Vendor Risk Management

Vendor Risk Management (VRM) is a comprehensive, enterprise-wide initiative designed to assess and mitigate potential risks associated with third-party vendors. VRM analyzes vendor behavior, access, and operational practices to ensure that vendors do not pose threats that could disrupt the business operations of an enterprise. The primary goal is to proactively identify and manage risks, safeguarding the organization from various potential challenges.

Common risk factors addressed by VRM include business continuity risk, information security risk, operational risk, regulatory risk, financial risk, and the risk of damage to the organization's reputation. In today's dynamic business environment, characterized by volatility, uncertainty, complexity, and ambiguity (VUCA), VRM plays a crucial role in securing the supply chain, particularly concerning suppliers of direct materials essential to global production lines.

Learn more about Ivalua's Vendor Risk Management Software Solutions.