An Explanation Of What Vendor Risk Management Is
An inevitable risk that organizations must deal with in the modern business world is that posed by the other companies with which they do business as a means of their normal operating procedures. Third-party companies which provide goods and services, (vendors), to your organization will almost certainly require access to differing amounts of sensitive information or data in order to properly provide you with the good or service required. Vendor Risk Management, or VRM, is a means by which it can be determined which of your vendors may be risky to continue doing business with.
Some vendors will be more risky than others – it all depends on the good or service they provide, and the type of information they require from your company in order to carry out their obligations. Factors to take into account when developing a strong Vender Risk Management strategy should include items such as:
- Contractual definitions of the vendor-client relationship
- The establishment of guidelines to govern the accessibility of any information between the parties
- The establishment of standards to meet all regulatory compliance guidelines
- Continual monitoring of the vendor’s ability to meet the terms of this policy
The Many Benefits Of Vendor Risk Management
Unless you run a business devoid of any necessary vendor entities as a part of your business processes, your company should establish guidelines such as the above in order to ensure that any and all sensitive information which might be shared between your organizations remains as private and protected as possible. Just because the information may have temporarily changed hands, that doesn’t mean that your company is not still responsible for its continued security. In most, if not all, cases, the loss of sensitive information by a vendor is treated the same as though it had been your company responsible for the loss.
A Vendor Risk Management assessment from the Information Security Specialists here at Ezentria will work with you to compile a complete report of all your vendors in need of examination. When the assessment is completed, you will be provided with a detailed list of these vendors and any findings against them. The end result is a ranked list of which, if any, of your company’s vendors pose a threat to your vital information. Our Information Security Services team will then suggest any possible solutions to address this hazard to your Vendor Management information security.