What is an Enterprise Vendor Risk Management Program?

What is an Enterprise Vendor Risk Management Program?What is an Enterprise Vendor Risk Management Program?
AvatarGuest Author asked 2 years ago
What is an Enterprise Vendor Risk Management Program?
1 Answers
Rebecca KappelRebecca Kappel Staff answered 2 years ago
If your company is anything like most companies, It’s quite likely that you outsource to tens or even hundreds of external vendors. Focusing on your core business goals while letting niche companies tackle specialty fields like IT networking, accounting, email marketing, and cloud storage solutions makes a lot of sense. It encourages efficiency and agility in your company’s business processes. At the same time, however, third-party vendors increase your exposure to risk. 

This is why you need an enterprise risk management program.

An enterprise-wide solution to risk management allows you to assess third-party risks in the context of business goals. With this approach, you can more effectively identify risks that pose the greatest danger to your enterprise.

Enterprise Vendor Risk Management vs. Traditional Risk Management

An enterprise vendor risk management program is broader in scope than traditional risk management programs. While legacy risk management solutions were reactive and focused on remediating risks, an enterprise-wide strategy incorporates risk management principles with business strategy to drive performance and resilience in a proactive way.

Benefits of a Vendor Risk Management Program

  • The opportunity to mitigate third-party risks before they actualize
  • Stronger sense of accountability in vendors
  • Cuts costs by stemming incidents that incur heavy financial losses
  • Enforce adherence to regulatory standards
  • Creates a holistic culture of security

Tough but Not Insurmountable

A solid enterprise vendor risk management program can protect the far-flung endpoints of your supply chain. Third-party threats are real and hard to track, but they are not invincible. With a well-developed vendor strategy, you can succeed in monitoring access controls, enforcing strong security policies, and ultimately protecting yourself from data breaches and financial and reputational damage. 

Prioritizing security does not mean you have to give up on productivity. Centraleyes is proof that excellent third and fourth-party risk management can be deployed efficiently and seamlessly to save time and energy so that you can focus on your core business functions.

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