Gain a 360-degree view of third-party risk by using our SaaS software to centralize, track, automate, assess and report on your vendors. 

Managed Services

Let us handle the manual labor of third-party risk management by collaborating with our experts to reduce the workload and mature your program. 

Document Collection
Policy/Program Template/Consulting
Virtual Vendor Management Office
Vendor Site Audit

Ongoing Monitoring

Let us handle the manual labor of third-party risk management by collaborating with our experts.

Venminder Exchange

As Venminder completes assessments for clients on new vendors, they are then made available inside the Venminder Exchange for you to preview scores and purchase as you need.


Use Cases

Learn more on how customers are using Venminder to transform their third-party risk management programs. 


Venminder is used by organizations of all sizes in all industries to mitigate vendor risk and streamline processes

Why Venminder

We focus on the needs of our customers by working closely and creating a collaborative partnership

Sample Vendor Risk Assessments

Venminder experts complete 30,000 vendor risk assessments annually. Download samples to see how outsourcing to Venminder can reduce your workload.



Venminder is an industry recognized leader of third-party risk management solutions. 

Our Customers

900 organizations use Venminder today to proactively manage and mitigate vendor risks.

Get Engaged

We provide lots of ways for you to stay up-to-date on the latest best practices and trends.

Gartner 2020
Venminder received high scores in the Gartner Critical Capabilities for IT Vendor Risk Management Tools 2021 Report



Trends, best practices and insights to keep you current in your knowledge of third-party risk.


Earn CPE credit and stay current on the latest best practices and trends in third-party risk management.  

See Upcoming Webinars

On-Demand Webinars



Join a free community dedicated to third-party risk professionals where you can network with your peers. 

Weekly Newsletter

Receive the popular Third Party Thursday newsletter into your inbox every Thursday with the latest and greatest updates.



Venminder Samples

Download samples of Venminder's vendor risk assessments and see how we can help reduce the workload. 

State of Third-Party Risk Management 2022

Venminder's sixth annual whitepaper provides insight from a variety of surveyed individuals into how organizations manage third-party risk today.


Red Flags in Critical Vendor SOC Reports

3 min read
Featured Image

When you begin your initial due diligence or regular monitoring of a vendor, one of the first things to do is to request all their SOC reports. You also need to ask for the SOC reports for any critical subservice organizations (fourth parties). This includes both SOC 1 and SOC 2 reports.

Why Do You Need to Request a SOC 1 and SOC 2 Report?

Often times, there’s an overlap of information between the SOC 1 and SOC 2 reports, yet there are some distinct differences. First, SOC 1s have more freedom to include information surrounding specific products and services offered and focus on financial controls.

A SOC 2 is a little stricter in the control requirements as they are laid out based on the Trust Services Criteria selected. The trust services criteria include security, availability, processing integrity, confidentiality and privacy.

Noticing Red Flags in Vendor SOC Reports 

Regardless of whether you’re reviewing a SOC 1 or SOC 2, there are potential red flags to always watch out for which include the following:

  • Words like “inadequate” or “misrepresentation”. Look for them in the Service Auditors Report section.
  • Did the Service Auditor provide a “Qualified Opinion”? This means that there may be some concerns that you should review further.

Other potential red flags to be on the lookout for include: 

  • Report Format – SOC reports follow a standard format. Is that format being followed?
  • Report Date – It’s important to review the most current report available. If the vendor is providing an old report then you will not be able to properly assess controls.
  • Report Variations – This includes inadequate testing, testing 2013 evidence as new, modifying the report or removing pages. All are signs that something is awry.
  • Exceptions – Are there exceptions and are they repeated exceptions from previous reporting periods? If there are exceptions, management should provide a response to them.

Now that you have reviewed the SOC report and identified potential red flags, what do you do? How do you address your concerns and provide evidence of your due diligence? 

How to Address SOC Report Red Flags

Here are some ways to address the red flags found:

  1. Further review management’s response to exceptions in the report, if provided. Is the response adequate, was the exception resolved onsite or were there mitigating controls in place?
  2. Ask the vendor for further clarification. If the exceptions are material, get an official response from the vendor.
  3. Place the vendor on higher frequency monitoring if necessary.
  4. Establish a good communication flow with the vendor.

If you're still uncomfortable or don’t feel as if the vendor has adequately addressed your concerns, then you can work towards modifying the contract upon the next renewal or terminating your relationship with the vendor.

It’s advantageous to your organization to understand the potential red flags that may be present in a vendor’s SOC report. By knowing what to look for you will have a better chance of identifying and addressing issues before they may become a bigger problem.

Want to learn more about properly analyzing a vendor SOC report? Download our eBook

Analyzing a Vendor SOC Report eBook

Subscribe to Venminder

Get expert insights straight to your inbox.

Ready to Get Started?

Schedule a personalized solution demonstration to see if Venminder is a fit for you.

Request a Demo