Vendor Risk Assessment Form for India

Vendor Risk Assessment Form Template for India

A comprehensive vendor risk assessment form designed in accordance with Indian regulatory requirements, including compliance with the Information Technology Act, 2000, Companies Act, 2013, and relevant RBI guidelines. This document serves as a structured evaluation tool to assess potential and existing vendors across multiple risk dimensions including financial stability, operational capabilities, information security measures, regulatory compliance, and business continuity planning. The form incorporates specific Indian legal and regulatory requirements while maintaining alignment with global vendor risk management best practices.

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What is a Vendor Risk Assessment Form?

The Vendor Risk Assessment Form is a crucial document used by organizations to evaluate and monitor the risks associated with engaging third-party vendors in India. This assessment tool is designed to comply with Indian regulatory requirements, including the Information Technology Act, 2000, Companies Act, 2013, and relevant RBI guidelines. It helps organizations gather and analyze critical information about vendors' operations, financial stability, security measures, and compliance status. The form is particularly important in the context of increasing regulatory scrutiny and the need for robust third-party risk management in India. It should be used before engaging new vendors and periodically for existing vendors, especially those handling sensitive data or providing critical services.

What sections should be included in a Vendor Risk Assessment Form?

1. 1. Vendor Information: Basic information about the vendor including company name, registration details, years in business, and key contacts

2. 2. Business Profile: Overview of vendor's business operations, including products/services offered, market presence, and key customers

3. 3. Financial Assessment: Evaluation of vendor's financial stability, including financial statements, credit ratings, and bankruptcy history

4. 4. Operational Risk Assessment: Assessment of vendor's operational capabilities, business continuity plans, and disaster recovery procedures

5. 5. Information Security and Data Protection: Evaluation of vendor's cybersecurity measures, data protection policies, and compliance with IT regulations

6. 6. Compliance and Regulatory: Assessment of vendor's compliance with relevant laws, regulations, and industry standards

7. 7. Supply Chain Management: Evaluation of vendor's supply chain processes, including subcontractor management and delivery capabilities

8. 8. Quality Management: Assessment of quality control processes, certifications, and quality management systems

9. 9. Risk Rating and Recommendations: Overall risk assessment score and recommendations for risk mitigation

What sections are optional to include in a Vendor Risk Assessment Form?

1. Environmental and Sustainability Assessment: For vendors where environmental impact is significant or when assessing sustainability practices is required

2. Physical Security Assessment: For vendors who handle physical assets or require access to physical facilities

3. Healthcare-Specific Compliance: For vendors providing healthcare-related services or handling medical data

4. Financial Services-Specific Assessment: For vendors providing services to financial institutions

5. Cloud Services Security: For vendors providing cloud-based services or solutions

6. International Operations Assessment: For vendors with international operations or cross-border services

What schedules should be included in a Vendor Risk Assessment Form?

1. Schedule A - Detailed Security Questionnaire: Comprehensive checklist of security controls and measures

2. Schedule B - Financial Information Template: Template for submission of detailed financial information

3. Schedule C - Compliance Certification Checklist: List of required certifications and compliance documents

4. Schedule D - Business Continuity Questionnaire: Detailed assessment of business continuity and disaster recovery capabilities

5. Schedule E - Document Submission Checklist: List of required supporting documents and certificates

6. Appendix 1 - Risk Rating Matrix: Matrix explaining the risk scoring methodology

7. Appendix 2 - Glossary of Terms: Definitions of technical terms and abbreviations used in the assessment

8. Appendix 3 - Industry-Specific Requirements: Additional requirements based on specific industry regulations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

India

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Information Technology

Healthcare

Manufacturing

Retail

Telecommunications

Professional Services

Energy and Utilities

Insurance

Education

Government/Public Sector

Relevant Teams

Procurement

Vendor Management

Risk Management

Compliance

Information Security

Legal

Operations

Finance

Internal Audit

IT Security

Supply Chain

Relevant Roles

Procurement Manager

Vendor Management Officer

Risk Management Director

Compliance Officer

Information Security Manager

Legal Counsel

Chief Risk Officer

Supply Chain Manager

IT Security Officer

Operations Manager

Finance Director

Chief Information Security Officer

Audit Manager

Industries
Information Technology Act, 2000 (IT Act): Governs electronic transactions, data protection, and cybersecurity requirements that vendors must comply with when handling electronic data and information systems
Personal Data Protection Bill (latest version): Though pending enactment, provides framework for personal data protection and privacy requirements that vendors must adhere to when processing personal data
Companies Act, 2013: Regulates corporate governance and business relationships, including vendor contracts and disclosure requirements
Prevention of Corruption Act, 1988: Ensures anti-corruption compliance in vendor relationships and business transactions
Indian Contract Act, 1872: Provides the fundamental legal framework for contract formation and enforcement in vendor relationships
Goods and Services Tax (GST) Laws: Governs taxation aspects of vendor relationships and transactions
Environment Protection Act, 1986: Relevant for assessing vendor's environmental compliance and sustainability practices
Reserve Bank of India Guidelines: Applicable for vendor risk assessment in financial services sector and cross-border transactions
Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011: Specifies security practices and procedures for protecting sensitive personal data that vendors might handle
Foreign Exchange Management Act, 1999 (FEMA): Relevant for international vendor relationships and cross-border transactions
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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