Compliance questionnaires are used to assess vendor risk, ensure regulatory compliance, and satisfy cyber-insurance and contract obligations. Don’t worry, these questionnaires assess risk posture and don’t require perfection to complete. They are common in many industries including financial services, healthcare, restaurants, non-profits, and state-regulated businesses, and are often reused across industries with minor changes.
Let’s first dive into the purpose of these questionnaires and give some context to the questions. Broadly, they assess whether a business has a base level of repeatable controls in place to protect their data, reduce risk, ensure system uptime, and respond quickly to mishaps.
What Compliance Questionnaires Measure
- Access Controls
How users are granted access, managed, and restricted from data.
Compliance questionnaires commonly ask how user accounts are created, modified, and removed, particularly when employees change roles or leave the organization. This ensures that employee access is limited only to necessary systems and data, as outlined by the National Institute of Standards and Technology (NIST) Access Control Guidance.
Organizations are asked about their password management, how they ensure password standards, and how they store passwords. Password requirements are consistent with NIST Digital Identity Guidelines which define modern password best practices.
Organizations are also asked about multi-factor authentication (MFA) practices for remote access, admin accounts, and cloud services. MFA significantly reduces data security risks by requiring multiple forms of authentication in addition to login credentials.
- Data Protection
Compliance questionnaires cover topics like data backups, encryption, storage practices, and data transfer. Encryption is a foundational control that should be used by any business that stores sensitive data. Organizations are also asked about how long data is kept, and how the data is disposed of when no longer needed. Frameworks like the NIST Cryptographic Standards and Guidelines can be helpful to determine if your business is up to standards.
- Monitoring & Logging
Most questionnaires ask how systems generate and maintain logs for user activity, authentication changes, and system events. Organizations will be asked about log retention timeframes to ensure data is available for audits when necessary. Retention requirements change based on industry and are fully outlined in the NIST SP 800-53 Audit and Accountability controls.
Organizations are also asked about log review for unusual, potentially malicious behavior. This will determine a business’s ability to assess unusual activity. Businesses that handle sensitive information generally work with Managed IT Support teams for threat monitoring and cybersecurity, but the guidelines are available in the NIST Cybersecurity Framework Detect function.
- Incident Response
Compliance questionnaires ask about incident response plans and documentation. Organizations are often asked how incident communication is handled, who is notified, and what incidents are documented.
Reference:
NIST SP 800-61 Rev. 2 – Computer Security Incident Handling Guide
https://csrc.nist.gov/pubs/sp/800/61/r2/final
- Vendor & Third-Party Management
Organizations are asked about which third-party or cloud providers are used to transmit, process, and store data. They are also asked how they onboard and assess vendor security practices, and how they share responsibilities with vendors.
Reference:
AWS Shared Responsibility Model Overview
https://aws.amazon.com/compliance/shared-responsibility-model/
Though specific questions vary by industry, these control areas appear in every compliance questionnaire.
Why Businesses Fail Compliance Questionnaires
So, why do businesses fail compliance questionnaires? It’s not negligence or recklessness; they just misunderstand how questions are evaluated and what the reviewer is looking for. It’s important to understand that all relevant information contained in compliance questionnaires is subject to validation, requiring documentation, evidence, or technical clarity that many businesses aren’t prepared for.
Answering “Yes” Without Evidence
Answering “Yes” confirms that both a control exists and that it can be demonstrated. All compliance questionnaires are subject to validation either during or after the audit. Businesses can expect to be asked for supporting evidence, such as:
- Written policies
- Configuration screenshots
- Access control lists
- Security logs or reports
Answering “Yes” without evidence doesn’t automatically mean failure but can cause issues if evidence is requested. It is recommended that businesses offer evidence proactively when possible. Use phrases like:
- “Yes – documented policy available”
- “Yes – evidence available upon request”
Reference:
NIST SP 800-53 Rev. 5 – Security and Privacy Controls
https://csrc.nist.gov/publications/detail/sp/800-53/rev-5/final
Confusing Policy with Reality
Policies are great, but they don’t always confirm that a control is technically enforced. This can be confusing, because questionnaires often bundle multiple assumptions into a single question, like, “Is MFA enforced for all users?”. Though questions can be asked about policy, reviewers may compare written policy with actual system behavior. It’s important to consider the difference between intent and execution in your business.
Reference:
NIST Cybersecurity Framework (CSF)
https://www.nist.gov/cyberframework
How to Answer Honestly Without Failing
Completing your questionnaire isn’t impossible, but it’s important to take your time and try to understand the purpose of each question. Always answer honestly and provide evidence when possible. Don’t be overly detailed either; make sure to only provide what the question requires, nothing more. Reading instructions clearly can save you time down the road; make sure to understand the question fully before beginning to answer. As you move through the questions, keep an eye out for “gotcha” questions crafted to trip you up.
It’s also important to answer based on current-state reality, not future plans. Businesses often fail questionnaires by describing controls they intend to implement rather than those already in place. If a control is actively being rolled out, state that clearly using language like:
- “In progress, targeted completion Q2”
- “Implemented for administrative accounts; rollout to standard users underway”
This shows maturity and transparency without misrepresenting your environment.
When a question feels unclear, resist the urge to guess. Many questionnaires allow for commentary fields, which are ideal for clarifying assumptions or definitions. For example, if a question asks about “critical systems” or “sensitive data,” briefly define what those terms mean in your environment. This helps align expectations and reduces the chance of follow-up questions or misinterpretation.
Additionally, compliance questionnaires often require additional artifacts. Including relevant reports in your answers enhances your credibility while also providing evidence of your answers. Transparency often reduces follow-up questions and improves clarity during review.
Many businesses will benefit from consulting with industry experts when filling out compliance questionnaires. It can take time to get these questionnaires right, so working with industry experts who are familiar with compliance policies can save businesses many hours of work. Luckily, the consulting team at ITGuys is well-versed in compliance and is here to help with anything you need, from compliance consulting to IT support.
Frequently Asked Questions (FAQ)
Are compliance questionnaires legally binding?
Compliance questionnaires are not laws, but the answers you provide may be relied on by vendors, insurers, or partners. In some cases, responses can be referenced in contracts or audits, which is why accuracy and clear wording matter.
Who should fill out an IT compliance questionnaire?
Most compliance questionnaires should be completed collaboratively. IT teams understand technical controls, leadership understands business operations, and compliance or legal advisors help interpret obligations. Having only one person complete the questionnaire often leads to errors or gaps.
Can small businesses fail compliance questionnaires?
Yes. Company size does not exempt a business from compliance expectations. While requirements are often scaled to risk, questionnaires typically assess whether reasonable safeguards are in place, not whether a business is large or small.
Is it risky to answer “yes” if a control isn’t fully implemented?
It can be. Many questionnaires assume that a “yes” answer means the control is currently in place and enforced. If a control is partial or limited, it is usually safer to explain the scope rather than overstate maturity.
Are “Not Applicable” answers acceptable?
Yes, when they are clearly justified. Most questionnaires allow “Not Applicable” responses, especially when a system, data type, or process does not exist in your environment.
Why do the same compliance questions appear across different industries?
Most questionnaires are built on shared security frameworks, such as NIST, ISO 27001, or SOC 2 concepts. Industry-specific requirements are typically layered on top, which is why core questions repeat across healthcare, finance, nonprofits, and other sectors.
Do state privacy laws affect compliance questionnaires?
Often, yes. State privacy laws may influence breach response, data handling, and disclosure expectations, even if the questionnaire does not name a specific statute. Many questionnaires indirectly reflect state-level requirements.
What happens after a compliance questionnaire is submitted?
After submission, organizations may request clarifications, supporting evidence, or documentation. In some cases, answers are used for risk scoring or to establish baseline expectations for future reviews.
Can you update answers later if your environment changes?
Sometimes. Some organizations allow updates or re-submissions, while others treat responses as a snapshot in time. This is why it’s important not to commit to controls that are planned but not yet implemented.
Are compliance questionnaires about passing or failing?
Typically, no. Most questionnaires are designed to assess risk, not to determine perfection or issue certifications. The goal is to understand how a business manages security and where controls may differ from expectations.
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