What is Vendor Risk Management?

Vendor Risk Management (VRM) is the process of assessing, monitoring, and mitigating risks associated with external vendors that provide products or services to your organization. As businesses rely on vendors for critical functions, the risks related to data security, compliance, operational resilience, and financial stability increase. A well-structured VRM program ensures that vendors align with your organization’s security and compliance requirements, reducing potential exposure to risk.

Vendor Risk Management

Why is Vendor Risk Management Important?

• Regulatory Compliance – Many industries (e.g., SOC 2, HIPAA, ISO 27001, GDPR, GLBA) require organizations to assess vendor security and compliance to protect sensitive data.

• Data Security & Privacy Risks – Vendors often have access to company data or systems, making them potential security threats if not properly vetted.

• Operational Resilience – Vendor failures can disrupt essential business operations, supply chains, and service delivery.

• Reputation & Financial Risks – A vendor-related security breach or compliance failure can damage your company’s reputation and result in financial penalties.

With our Vendor Risk Management services, we help organizations build a structured framework to evaluate, monitor, and mitigate vendor-related risks—ensuring that your vendors meet security and compliance expectations while supporting business continuity.