Working with third-party vendors isn’t just common – it’s practically inevitable, especially as your business scales. But as you’re probably aware by now, with great partnerships come great responsibilities (and risks). Even if your own security posture is rock solid, your compliance and GRC efforts can still fall apart if your vendors don’t hold up their end of the bargain.
Managing internal security is hard enough. Add third parties into the mix, and it becomes a whole new challenge. Whether you’re building a product, processing customer data, or scaling infrastructure, your vendors’ security practices can directly impact your own risk exposure and ability to stay compliant.
That’s where two key tools come into play: RFPs and security questionnaires. Both are essential to vendor assessments, but they’re not interchangeable. Each serves a different purpose, and knowing when to use which one (or both) can make your life a whole lot easier.
So, what exactly is the difference between an RFP and a security questionnaire? And how do you know which one to use, when? Let’s dive in!
TL;DR
- Use RFPs to evaluate and compare new vendors based on capabilities, pricing, and fit.
- Use security questionnaires to assess a vendor’s security and compliance posture—especially post-selection or for existing vendors.
- Use both for high-risk vendors, and automate the process with Scytale to save time, reduce risk, and stay compliant.
What is an RFP (Request for Proposal)?
An RFP, or Request for Proposal, is like the dating profile your company sends out to potential vendors – only way more detailed and focused on business needs.
When you’re looking for a new vendor to provide a service or solution (think cloud hosting, data analytics platforms, HR systems), you would use an RFP to:
- Clearly outline what you need
- Ask vendors to pitch how they would fulfill those needs
- Compare vendors on pricing, features, implementation, and more
It’s not just a casual inquiry. An RFP is a structured document and a key step in the procurement process. It usually includes a request for proposal format, a list of must-haves, nice-to-haves, and a submission deadline.
You might also see references to writing a request for proposal or creating an RFP outline. These terms all point to crafting the document that guides your vendor evaluation process. A well-thought-out request for proposal design can save your team from a lot of back-and-forth and make vendor comparisons much easier.
And yes, you guessed it, there are even vendor risk management tools and templates out there (like an RFP requirements template) to help you create an RFP faster and more effectively.
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What is a Security Questionnaire?
Once you’ve found a vendor you like (or are already working with), it’s time to make sure they’re not a security liability. That’s where security questionnaires come in.
Security questionnaires are structured sets of questions used to assess a vendor’s security posture. They’re essential for making sure a vendor meets your organization’s specific security and compliance requirements. These questions often cover:
- Data encryption practices
- Access controls
- Incident response policies
- Application security questionnaires
- Compliance with key security and data privacy frameworks like ISO 27001, SOC 2, GDPR, HIPAA, PCI DSS, and more
Security questionnaires are a key component of your broader third-party risk management strategy, typically conducted annually or whenever there are significant changes in a vendor’s services – such as launching new features, expanding into new markets, or integrating with other platforms – or in their business structure, like mergers, acquisitions, leadership changes, or shifts in data handling practices.
Key Differences Between RFPs and Security Questionnaires
| Feature | Request for Proposal (RFP) | Security Questionnaire |
|---|---|---|
| Purpose | Choose a vendor | Assess vendor security |
| When Used | Before selecting a vendor | Before/after onboarding or annually |
| Content Focus | Features, pricing, services | Security, privacy, compliance |
| Format | Structured proposal document | Questionnaire (spreadsheet, portal, etc.) |
| Team Involved | Procurement, product, IT | Security, GRC, legal |
In a nutshell, RFPs help you pick the best option. Security questionnaires help you make sure that option isn’t a total compliance landmine.
When to Use an RFP vs. a Security Questionnaire
Sometimes you’ll use one, sometimes the other, and sometimes both. It all depends on where you are in the vendor lifecycle and what you’re trying to achieve. Here’s how to know:
Use an RFP when:
- You’re in the process of selecting a new vendor or service provider.
- You need to compare multiple vendors based on pricing, features, support, and overall fit.
- Your procurement process requires a formal, structured way to collect and review vendor proposals.
Use a Security Questionnaire when:
- You’ve already chosen a vendor and want to dig into their security and compliance posture.
- You’re going through your own compliance process (e.g., ISO 27001 or SOC 2) and need to ensure your vendors are up to standard.
- Your vendor will be handling sensitive data like PHI, and you want to minimize risk by verifying their security controls and practices.
In many cases, these tools go hand in hand. An RFP helps you choose the right partner, while a security questionnaire helps you confirm they’re not a risk to your compliance status or reputation. An RFP can even include a mini security questionnaire as part of the vetting process.
Benefits of Using RFPs for Vendor Risk Assessments
Thinking about using an RFP (Request for Proposal) to evaluate vendors? Here’s why it’s a smart move:
- Structured vendor comparison: RFPs ensure all vendors respond to the same criteria, making it easier to compare proposals side by side – apples to apples.
- Clear business requirements: A well-crafted RFP helps define your needs and get everyone internally on the same page (which is often half the battle).
- Encourages competitive pricing: When vendors know they’re being compared, you’re more likely to get better pricing, extra features, or added value.
- Cross-department alignment: Legal, finance, IT, and other stakeholders can get involved early, helping you avoid last-minute surprises.
- Streamlined decision-making: A strong RFP process brings structure, fairness, and clarity to choosing the right vendor.
With a well-designed RFP, you’ll save time, reduce confusion, and make smarter decisions – what’s not to love?
Benefits of Using Security Questionnaires for Vendor Security Assessments
Security questionnaires might not sound all that exciting, but they’re one of the most effective ways to reduce risk. Here’s how they help:
- Ensure Compliance: Make sure your vendors align with key security and privacy compliance frameworks like SOC 2, ISO 27001, HIPAA, and GDPR.
- Avoid Nasty Surprises: It’s way better to find out now that a vendor doesn’t encrypt data or has weak access controls – rather than after a breach.
- Support Audit Readiness: Your future self (and your auditors) will thank you for having all the right documentation in place.
- Promote Vendor Accountability: When vendors know you’re asking serious security questions, they’re more likely to take it seriously too. It sets the tone that security is a top priority.
Need help tackling questionnaires like a pro? Check out our Best Practices for Answering Security Questionnaires to make the process smoother and faster.
💡Pro Tip: Automate Vendor Assessments with Scytale
With Scytale, you can streamline vendor risk management, conducting reviews and tracking third-party risks, so you always stay in control. Additionally, with AI-powered security questionnaires backed by expert review, you can respond to assessments faster and keep sales cycles moving. Everything stays centralized and on schedule.
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Choosing the Right Approach for Your Vendor Assessment Needs
So, how do you choose between RFPs and security questionnaires? The truth is, you don’t always have to. These tools serve different purposes and work best when used strategically together.
When you’re considering a new vendor, an RFP is usually your first move. It helps you evaluate potential providers based on their capabilities, pricing, and overall fit – like casting a wide net to see which fish are worth reeling in. Once you’ve narrowed it down or selected a vendor, that’s when you deploy the security questionnaire. This lets you take a deep dive into how they handle security, privacy, and compliance – ensuring they won’t put your company at risk.
For existing vendors, especially those already integrated into your ecosystem, there’s typically no need to go back to the RFP stage. Instead, a security questionnaire will help you maintain visibility into their current security posture and address any changes that may impact your compliance obligations.
When you’re dealing with high-risk vendors – think those that process sensitive customer data or have access to critical infrastructure – you’ll definitely want to do both. And do it regularly. An RFP lets you evaluate alternative vendors, while a security questionnaire ensures ongoing due diligence – so it’s really the best of both worlds.
As your vendor list grows, managing risk can quickly become overwhelming. That’s why automation is essential. Scytale streamlines vendor risk management from start to finish. Whether you’re sending your first RFP or buried in spreadsheets, Scytale simplifies the process and ensures you – and your vendors – stay secure and compliant.
FAQs
What is a vendor assessment?
A vendor assessment is the process of evaluating a third-party provider’s capabilities, including their security, compliance, and operational practices, to determine whether they pose any risk to your business.
What are the requirements for vendor assessment?
Vendor assessment requirements typically include reviewing the vendor’s security policies, compliance status, data handling practices, and financial stability. Companies often use tools like RFPs and security questionnaires to gather this information and make informed decisions about who they choose to work with.
How often should vendor risk assessments be conducted?
Vendor risk assessments should be conducted at least annually or whenever there’s a significant change in the vendor’s service, security posture, or your own compliance needs.
