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A Vendor Risk Assessment Form helps Saudi organizations evaluate and track potential risks when working with outside suppliers or contractors. This standardized document, required under KSA procurement regulations, examines key areas like a vendor's financial stability, cybersecurity measures, and compliance with Shariah business principles.

Companies use these forms to protect themselves from operational disruptions, data breaches, and regulatory issues. The assessment typically covers the vendor's track record, insurance coverage, and ability to meet local requirements - including Saudization quotas and SAMA guidelines. It's an essential tool for maintaining supply chain security and meeting compliance obligations under Saudi commercial law.

Complete a Vendor Risk Assessment Form before entering any significant supplier relationship in Saudi Arabia, especially when dealing with critical services, sensitive data, or high-value contracts. This evaluation becomes particularly important when onboarding vendors who will access your IT systems, handle confidential information, or provide essential business services.

The form proves invaluable during major procurement decisions, mergers, or when expanding supplier networks. Saudi organizations must conduct these assessments to comply with SAMA regulations, protect against cyber threats, and ensure vendors meet Shariah compliance standards. Regular reassessments are needed when contract terms change or when vendors take on expanded responsibilities.

• Basic Assessment: The standard Vendor Risk Assessment Form covers financial stability, operational capabilities, and Shariah compliance - ideal for routine vendor evaluations.
• IT Security Form: Enhanced evaluation focusing on cybersecurity controls, data protection measures, and SAMA compliance requirements.
• Critical Supplier Assessment: Comprehensive version for high-risk vendors handling sensitive operations or critical infrastructure.
• Financial Services Variant: Specialized form aligned with Saudi banking regulations and SAMA guidelines for financial sector vendors.
• Government Contractor Form: Modified version meeting specific public sector requirements and Saudization criteria.

• Risk Management Teams: Lead the assessment process, customize the Vendor Risk Assessment Form, and coordinate evaluations across departments.
• Procurement Officers: Use the form to screen potential vendors and maintain compliance with Saudi procurement regulations.
• Legal Department: Reviews and validates assessment criteria, ensures alignment with Saudi commercial law and Shariah principles.
• IT Security Teams: Evaluate technical security controls and data protection measures of potential vendors.
• Vendor Representatives: Complete required sections, provide documentation, and respond to assessment inquiries.
• Compliance Officers: Monitor assessment completion and maintain records for SAMA and regulatory requirements.

• Vendor Details: Gather basic information including legal name, commercial registration number, and key contact details.
• Business Scope: Document the vendor's core services, geographic coverage, and relevant industry certifications.
• Financial Data: Collect financial statements, bank references, and Zakat compliance certificates.
• Compliance Status: Verify Saudization rates, SAMA licenses, and other regulatory permits.
• Risk Categories: Define specific risk areas relevant to your industry and services.
• Security Measures: List required cybersecurity controls and data protection standards.
• Assessment Criteria: Establish clear scoring metrics aligned with your risk tolerance levels.

• Vendor Information Section: Full legal name, commercial registration details, and authorized signatory information as per Saudi commercial law.
• Risk Categories: Clear breakdown of operational, financial, technical, and Shariah compliance risk factors.
• Regulatory Compliance: Statements confirming adherence to SAMA guidelines, Saudization requirements, and data protection laws.
• Security Measures: Specific cybersecurity and data handling protocols aligned with Saudi standards.
• Assessment Criteria: Detailed evaluation metrics and scoring methodology.
• Declaration Section: Vendor attestation of information accuracy and compliance with Saudi regulations.
• Governing Law Clause: Express statement of Saudi law application and jurisdiction.

A Vendor Risk Assessment Form differs significantly from a Vendor Risk Management Policy in both scope and application within Saudi Arabia's regulatory framework. While they're related, each serves a distinct purpose in vendor oversight.

• Purpose and Timing: The assessment form is a point-in-time evaluation tool used when screening specific vendors, while the policy document outlines the organization's overall approach to managing vendor risks continuously.
• Content Focus: Assessment forms contain specific questions and metrics about individual vendors, whereas the policy sets broader guidelines, procedures, and risk tolerance levels.
• Legal Standing: The policy serves as an internal governance document approved by leadership, while the assessment form becomes part of the vendor's compliance record and contractual documentation.
• Regulatory Alignment: Assessment forms directly address SAMA's vendor due diligence requirements, while policies outline how the organization meets broader risk management obligations.