In today’s business environment, it is not uncommon for a growing company to focus on its core proposition and outsource activity to third-party vendors. This often leads to an increase in the number of vendors and, as a result, an increase in risk. These risks can include data breaches, data exposure, and non-compliance with regulations such as GDPR.
If a company does not have Vendor Risk Management in place, it is likely that it has a high level of unmanaged risk leaking out through their suppliers.
Asking the following questions can help you determine if your company is at risk:
The Importance of Vendor Risk Management (VRM)
VRM is crucially important because it helps companies to identify, assess, and mitigate risks associated with third-party relationships. By understanding the risks involved with using third-party vendors, companies can take vital steps to safeguard the organisation from potential disasters.
There are several benefits of vendor risk management, including:
By taking the correct steps to mitigate these risks, businesses can improve their overall security and compliance with regulations. Implementing a vendor risk management program can also help businesses save money by avoiding costly disasters down the road.
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