Vendor Risk Management (VRM) and Third-Party Risk Management (TPRM) are programs that organizations employ to assess their relationships with third parties or vendors for potential risks. The most common types of risks an organization will want to evaluate the regulatory, operational, financial, and reputational.
The purpose and function of TPRM and VRM are similar: the core process is to identify, assess, monitor, and mitigate risk.
Several terms (e.g., Third Party Risk Management, Supplier Relationship Management, Vendor Risk Management) are routinely used to assess and manage the risk posed to your organization by outside entities.
In either case, the concept is the same: this is the process by which an organization manages the risks posed by outside companies or other organizations that provide its services or products.
Benefits of Integrating a Vendor Risk Management System
A Third Party and Vendor Risk Management System enables organizations to perform their due diligence, rating their risks based on the information they receive from their vendors and comparing it to required practices. Organizations can access analytics and ‘red flags’ in Vendor activities to identify risks before they negatively affect the company. For example, a decreased quality of Vendor Products and Services or late deliveries could indicate the material or financial issues. Such issues can be overcome through thorough Vendor Assessments in a Vendor Risk Management System.
Third-Party and Vendor Risk Management with Predict360
Ensure business continuity with your vendors and third parties using Predict360’s Vendor Risk Management System. Use Predict360 to mitigate the severity of data breaches involving Third Parties, protecting the Organization’s sensitive data that is shared with third parties and streamlining all Vendors, suppliers, and third parties with just a few clicks of a button. The application enables organizations to monitor and mitigate risk exposure from vendors and consultants by ensuring compliance with applicable policies and procedures, regulatory requirements, and standards.
Predict360 Third Party and Vendor Risk Management manages internal activities associated with vendors and third parties and features:
- Configurable internal Assessments (questionnaires) for internal departments for vendor due diligence to manage external vendors.
- External Assessments for non-system users (third parties and vendors) that capture relevant information about vendor activities with a review workflow.
- Integrated Administration screens to configure Vendor assessments, their types, and vendors’ products and services.
- The ability to configure Vendor Risk Analysis Dimension for Vendor Risks that categorize vendors by risk levels.
- A Vendor Risk Register that captures all necessary information regarding vendors, where multiple documents can be linked, and Vendor Risk Assessments can be initiated. It enables users to create, assign, track and manage any action item or task related to a vendor.
- A workflow process for Vendor Risk Assessments that assigns tasks with due dates and notifications to be reviewed by internal Vendor owners, with the information captured on the Vendor Risk Register having linked compliance questionnaires/checklists to assess it.
- The ability to store all vendor documentation in a dedicated, centralized, and easy-to-access location.