Vendor Risk Management (VRM) is a process that deals with the continued management and assurance that third party vendors and services your company is using do not result in a negative impact on the businesses performance or any type of disruption to the current business workflow. This process is meant to assist in managing and monitoring for potential risks. A risk management program must be methodical and organized to be effective. Due to the ever-changing nature of business in today’s financial markets, cost control and efficiency in supply chains are an economic must.
If your company does not have some sort of compliance policy already in place, it could open itself to unforeseen costs generated by non-compliance. These costs can stem from, late deliveries, improper shipments, hidden costs and other unauthorized fees associated with existing products and services. A solid vendor risk management system such as VendorInsight®, that offers a platform for vendor compliance will help you avoid disputes, unnecessary charges and will save you time.
VendorInsight® VRM Pro offers a platform where you can create an Oversight and Policy compliance dashboard that is based off of your current internal policies. This dashboard will show all of your vendors at a glance and if the internal policy requirements are met or outstanding. This means that for each vendor there will be a policy requirement matrix as part of the vendor relationship profile that will show all the policy requirements that are required for them based off of their level of risk (critical- low risk) to your company.
For each vendor, you will be able to tell quickly if they are complaint or not in all aspects of your internal policy. For areas where they may not be compliant, they will show red, and you can use the PCM renewal planning feature to request additional documentation. As well, if you already have the documentation the vendor risk management system, you can assign certain documents to meet the policy requirements.
Not a Factor
Communication is a vital in vendor compliance. To make sure you have all the necessary documents and other data in place, you are going to have to work with a variety of customer service teams for all of your vendors. Working with outside customer service support teams, it is important to be courteous and have a clear picture of the missing content when you talk with them. This will ensure that you are giving them all the information they need so they can provide you with the correct documentation to make them compliant as a vendor. VendorInsight® VRM Pro will take away some of that work for you. Our dedicated due diligence team will help you acquire the necessary SOC1/SOC2, financial, business continuity, insurance and information security documents. They will also take the time to perform a compliance review.
Having a vendor risk management system that has comprehensive oversight and policy compliance will help ensure that you have a lasting relationship with your vendors. The long-term goal is to be able to monitor all of your vendors but to keep a closer eye on those who could pose a negative risk to your growing business. Having a risk management platform that you can trust to help you keep track of your vendors will give you the peace of mind to continue to grow and bring on new vendors over time.
VendorInsight® is the comprehensive resource for improving your vendor risk management program. With its monitoring and evaluation features, outsourced vendor risk management solution in VRM Pro ™, and industry-leading automation of processes, policies and workflows, VendorInsight® provides the tools to face any risk management hurdle. Request a demo today to learn more about how VendorInsight®’s vendor risk management solution can help you manage your third-party vendor relationships, maintain compliance with regulations, meet your business objectives and deliver ROI.