Vendor risk management is the process of identifying and treating risks related to service providers, suppliers and consultants. This is often a multidisciplinary effort that covers a variety of vendor related risks. The following are illustrative examples of vendor risk management.
Strategy RiskStrategic risks of a partnership. For example, the risk that a competitor will gain access to trade secrets.
Financial StabilityInvestigating the financial stability of partners. A partner that goes into financial distress can disrupt your projects and operations with little hope of remedy.
Legal RiskThe risk of legal disputes with a partner.
Technical RiskTechnical risks associated with IT services, infrastructure, equipment, software and partnerships. For example, a service that represents an information security risk.
ComplianceA vendor's compliance to laws, regulations and standards.
SustainabilityYou can't claim to be an environmentally responsible organization if you simply outsource things to a partner that pollutes for you. As such, sustainability practices are an increasingly common focus of vendor risk management.
Project RiskProject risks introduced by a vendor such as the depth of their resource capabilities.
Operational RiskOperational risks introduced by a supplier or service provider. For example, risks of a political event that disrupt a supply chain.
This is the complete list of articles we have written about management.
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The common elements of vendor management.
An overview of the risk management process.
An overview of cascading failure and resilience.
An overview of business as usual.
A list of techniques for reducing risk.
The difference between risk mitigation and risk reduction.
A list of common risk controls.
A definition of risk value with example calculation.
The common types of risk impact.
A definition of risk communication with examples.
Overview of the steps in a risk management process.
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