3rd Party Toolbox – Vendor Risk Management
Vendor Risk Management (VRM)
VENDOR RISK MANAGEMENT is the process used to identify, measure, monitor and mitigate the risks associated with outsourcing services the third parties. However, a haphazard approach and lack of standard framework and methodology can result in disastrous consequences for the institution and its customers.
Still struggling with assessing Inherent Risk (risk before controls) and Residual Risk (risk after controls)?
Asking too many questions or too few or the wrong ones?
Do the questions vary based upon who is asking them on any given day?
And what about criticality? How are you defining THAT?
Vendor Risk Management (VRM) is the process used to identify, measure, monitor and mitigate the risks associated with outsourcing services to 3rd parties. Vendor Risk Management provides significant advantages including:
Protecting data, systems, customers
Protecting your reputation
Ensuring resilience
Managing costs
3rd Party Toolbox (3PT) Category Management provides a “build it once, apply to many” function for ease and consistency of assessing risk of all vendors within the same service category.
- Identify elevated risk before you sign a contract
- Know Your Vendor – understand who you’re doing business with before you sign a contract
- Determine where your risks are concentrated, category by category across the entire vendor inventory
- Compare Vendor Inherent and Residual Risk ratings across the entire vendor inventory, by category and by vendor
3rd Party Toolbox (3PT) provides a standard framework and methodology to easily, quickly and consistently assess Inherent Risk, Criticality and Residual Risk regardless of who is assessing the vendor. 3PT comes with pre-configured and fully editable questionnaires for 15 vendor categories ensuring that you are asking the right questions and properly assessing risk. You can add your own categories and questions and edit ours.