8 Info Questions Start-Ups Need to Ask Their Vendors & Contractors

In today’s digital-first world, startups face unique challenges when it comes to managing their information securely and responsibly. Partnering with vendors—whether they are hosting providers, IP lawyers, or SaaS platforms—introduces third-party risks that can affect compliance, security, and data governance. To safeguard your business and ensure your vendors align with your values, asking the right questions is essential. Here are the top Information Governance (InfoGov) questions every startup should ask their vendors.

1. Are you compliant with industry standards and regulations?

Startups often operate in highly regulated industries, making compliance a top priority. Your vendors should adhere to standards like GDPR, CCPA, or HIPAA, depending on your industry and location. Request documentation of their compliance certifications or audit reports to verify their claims.

Why it matters: Non-compliance by your vendor can result in hefty fines and damage to your reputation.

2. How do you secure and manage data?

Understanding how vendors handle your sensitive information is critical. Ask about their data encryption policies for information at rest and in transit, as well as their access controls. Ensure they have measures in place to monitor and prevent unauthorized access.

Key considerations:

1. What security frameworks or tools do they use?
2. How do they classify, store, and back up data?

Why it matters: A robust data security strategy protects your company’s intellectual property and customer data from breaches.

3. What is your incident response plan?

Data breaches and cyberattacks can happen, even with the most secure systems. Vendors must have a clear and tested incident response plan to minimize damage and ensure timely communication.

Questions to ask:

1. How quickly will you notify us of a breach?
2. What steps will you take to mitigate the impact?
3. Have you experienced any security incidents in the past, and how were they resolved?

Why it matters: A well-defined plan ensures you’re not left scrambling in the wake of an incident.

4. How do you manage records and information?

Records management is a core component of Information Governance. Vendors should have clear policies on how they classify, store, retain, and dispose of records to ensure compliance and data integrity.

Key questions:

1. What is your records retention policy, and how does it align with industry standards?
2. How do you manage the classification and secure storage of records?
3. What processes are in place for the secure disposal of outdated or unnecessary records?

Why it matters: Proper records management ensures legal compliance, mitigates risks, and supports your organization’s operational needs.

5. Do you use subcontractors or third parties?

Many vendors rely on subcontractors or additional vendors to deliver services. This adds complexity and risk to your InfoGov strategy. Ensure your primary vendor has strong oversight and compliance standards for any third parties they work with.

Ask them:

1. Who are your key subcontractors, and what roles do they play?
2. How do you assess and monitor their security practices?

Why it matters: A chain is only as strong as its weakest link, and subcontractors can introduce unforeseen vulnerabilities.

6. How do you handle data ownership and termination?

Ensure you retain ownership of your data throughout the engagement. Ask about data return and destruction policies when the contract ends. Vendors should also clarify their approach to data retention and disposal.

Key questions:

1. What happens to our data if we end the contract?
2. Can you guarantee secure deletion of data?

Why it matters: Clear policies reduce the risk of data being mishandled after termination.

7. Can we audit your InfoGov practices?

Transparency is vital in any vendor relationship. Ask if you can conduct periodic audits or receive reports on their InfoGov practices. Vendors should be open to sharing their risk assessments and compliance efforts.

Why it matters: Audits help you confirm that vendors meet your InfoGov expectations and regulatory requirements.

8. What is your business continuity plan?

Startups rely heavily on vendors for critical operations. Ensure they have a business continuity and disaster recovery plan to minimize downtime in case of disruptions like natural disasters or system failures.

Ask about:

1. Backup and recovery processes
2. System redundancy and failover capabilities

Why it matters: A resilient vendor ensures your operations remain uninterrupted during unforeseen events.

Why These Questions Matter for Startups

Startups often operate with lean teams and limited resources, making vendor relationships a cornerstone of their business strategy. However, third-party risks can have significant consequences, including regulatory fines, operational disruptions, and reputational damage. By asking these InfoGov-focused questions, you can mitigate risks and build stronger, more secure vendor partnerships.

At InfoGov.com, our INFOADVISORs empower startups to implement robust Information Governance practices that drive trust and compliance. Start the conversation with your vendors today and safeguard your business for the future.