Common Risk Assessment Questions and How to Answer Them

B2B transactions and partnerships drive growth and innovation, but they also carry inherent risks that must be carefully managed for organizational security. Businesses today experience extensive operational disruptions and risks, especially amplified by the rise of Generative AI. Some companies fall victim to security breaches and costly non-compliances, while others manage to innovate and advance. In 2023, there were 3205 data compromising attacks in the U.S. alone, affecting a total of 353 million individuals.

With such inherent risks in B2B transactions, businesses must build trust in order to unlock growth. Your customers and partners need assurance that you will adhere to agreed-upon standards, including data protection regulations, security protocols, and compliance requirements.

The first step in communicating your security posture to customers and vendors is often a security questionnaire.

Common security questions

Questionnaires serve as a critical tool for businesses to assess a potential vendor's security posture. They cover different aspects of security, such as how the organization handles and protects sensitive data, manages regulatory and compliance challenges, and ensures operational resilience throughout the partnership lifecycle.

After answering almost 2 million questions, we’ve collected some of the most frequently asked security questions under different categories. Let’s explore some strategic approaches to address them effectively.

Encryption and key management

With the global average cost of a data breach reaching $4.45 million, businesses face substantial financial and reputational risks from unauthorized access to sensitive information. Effective encryption ensures that data remains unreadable to unauthorized parties, mitigating these risks and safeguarding confidentiality during transmission and storage.

Here are some common questions related to encryption and key management.

• What encryption standards are used to protect data at rest and in transit?
• How are encryption keys generated, stored, and managed, particularly in the context of public key infrastructure (PKI)?
• What key rotation policies are in place to ensure keys are regularly updated?
• How is access to encryption keys controlled and monitored?
• What measures are in place to ensure the secure destruction of old or compromised keys?

Best practices for security, GTM, and GRC teams

• Be specific and detailed: Specify algorithms and protocols used to protect sensitive data. For example, AES-356 encryption is used for data at rest for robust encryption while TLS 1.4 is employed for data in transit across the web, maintaining secure communication channels.
  
• Highlight compliance: Emphasize compliance with relevant regulatory standards. For example, demonstrate how your encryption and key management practices align with GDPR requirements for data protection and ensure FIPS 140-2 compliance for cryptographic hardware.
  
• Illustrate security measures: Describe how keys are securely generated, stored, and destroyed using Hardware Security Modules (HSMs), ensuring they are inaccessible to unauthorized personnel. Highlight the use of role-based access controls (RBAC) and multi-factor authentication (MFA) to restrict key access.
  
• Provide real examples: If possible, include examples or case studies of how encryption and key management have protected data within your organization. For instance, describe a scenario where robust encryption standards, such as symmetric vs. asymmetric encryption, prevented a potential breach, safeguarding sensitive customer information and maintaining regulatory compliance.

Access Control

Sometimes third-party vendors need system access to perform specific business-related tasks. However, it is crucial to limit their access to only what is necessary to minimize potential risks.

The Target data breach in late 2013 affected 40 million credit and debit card accounts. The breach started after attackers gained access to Target’s network through a third-party vendor. Because of lack of role-based access control (RBAC) and improper segmentation, the attackers were able to move laterally across the network.

Listed below are some frequently asked questions about access control security.

• How are user identities verified and authenticated before granting access to systems?
• What role-based access control mechanisms are in place to restrict access based on job function?
• How are access rights and permissions regularly reviewed and updated, emphasizing user access review?
• What systems are used to log and monitor access to sensitive information and systems?
• What processes are in place to immediately revoke access for terminated employees?

Best practices for security, GTM, and GRC teams

• Authentication methods: Clearly explain the use of multi-factor authentication (MFA), which combines multiple verification factors such as passwords, biometric authentication systems, one-time passcodes, single sign-on (SSO) solutions. Additionally, mention OAuth and OpenID Connect for secure and seamless authentication and authorization across multiple platforms.
  
• Outline access controls: Describe RBAC mechanisms in place, including how roles are defined based on job functions and responsibilities, ensuring users have the minimum necessary access to perform their duties. Explain how user access reviews and updates are done to reflect changes in job roles or organizational structure.
  
• Monitoring and logging: Focus on how access to sensitive information and systems is logged and monitored. Highlight the tools used, such as Security Information and Event Management (SIEM) systems, to track and analyze access patterns, detect anomalies, and generate alerts for suspicious activities. This enables timely identification and response to potential security incidents.
  
• Revoking Access: Explain the processes for de-provisioning access for terminated employees. Outline the immediate steps taken to revoke access rights, such as disabling accounts and retrieving access badges. Emphasize the importance of timely de-provisioning to prevent unauthorized access by former employees.

Incident Management

Security incidents can cause operational disruptions for both you and your partners. A robust incident management strategy helps maintain operational resilience and foster assurance between partners. Aligning all parties on incident management practices can significantly reduce the impact of incidents and enhance overall security posture.
We’ve listed some common questions related to incident management.

• What is the organization's incident response plan, and how is it maintained?
• How are security incidents detected and reported?
• What steps are taken to contain and mitigate security incidents once they are identified?
• How is evidence preserved and documented during incident investigations?
• What communication protocols are in place for notifying stakeholders during an incident?

Best practices for security, GTM, and GRC teams

• Incident response plan: Outline the key components of the incident response plan, including detection, reporting, containment, and recovery processes. Detail each phase to ensure a comprehensive approach to handling incidents from identification through resolution. Mention if your organization does regular tabletop exercises for incident response.
  
• Detection and incident reporting: Describe the tools and methods used for detecting incidents, such as intrusion detection systems (IDS), security information and event management (SIEM) systems, and anomaly detection algorithms. Explain the procedures for cyber incident reporting, ensuring that all stakeholders are promptly informed.
  
• Evidence preservation: Explain how evidence is documented and preserved during investigations. Highlight a clear chain of custody, secure storage methods, and comprehensive documentations to ensure evidence integrity.
  
• Communicate protocols: Detail the procedures for internal and external communication during incidents. Outline how stakeholders, employees, customers, and regulatory bodies are informed and updated throughout the incident lifecycle. Emphasize on transparent and timely communication.

Organizational practices and policies

A threat to your vendors is a threat to your organization. Over 15% of breaches reported in Verizon’s 2024 data breach report are due to an attack on third-party vendors and supply chains. Breaches can be prevented by properly assessing vendors and selecting those with better security track records.

For instance, a research in the healthcare industry revealed that the probability of a data breach doubles to 6% for merger targets in the year before and after the consolidation. This statistic highlights the critical need for robust security assessments and integration strategies during mergers and acquisitions.

Here are some frequently asked questions related to organizational practices and policies.

• What security governance structures are in place within the organization?
• How is security responsibility distributed among different roles and departments?
• What security training and awareness programs are provided to employees?
• How are third-party vendors and partners evaluated and managed from a security perspective?
• What policies and procedures are in place to ensure compliance with relevant security standards and regulations?

Best practices for security, GTM, and GRC teams

• Governance structures: Outline the security governance framework and how responsibilities are distributed among different roles and departments. This includes defining the roles of C-suites, security officers, IT team, and compliance officers to ensure clear accountability.
  
• Security awareness training: Provide details on the security training and awareness programs conducted within the organization. Specify the frequency and duration of such training and how employees are educated on latest security threats and effective security risk management.
  
• Vendor management: Describe the process for evaluating and managing third-party vendors from a security perspective. This includes conducting thorough risk assessments, regulatory and compliance standards, and continuously monitoring vendor’s security posture. Mention any vendor risk management solutions that you use to monitor risks.
  
• Security policy enforcement: Explain how security policies are enforced and kept up to date. This involves regular policy reviews, monitoring regulatory changes, and ensuring all employees and vendors comply with these policies.

Network Security

Network security audits play a crucial role in security reviews, identifying vulnerabilities that could potentially disrupt business operations or expose sensitive information. These assessments help secure networks, devices, and data from unauthorized access by uncovering potential attack vectors both inside and outside the internal network.

According to Netscout, there were almost 7.9 million distributed denial-of-service (DDoS) attacks, approximating to 44,000 attacks per day in the first half of 2023 alone, underscoring the importance of such audits. Depending on your industry, regulatory compliance often mandates network security audits. Examples include PCI DSS compliance for credit card processors and HIPAA compliance for healthcare organizations.

Listed below are some common questions related to network security.

• What firewalls and intrusion detection/prevention systems are deployed to protect the network?
• How is network traffic monitored for signs of suspicious activity?
• What segmentation strategies are used to isolate different parts of the network?
• How are remote access and VPN connections secured?
• What measures are in place to protect against network-based attacks such as DDoS?

Best practices for security, GTM, and GRC teams

• Defense mechanisms: Detail the firewalls, intrusion detection/prevention systems (IDS/IPS), and other defense mechanisms deployed to protect the network. Specify any technologies and configurations used to block unauthorized access and detect malicious activities.
  
• Traffic monitoring: Describe the process for network traffic analysis for suspicious activity. Outline the tools used, such as Security Information and Event Management (SIEM) systems, and the processes for analyzing traffic patterns to identify potential threats.
  
• Network segmentation: Explain the network segmentation strategies employed and their benefits, such as limiting the spread of attacks and enhancing security controls for sensitive areas.
  
• Secure remote access: Describe the security measures for remote access and VPN connections. Include details on encryption protocols, multi-factor authentication (MFA), and regular security assessments to ensure secure remote connectivity.
  
• DDoS mitigation and protection: Provide information on DDoS mitigation strategies. Detail the tools and techniques used to detect and mitigate DDoS attacks, ensuring network availability and resilience.

Key considerations for GTM and GRC teams completing security questionnaires

When completing security questionnaires, it's essential for Go-To-Market (GTM) and Governance, Risk, and Compliance (GRC) teams to answer the questions with reliable information. Ensuring clarity, consistency, and verification in your responses not only demonstrates your commitment to security but also builds trust with potential partners and clients.

Here are some key considerations to keep in mind:

• Clarity: Ensure your responses are clear and jargon-free to make them understandable for non-technical stakeholders.
• Consistency: Use consistent terminology throughout your answers to avoid confusion.
• Verification: Offer evidence or documentation that can verify your claims, such as audit reports or certifications.
• Technical details: Include technical details where appropriate to demonstrate the robustness of your security strategy.
• Documentation: Provide examples of policy documents, training materials, and vendor assessment procedures.‍
• Compliance: Highlight compliance with relevant security standards and regulations, such as GDPR, ESG, and NIST.

Streamline your security reviews

Following these practices can enhance the quality of your answers and build trust with your customers. Today, standard security questionnaires contain over 100 questions, with some exceeding over 1000. For instance, the SIG Core features 825 questions and CAIQ contains about 300 questions. Completing these lengthy assessments can often span up to two weeks.

Download our eBook: Navigating Security Questionnaires today to discover proven strategies for faster, more efficient reviews. Gain a competitive edge in vendor security assessments and ensure robust security practices across your partnerships.

Answer questionnaires under 12 hours

At SecurityPal, we understand how important these questionnaires are and how daunting they can get. That’s why we have 150+ globally certified analysts and cutting-edge AI automation tools to help you stay ahead of the process.

Connect with us to see how you can accelerate security reviews with unmatched speed and efficiency.