Vendor Risk Management

Organizations today are under immense pressure to operate efficiently and manage risk effectively. Driving efficiencies and cost containment into their business has resulted in the reliance on hundreds, if not thousands of vendors as key partners to meet business objectives. Consequently, one area that is at the forefront of risk management priorities is vendor risk management - managing the risks involved with third-party vendors and the delivery of their products and/or services. Further, many financial services companies face specific regulatory guidelines with regard to their vendor risk management process—it’s no longer enough to perform initial due diligence. Companies must perform regular and programmatic risk assessments of the vendors that support key business processes.

Vendor risk management addresses the risks that could cause a disruption in product and/or service delivery or negatively affect overall business performance. Given the large number of vendors that organizations rely upon today, risk managers need to develop a prioritized list of strategic vendors that contribute significant business value and are difficult and expensive to replace. Putting in place a framework to periodically monitor and measure the effectiveness of vendor risk mitigation and controls will improve business performance and help to minimize disruptions resulting from a vendor’s inability to deliver.

Vendor Risk Management Challenges

Understanding how vendor failure can impact business performance
Enabling a top-down approach to risk assessment while allowing for individual controls group to assess at a more granular level
Providing transparency to the state of the risk across the vendor community
Risk ranking and scoring vendors
Tracking issues that arise during the assessment process
Integrating the vendor risk management program with your overall ERM activities
Ensuring your vendors meet the regulatory requirements established by Federal regulators

Key OpenPages Capabilities for Managing Vendor Risk

Easily configured to your methodology for risk management
Aggregation of risk assessments
Vendor risk rankings for follow-on assessment
Vendor risk assessment surveys
Issues and action items to facilitate remediation plans
Management reporting
Dynamic workflow for review and approval of assessments
Easy-to-use, profile-based user interface
Configurable vendor record templates

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For questions or for more information on OpenPages' Vendor Risk Management solution, please click here or call us at 781.693.5999.