Vendor Risk Assessment
A key process within any ERM program is conducting vendor risk assessments. Learn how to make that process more accurate and efficient with LogicManager.
LogicManager’s ERM Vendor Risk Assessment Solution
Here’s what you can expect with LogicManager’s vendor risk assessment solution package designed specifically for your ERM program:
- LogicManager’s Relationships Taxonomy gives you the ability to determine the criticality of all of your vendors and categorize them accordingly. To help you get started, we’ll provide 7 criteria to measure these vendors against out of the box.
- Recurring tasks can help streamline your reassessment process for each vendor. Ultimately, staying up to date on their potential risks will help you determine if a more granular assessment needs to be conducted within the Plans area of the system.
- Leverage our Vendor Risk Assessment Template for your most critical vendors to get as granular as possible. Copy this assessment from plan to plan to ensure consistency across all assessments, or pull from our centralized risk library to add more unique risks to that particular vendor assessment.
- Use a variety of reporting tools to get the most out of your vendor risk assessments, including but not limited to a Risk Control Matrix, Risk Assessment Dashboard, Vendor Narrative Report and Vendor Dashboard.
Achieve your Vendor Risk Assessment Goals with LogicManager
Maintain a formal vendor repository
Having quick insights into the organizations you depend on most is a common best practice for various business purposes, from IT security to BCP and beyond. It’s also a common regulatory requirement and makes it easy to report to auditors, boards and stakeholders.
Gain critical insights
Using LogicManager’s vendor risk assessment solution for ERM, you can get as granular as you need to understand how each vendor impacts your business. Through configurable questionnaires, you can easily identify which vendors have access to sensitive information, who outsources their processes and much more. Furthermore, these assessments will remain completely objective, providing you with consistently accurate information.
Identify common risks
It’s only natural that many of your vendors share prevalent risks. Leveraging LogicManager’s Taxonomy Insights AI technology, you can easily identify these common risks and eliminate duplicative efforts.
Easily adapt to changes
Your relationships with vendors are dynamic, so it’s important to ensure that you’re reassessing and creating new assessments for vendors as their risk levels inevitably change. Whether their scope of services has expanded, their business model has shifted or their modes of operations have evolved, it’s critical to be able to adapt the way you assess their risks.
What is a Vendor Risk Assessment?
Not everything in life is black and white, and people and relationships are most certainly filled with grey areas. Given the complexities of humans, evaluating business relationships must involve an extensive, formalized process.
While these evaluations should be complex, they shouldn’t be complicated. LogicManager’s vendor risk assessments solution is built into our robust ERM software, meaning complexities are streamlined and your job is made easier.
Vendor Risk Assessment Risks
Risks are everywhere, and if you’re not taking a risk-based approach to assessing your vendors, you’re vulnerable to all of the risks associated with your vendors. Let’s say one of your vendors falls victim to a data breach; so does your business and your valued customers. On top of financial losses for your customers (and ultimately your business as you may be held responsible for making up for those losses) this can result in severe reputational damage.
In the case of a vendor-related scandal, without comprehensive software, it will be difficult to prove that you were not negligent. This can result in regulatory fines and penalties, along with lost jobs and shareholder value decline.