Vendor Risk Management

Vendor Risk Management (VRM) programs and technology traditionally support initiatives to protect sensitive, personal, or proprietary customer and enterprise information. Today, forward-thinking enterprises are stretching the definition and role of VRM, to determine vendor criticality to the business, improve vendor relationships and processes and report on security & compliance across the extended enterprise ecosystem.

The increasing use of outsourcing and cloud computing means that vendors are now playing a fundamental role in the delivery of services to the end-user.  Effective vendor management has become an essential competency for every organization and extending deep into Information Technology (IT); arguably as important as any internal technology, service management, or program management capability.

In addition to corporate vendor management programs, an increasing number of enterprises are deploying a dedicated IT Vendor Management Office responsible for overseeing the entire vendor lifecycle and for “bridging the gap” between IT and the corporate procurement organizations.  This decision enables stronger vendor relationships that drive strategic organizational benefits including transparency for instituting changes from vendors, satisfying regulatory recommendations and findings, extending the information security profile of the organization, and providing a platform for growth of new products and services.  Establishing a baseline for a vendor’s risk profile, mandatory information security and reliability of their technology is critical for companies that leverage data or technology from vendors.

Vistrada has helped clients define, build, and apply a consistent global vendor management policy.  We derive plans to help companies establish and adhere to firm wide policy requirements by assessing and establishing vendor risk profiles, identifying and recording specific risks including the technology risks, establishing risk management remediation plans, executing vendor management training and maintaining vendor risk profiles.

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