Vendor risk assessment aims to protect an enterprise from business risks associated with third party contracts and helps safeguard its assets. Organizations in the banking and financial services industry already perform vendor risk management. However, increasing cyber threats are forcing other industries such as retail, logistics, and transportation to follow.
While risk assessments are important for regulatory compliance, growing enterprises should regularly assess third party vendors.
An automated risk assessment system is easy and simple to manage, and allows better governance through dashboards and regular updates. It is also effective when managing a large number of vendors.
This paper discusses the significance of performing vendor risk assessment and highlight its benefits. It also compares manual and automated assessment processes.