Why Most Third-Party Risk Assessments Fail - And How to Fix Them

Businesses are increasingly relying on third-party vendors to provide essential services, from cloud infrastructure and data storage to customer engagement tools and cybersecurity platforms.

But here’s the uncomfortable truth:

Most third-party risk assessments either aren’t being done at all - or they’re being done wrong.

Too often, these assessments are reduced to a simple checkbox exercise like a generic questionnaire, a stale SOC 2 report, or worse, a blind assumption that “this vendor must be secure.”

This approach is not only ineffective - it’s dangerous.

Why the Traditional Approach Fails

• Lack of Context: Standardized questionnaires rarely factor in how you intend to use a vendor. A SaaS provider storing sensitive customer data should not be assessed the same way as one providing marketing automation.
• Superficial Review: Many assessments never look beyond high-level certifications. Just having a SOC 2 report doesn’t mean the vendor is applying the right controls for your use case.
• No Real Risk-Based Thinking: Without aligning the vendor’s controls to your own risk profile, you’re guessing - not managing risk.

My Method: A Deep Dive, Risk-Based Assessment That Delivers Clarity

My process goes far beyond the surface:

• Contextual Analysis: I assess vendors based on the actual services you plan to use, mapping the risk to your organization’s environment.
• Policy & Procedure Review: I dig into the vendor’s internal policies and procedures - not just their SOC 2 summary - to understand how security is truly operationalized.
• SOC 2 Deep Dive: Instead of treating a SOC 2 report as a checkbox, I analyze the control details, exceptions, and carve-outs to uncover hidden risks that could affect your compliance, security posture, or business operations.
• Tailored Risk Scoring: I apply a scoring and prioritization framework that reflects real-world impact - not theoretical threats.

This Approach is Perfect for:

• Organizations evaluating new vendors, platforms, or services (especially new enterprise systems such as ERP, CRM, HR/Payroll, or AI systems).
• Businesses going through mergers and acquisitions where inherited risk matters (and it always does!)
• Teams needing a repeatable, defensible TPRM processes for board, regulatory, or customer confidence

The Result?

You get a decision-ready vendor risk report (and an opinion that is based in professional experience) that together provides clarity, confidence, and compliance - not just paperwork.

Let’s Talk

If you’re evaluating a new vendor, undergoing a digital transformation, or heading into an M&A deal, this is the time to do vendor due diligence right!

Send me a message, and let's setup time to discuss how this deep-dive TPRM approach can protect your business before risk becomes reality.