailed evaluation of data protection measures, cyber security controls, and GDPR compliance - crucial for tech vendors
• Financial Services Vendor Forms: Enhanced scrutiny of regulatory compliance, operational resilience, and FCA requirements - specific to financial sector suppliers
• Supply Chain Risk Forms: Comprehensive assessment of operational capabilities, business continuity, and geographic risks - suited for critical suppliers
• ESG Vendor Forms: Evaluation of environmental standards, social responsibility, and governance practices - increasingly important under UK regulations

• Procurement Teams: Lead the vendor assessment process, coordinate with stakeholders, and maintain the forms as part of supplier management
• Risk Management Officers: Review and approve assessments, set risk thresholds, and ensure alignment with company risk policies
• Legal Departments: Ensure forms meet UK regulatory requirements and update content based on changing legislation
• IT Security Teams: Evaluate technical risk sections and validate vendor cybersecurity measures
• Vendor Organizations: Complete the forms, provide supporting documentation, and maintain ongoing compliance with stated requirements

• Company Profile: Gather basic vendor details including legal name, registration number, years in business, and key contacts
• Service Scope: Define exactly what products or services the vendor will provide and how they impact your operations
• Risk Categories: List specific areas needing assessment - data handling, financial stability, regulatory compliance, operational capability
• Supporting Documents: Request relevant certifications, insurance policies, financial statements, and compliance records
• Assessment Criteria: Establish clear scoring metrics and risk thresholds aligned with your organization's risk appetite
• Review Process: Map out approval workflows and set periodic review dates for ongoing monitoring

• Vendor Information Section: Legal entity details, registered address, and authorized representatives' information
• Data Protection Assessment: GDPR compliance status, data handling procedures, and security measures in place
• Financial Risk Evaluation: Credit status, financial stability metrics, and insurance coverage details
• Operational Capabilities: Business continuity plans, service delivery standards, and quality control processes
• Regulatory Compliance: Industry-specific certifications, licenses, and relevant UK regulatory requirements
• Risk Rating Framework: Clear scoring criteria and risk threshold definitions
• Sign-off Section: Designated approval authorities, date fields, and confirmation of information accuracy

A Vendor Risk Assessment Form differs significantly from a Vendor Risk Management Policy in both scope and application. While they work together, each serves a distinct purpose in your supplier governance framework.

• Purpose and Timing: The assessment form is a practical tool used to evaluate specific vendors at defined points, while the policy document sets out your organization's overall approach to vendor risk management
• Content Focus: Assessment forms contain specific questions and metrics for individual vendor evaluation, whereas the policy outlines broader principles, procedures, and risk tolerance levels
• Legal Standing: The policy serves as a governance document that defines internal requirements, while the assessment form generates evidence of due diligence for regulatory compliance
• Usage Pattern: Policies remain relatively static with annual reviews, while assessment forms are completed frequently for each new vendor relationship