Overview
Vendor Communication and Oversight is the process of formally communicating security and compliance expectations to third-party vendors and monitoring their adherence on a recurring basis. It ensures vendors that impact systems and data are identified, reviewed, and managed in alignment with SOC 2 CC9 risk mitigation requirements.
Step-by-Step Process
Identify in-scope vendors
The Security Lead reviews the current vendor inventory to identify vendors that access, process, or store company data or systems. In-scope vendors are flagged for quarterly communication and oversight, and the updated list is saved as the working vendor register.
Role: Security Lead
Confirm vendor risk classification
For each in-scope vendor, the Security Lead verifies the assigned risk tier (e.g., high, medium, low) based on data sensitivity and access level. Any changes in service scope or data access are documented and approved before proceeding.
Role: Security Lead
Prepare vendor communication materials
The Security Lead prepares standardized communication templates requesting updated security documentation, incident disclosures, and compliance attestations. Templates are reviewed to ensure they reference current SOC 2 and contractual requirements.
Role: Security Lead
Distribute quarterly vendor communications
The Security Lead sends the approved communication to vendor contacts and records the date sent and response deadline. All communications are tracked to ensure follow-up occurs for non-responsive vendors.
Role: Security Lead
Collect and log vendor responses
Received vendor responses and attachments are reviewed for completeness and saved to the vendor oversight repository. The Security Lead logs receipt dates and notes any gaps or exceptions identified.
Role: Security Lead
Escalate and remediate issues
If a vendor fails to respond or provides inadequate assurance, the Security Lead escalates the issue to Procurement or Legal as required. Remediation actions, including corrective plans or vendor replacement decisions, are documented.
Role: Security Lead
Complete quarterly oversight review
The Security Lead finalizes the quarterly review by confirming all in-scope vendors have documented outcomes. A summary of vendor status and issues is retained as evidence for SOC 2 audits.
Role: Security Lead
What You Need Before Starting
- Current vendor inventory with service descriptions
- Vendor risk classification criteria
- Approved vendor communication templates
- Access to email, spreadsheet, and Slack tools
Evidence Your Auditor Expects
- Dated vendor inventory spreadsheet showing in-scope vendors for the quarter
- Sent email records or Slack message timestamps requesting vendor assurances
- Vendor-provided security documents with received dates (e.g., SOC reports, questionnaires)
- Quarterly vendor oversight summary document dated and approved by the Security Lead
How This Looks In Your Tools
Using Gmail, go to Settings > See all settings > Advanced and enable Templates if not already enabled. Draft a standard vendor communication email, then click the three-dot menu in the compose window > Templates > Save draft as template.
To send communications, open Gmail > Compose, select the saved template, and populate vendor-specific details. After sending, open the Sent folder, open the message, and use the three-dot menu > Show original to capture the sent timestamp for evidence.
Track responses by applying a dedicated label (e.g., “Vendor Q2 Review”) via the message toolbar > Label icon, and periodically review the label to identify non-responses.
Spreadsheet
In Google Sheets, create or open the Vendor Oversight Tracker and add columns for Vendor Name, Risk Tier, Date Sent, Response Received (Y/N), Issues Identified, and Review Quarter. Share the sheet with view or edit access limited to the Security team.
Update the Date Sent column immediately after communications are sent, and enter the response date once documentation is received. Use Data > Data validation to restrict Response Received values to Y/N for consistency.
At quarter end, filter the Review Quarter column using Data > Create a filter to generate the final oversight summary, then download the file via File > Download > PDF for audit evidence.
Slack
Create a private channel by selecting Channels > Create new channel and name it “vendor-oversight.” Invite relevant internal stakeholders such as Security and Procurement.
Send vendor-related follow-ups internally using message links to emails or stored documents, and use the message menu > Add reminder to set follow-up dates for non-responsive vendors.
For evidence, open the relevant message, click the three-dot menu > Copy link, and record the link and timestamp in the vendor oversight spreadsheet to demonstrate monitoring activity.
Common Audit Findings
- Incomplete vendor inventory
- This occurs when new vendors are onboarded without being added to the oversight process. Prevent it by requiring quarterly reconciliation between procurement records and the vendor inventory.
- Missing evidence of vendor follow-up
- Auditors often see initial requests sent but no proof of follow-up for non-responses. Use reminders and tracking fields to document all follow-up actions with dates.
- Outdated vendor documentation
- Vendors may provide old SOC reports or attestations that fall outside the review period. Verify document dates during review and request updated materials when necessary.
- Lack of documented issue escalation
- Issues are sometimes resolved informally without records. Document all escalations and remediation decisions in writing to demonstrate effective oversight.