thinQmaster Virtual testing partner Adaptive practice exams that find your weak spots and drill them. Every answer explained. From $69
Enroll

thinQmaster

Find your exam

Five questions free, before you decide.

Step 1 · choose a vendor

In one of our camps? Your practice exams come with the tuition — they are on your study page already.

Governance, Risk, Audit & Privacy · Intermediate

Vendor Due Diligence

Pre-contract evaluation of a vendor's security, privacy, financial, operational, and compliance posture.

Definition

Due diligence scales with vendor risk tier and may include questionnaires, SOC reports or certifications, penetration test summaries, financial reviews, sanctions screening, and onsite assessments. Findings feed contract terms and remediation requirements before onboarding.

Example

Before signing with a payroll SaaS, the company reviews its SOC 1 and SOC 2 Type 2 reports and cyber insurance coverage.

Exam tip

Due diligence should occur before contract signature, when leverage is greatest.

Related terms