Risk Management

Third-Party Risk Management Policy

A third-party risk management policy template for assessing, monitoring, and managing risks from vendors, suppliers, and business partners.

16-20 pages|Updated 2026-02-15|3 frameworks

What's Included

1. Purpose & Scope

Defines the scope of third-party risk management activities.

2. Third-Party Classification

Establishes a tiering system based on criticality and risk.

3. Due Diligence

Outlines pre-engagement due diligence requirements.

4. Contractual Requirements

Defines security and compliance clauses for third-party agreements.

5. Ongoing Monitoring

Establishes continuous monitoring of third-party risks.

6. Incident Management

Defines procedures for third-party security incidents.

7. Exit & Transition

Outlines procedures for terminating third-party relationships.

8. Review & Reporting

Sets reporting and review requirements.

Frequently Asked Questions

What should a third-party risk management policy include?

A comprehensive third-party risk management policy should include purpose & scope, third-party classification, due diligence, contractual requirements, and more. This template covers 8 key sections aligned to ISO 27001, NIST CSF, SOC 2 requirements.

Which frameworks require a risk management policy?

Major frameworks requiring risk management policies include ISO 27001, NIST CSF, SOC 2. This template maps directly to their control requirements, making it easier to demonstrate compliance across multiple standards.

How often should a third-party risk management policy be reviewed?

Best practice is to review your third-party risk management policy at least annually, or whenever significant changes occur in your organisation, technology environment, or regulatory landscape. Most frameworks including ISO 27001 and NIST CSF require documented policy review cycles.

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