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A Vendor Risk Assessment Form helps organizations evaluate potential business partners and suppliers before working with them. It's a structured questionnaire that captures key information about a vendor's security practices, financial stability, and compliance with Australian regulations like the Privacy Act 1988 and modern slavery laws.

Organizations use these forms to identify and measure risks when selecting new vendors or reviewing existing ones. The assessment typically covers data protection measures, business continuity plans, insurance coverage, and regulatory compliance. For ASX-listed companies and government contractors, these assessments are often mandatory and form part of their due diligence obligations.

Use a Vendor Risk Assessment Form before entering any significant supplier relationship or when major changes occur with existing vendors. This includes bringing on new software providers who'll handle sensitive data, engaging contractors for critical business functions, or working with overseas suppliers who must comply with Australian privacy and security requirements.

Complete these assessments during vendor selection, before contract renewal, and when vendors undergo significant changes like mergers or relocations. For regulated industries like financial services and healthcare, timing often aligns with APRA's prudential standards and other compliance deadlines. Many organizations run assessments quarterly for high-risk vendors and annually for others.

• Basic Assessment Form: Covers fundamental vendor details, financial stability, and basic risk factors - ideal for small businesses and low-risk partnerships
• Comprehensive Due Diligence Form: Detailed evaluation including cybersecurity, data protection, and modern slavery compliance - suited for enterprise vendors
• Industry-Specific Forms: Tailored assessments for healthcare (PCEHR compliance), financial services (APRA requirements), or government contractors
• IT Vendor Assessment: Focused on technology risks, data security, and Privacy Act compliance
• Supply Chain Risk Form: Emphasizes operational continuity, geographic risks, and compliance with Australian Consumer Law

• Procurement Teams: Lead the vendor assessment process and maintain the forms as part of their supplier management duties
• Risk Managers: Review and evaluate completed assessments, flag potential issues, and recommend risk mitigation strategies
• Legal Department: Ensures forms align with Australian regulatory requirements and updates them as compliance needs change
• IT Security Teams: Assess technical risks and data protection measures, especially for digital service providers
• Vendor Representatives: Complete the forms, provide supporting documentation, and respond to follow-up queries
• Compliance Officers: Monitor ongoing vendor compliance and coordinate periodic reassessments

• Business Context: Document your organization's risk tolerance levels and specific vendor requirements
• Regulatory Checklist: List relevant Australian standards like Privacy Act, APRA guidelines, and industry-specific requirements
• Assessment Scope: Define which vendor activities and services need evaluation
• Risk Categories: Map out key areas like financial stability, data security, operational continuity, and compliance
• Scoring System: Develop clear criteria for evaluating vendor responses
• Review Process: Establish who needs to approve the assessment and what triggers reassessment
• Documentation Plan: Set up a system to store and track completed assessments and supporting materials

• Vendor Details: Legal entity name, ABN/ACN, registered address, and key contact information
• Privacy Compliance: Questions addressing Australian Privacy Principles and data handling practices
• Risk Categories: Financial stability, operational continuity, cybersecurity measures, and insurance coverage
• Regulatory Section: Modern slavery compliance, industry-specific requirements, and relevant certifications
• Security Controls: Data protection measures, breach notification procedures, and incident response plans
• Declaration: Statement confirming information accuracy, signed by authorized representative
• Assessment Framework: Clear scoring criteria and risk rating methodology
• Review Timeline: Frequency of reassessment and triggers for immediate review

A Vendor Risk Assessment Form differs significantly from a Vendor Risk Management Policy. While they're related, each serves a distinct purpose in your vendor governance framework.

• Scope and Purpose: The assessment form is a practical tool for evaluating individual vendors, while the policy document outlines your organization's overall approach to managing vendor risks
• Timing of Use: Assessment forms are completed during vendor selection or review periods, whereas the policy remains constant and guides all vendor interactions
• Content Focus: Forms capture specific data points and risk indicators about a particular vendor, while policies establish standard procedures, risk tolerance levels, and decision-making frameworks
• Legal Standing: The policy serves as your authoritative governance document, while assessment forms function as supporting evidence of due diligence under Australian regulations