Why Enterprise Software Deals Now Require a Vendor Risk Tiering System

Episode notes

Episode 62 of B2B SaaS Talks with Fexingo dives into vendor risk tiering - the new procurement requirement that forces software vendors to self-classify into risk tiers (critical, high, medium, low) based on data sensitivity, system criticality, and compliance footprint. Lucas explains how banks like JPMorgan and insurers like Aetna now mandate tiering questionnaires before even scheduling a demo. Luna challenges whether tiering creates a two-tier market where small vendors get stuck in 'high risk' regardless of their actual security posture. They discuss the specific data fields tiering requests demand (encryption standards, sub-processor lists, breach history), the operational lift for a 50-person startup, and what reps should have ready before the RFP stage. A concrete look at how procurement is forcing standardization on an industry that still runs on spreadsheets and trust.

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