Is the Third-Party Questionnaire Dead?

Is the Third-Party Questionnaire Dead?

Recent industry discourse has been dominated by proclamations about the demise of the third-party questionnaire. Numerous articles and statements herald the triumph of data-driven, outside-in approaches, suggesting they have rendered traditional questionnaires obsolete. But are we truly witnessing the final chapter of this risk assessment mainstay?

The answer is more nuanced than the headlines suggest.

While data-driven methodologies have undoubtedly revolutionized third-party risk management, declaring the questionnaire dead may be premature. The reality becomes particularly evident when examining emerging markets like South Africa, where organizations relying solely on outside-in approaches face significant limitations.

The South African market illustrates why questionnaires remain indispensable. Here, the vendor landscape is characterized by numerous local suppliers who operate with limited digital footprints. Many are privately owned enterprises where public financial disclosures are rare, and comprehensive documentation is often scarce. In such environments, external data sources, no matter how sophisticated, simply cannot capture the full risk profile of potential partners.

This challenge isn't unique to South Africa. Across emerging markets and even in developed economies, smaller vendors and niche suppliers often exist beyond the reach of traditional data aggregators. For these entities, the questionnaire serves as a vital bridge, enabling risk professionals to gather critical information that would otherwise remain invisible.

The future of third-party risk assessment likely lies not in choosing between questionnaires and data-driven approaches, but in their strategic integration. Organizations that combine the efficiency of automated data collection with the targeted insights of well-crafted questionnaires will be best positioned to navigate an increasingly complex vendor ecosystem.

Rather than mourning the death of the questionnaire, perhaps we should be celebrating its evolution.