Introduction

Small and medium-sized enterprises (MSMEs) increasingly find themselves facing a challenging hurdle when pursuing business opportunities with larger organizations: complex vendor compliance questionnaires and security assessments. While these compliance requirements serve important risk management purposes for enterprise clients, they often present a significant burden for smaller businesses that lack dedicated compliance teams or formal documentation of their security practices.

This article presents a systematic approach for MSMEs to build compliance capabilities that satisfy enterprise requirements without overwhelming their limited resources, drawing on practical elements from ITIL4 and ISO27001 frameworks.

Understanding the Challenge

Enterprise vendor onboarding typically involves detailed assessments covering:

  • Information security policies and procedures
  • Access control mechanisms
  • Business continuity planning
  • Incident response capabilities
  • Data protection measures
  • Third-party risk management
  • Compliance with industry regulations

For MSMEs, responding to these questionnaires often reveals gaps in formal documentation and processes rather than actual security deficiencies. The challenge lies not in creating secure practices but in demonstrating them through the structured evidence that larger organizations expect.

A Phased Approach to Compliance Readiness

Phase 1: Assessment and Prioritization

Begin by understanding your current position and the specific requirements of your target clients:

  1. Collect sample questionnaires from prospective enterprise clients or industry sources
  2. Identify common requirements across multiple potential clients
  3. Conduct a gap analysis between your current practices and documented requirements
  4. Categorize requirements by importance and implementation complexity

Drawing from ITIL4’s focus on value streams, prioritize requirements that deliver the most value in terms of winning business while requiring the least effort to implement.

Phase 2: Establish Core Documentation

Create a foundational set of policies and procedures that address the most commonly requested requirements:

  1. Information Security Policy: A high-level document outlining your company’s approach to security
  2. Acceptable Use Policy: Guidelines for proper use of company IT resources
  3. Data Classification Policy: How you categorize and protect different types of information
  4. Incident Response Plan: Procedures for handling security incidents
  5. Business Continuity Plan: How operations continue during disruptions

ISO27001’s Annex A1 provides an excellent framework for organizing these documents. While full certification may not be necessary, using this structure ensures comprehensive coverage of security domains.

Phase 3: Implement Basic Technical Controls

Deploy fundamental security controls that meet common requirements:

  1. Access management system: Document how user accounts are created, modified, and terminated
  2. Password policy enforcement: Implement and document strong password requirements
  3. Data backup procedures: Establish regular backup processes with testing
  4. Endpoint protection: Deploy and document antivirus and security update procedures
  5. Network security: Implement basic firewall and network segmentation

ITIL4’s practice of “Information security management” provides guidance on integrating these controls into your overall service management approach.

Phase 4: Develop a Compliance Response Package

Create a reusable set of materials for responding to vendor assessments:

  1. Standard response template: Pre-written answers to common questions
  2. Evidence portfolio: Screenshots, configuration files, and other supporting documentation
  3. Policy repository: Organized collection of all formal policies and procedures
  4. Compliance statement: Executive-level summary of your security program

This package becomes your toolkit for efficiently responding to questionnaires, allowing you to customize responses while maintaining consistency.

1: ISO/IEC 27001:2022, Information security, cybersecurity and privacy protection — Information security management systems — Requirements, Annex A (Controls reference)

Leveraging Technology Solutions for Compliance Management

Several affordable tools can help MSMEs manage compliance more efficiently:

Documentation Management

  • Document management systems: SharePoint, Google Workspace, or Confluence for centralized policy storage
  • Policy management tools: Specialized software like PowerDMS, Xoralia Policy Management Software, or PolicyTech for smaller organizations

Security Implementation

  • Cloud security services: Microsoft 365 Security Center or Google Workspace security features
  • Endpoint protection: Managed antivirus solutions with central reporting
  • Identity management: Single sign-on solutions like Okta or OneLogin (with starter plans)

Compliance Management

  • GRC platforms: SimplifySO or Apptega for smaller organizations
  • Assessment management: Platforms like OneTrust or Vanta that offer startup-friendly pricing tiers
  • Security questionnaire automation: Tools like SecurityScorecard or HyperComply

Adopting ISO27001 and ITIL4 as a Framework, Not a Destination

While full ISO27001 certification may be beyond the immediate needs of many MSMEs, using its framework provides several advantages:

  1. Structured approach: Clear categories for organizing security controls
  2. Risk-based methodology: Focus resources on your most significant risks
  3. Continuous improvement: Build capabilities over time rather than all at once
  4. Market recognition: Demonstrate commitment to security even without certification

Consider adopting ISO27001’s Plan-Do-Check-Act cycle to gradually improve your security posture in alignment with business priorities.

2: All names of tools and platforms are purely mentioned as examples, and no implied recommendations are being made for any

ITIL4’s Value-Driven Approach

ITIL4 offers valuable perspectives for MSMEs building compliance capabilities:

  1. Service value system: Focus on how compliance activities deliver business value
  2. Continual improvement: Gradually enhance capabilities rather than seeking perfection
  3. Holistic approach: Consider how security integrates with overall operations
  4. Pragmatic implementation: Adapt practices to your organization’s size and complexity

The ITIL4 guiding principle of “progress iteratively with feedback” is particularly relevant—start with minimal viable compliance and improve based on client feedback.

Practical Next Steps for MSMEs

  1. Start with one target client: Obtain their vendor assessment and use it as your blueprint
  2. Implement in phases: Begin with the most commonly requested requirements
  3. Leverage existing resources: Many security controls may already exist but need documentation
  4. Consider professional guidance: Engage consultants for initial setup, then maintain internally
  5. Build gradually: Implement continuous improvement rather than attempting perfection

Conclusion

For MSMEs, enterprise compliance requirements may initially seem daunting, but with a systematic approach drawing on ITIL4 and ISO27001 principles, smaller organizations can build compliance capabilities that open doors to larger clients.

The key is to view compliance not as a burdensome checkbox exercise but as a strategic capability that differentiates your business and enables growth. By focusing on the most valuable requirements first and gradually building your compliance program, even small organizations can successfully navigate enterprise vendor requirements.