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Vendor risk management

Take a look at the six types of vendor risks you should look out for

What vendor risks should I look out for?

Vendor risks are becoming more common, as supply chains get bigger and more complex. Organisations increasingly outsource to third party vendors to improve efficiency and save money. These third-party vendors have access to key financial data, customer information and are prone to cyber-security risk, so it’s important to spot the vendor risks to limit their impact on your organisation. Take a look below at six types of vendor risks you should look out for.

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What are the benefits of vendor risk management?

Ensuring you have effective vendor risk management in place, will not only bring benefits to your organisation but helps to boost third party vendor’s performance too. Here are just a few benefits of vendor risk management:

  • Ensures there is accountability for both your own organisation and the vendor’s
  • Increased quality and improvement in services
  • Reduced costs, particularly when thinking about compliance risks that can cause heavy fines
 

Risk mitigation

Procurement and supply organisations won't experience the same risks, but it's important to identify what they are and how to mitigate them.

Risk management key themes

Risk management Contract terms Supply chain Supply chain strategy
Ethical risk Vendor risk assessment Procurement fraud
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