Small Third-Party Risk Management Team Tips for Collecting Due Diligence

In today’s interconnected business world, companies increasingly rely on third-party vendors, partners, and suppliers. While this opens up growth and efficiency opportunities, it also exposes organizations to third-party risks. For small third-party risk management teams, the challenge is even more daunting — limited staff, tighter budgets, and the pressure to remain compliant with industry standards. 

If you're managing third-party risk management with a lean team, effective due diligence collection is critical. Here are expert-backed tips tailored for small teams to streamline the process without sacrificing quality. 

1. Start with a Clear Risk Segmentation Strategy 

Not every vendor poses the same risk. Start by categorizing vendors based on the nature of the service they provide and the level of access they have to your data or systems. This allows your team to focus due diligence efforts where it matters most. 

Use a vendor risk assessment framework that segments third parties into high, medium, and low-risk tiers. For example, a cloud service provider handling sensitive customer data would require deeper due diligence than a one-time office supplies vendor. 

2. Leverage Automation and Technology Tools 

Manual due diligence collection can be tedious and error-prone. Invest in third-party risk management software like SkyBlackBox, which helps automate vendor onboarding, questionnaire distribution, risk scoring, and document management. 

With SkyBlackBox, small teams can: 

• Send automated due diligence questionnaires 

• Track vendor responses and flag missing data 

• Maintain an auditable trail of risk assessments 

• Generate vendor risk profiles with built-in scoring logic 

Automation allows you to focus on analysis, not chasing paperwork. 

3. Use Standardized Questionnaires and Templates 

Standardize your process with pre-approved templates for different vendor categories. Whether you're evaluating cybersecurity controls, financial stability, or regulatory compliance, having ready-made templates reduces time and improves consistency. 

Look for industry-standard due diligence questionnaires (DDQs) or tailor your own within platforms like SkyBlackBox. 

4. Centralize Documentation and Vendor Profiles 

Scattered documents, spreadsheets, and email threads create confusion and risk. Adopt a centralized vendor management system to store all due diligence files, certifications, and communication logs. 

SkyBlackBox offers a single dashboard where small teams can: 

• Upload and categorize compliance documents 

• Set review timelines and expiration alerts 

• Access historical due diligence for audits 

This central hub keeps your risk documentation organized and accessible.

5. Prioritize High-Risk Vendors First 

With limited time and resources, it’s crucial to address the most critical areas first. Use a risk-based approach to prioritize vendors based on: 

• Access to confidential data 

• Dependency for critical operations 

• Prior incidents or breaches 

For these vendors, perform enhanced due diligence like penetration test reviews, SOC 2 reports, or onsite audits. 

6. Educate Internal Stakeholders Third-party risk management is not a solo effort. Procurement, IT, legal, and business owners must be involved in identifying vendor risks and collecting relevant documents. Train stakeholders to: 

• Flag risky vendors during onboarding 

• Use your vendor due diligence platform 

• Understand regulatory requirements (e.g., GDPR, HIPAA, ISO 27001) 

SkyBlackBox enables team collaboration by assigning tasks and tracking progress across departments. 

7. Schedule Periodic Reviews 

Due diligence isn't a one-time task. Vendors evolve, and so do their risk profiles. Set a schedule for periodic reviews—annually for critical vendors and bi-annually for others. 

Use tools like SkyBlackBox to automate review reminders and track when updates are due. Look for changes in: 

• Ownership or corporate structure 

• Service scope or data access 

• Legal or compliance posture 

8. Keep a Scalable Strategy in Mind 

As your organization grows, so will your third-party network. Adopt a scalable vendor risk management solution early to avoid overwhelming your small team in the future. 

SkyBlackBox is designed for both small and scaling teams, providing flexibility as vendor ecosystems expand. Start with what you need now, but ensure the platform can handle more complex workflows down the line. 

Final Thoughts 

Collecting due diligence with a small team doesn’t have to be overwhelming. By segmenting vendor risk, using smart automation tools like SkyBlackBox, and fostering internal collaboration, small risk management teams can operate just as efficiently and effectively as large enterprises. 

The key lies in strategic prioritization, technology adoption, and standardized processes. With these tips, your small team can confidently manage third-party risks and maintain strong compliance—no matter how many vendors you work with.