Gain critical insight
Having insight into the criticality of services provided by any vendor ensures that you’re aware of all dependencies and can allocate resources as necessary. This comes into play when clients or regulators are conducting due diligence on you; you can more easily present a list of all partners and dependencies.
Work smarter, not harder
Only ask the relevant questions of the relevant vendors. Knowing the vendor criticality streamlines collecting due diligence information and vendor reviews. Once less critical vendors are identified (for example, IT vendors that don’t integrate with networks or those that have no access to sensitive data) their reviews can be more straightforward than one for a more critical vendor.
Automate your processes
Save time by using automatic workflows and logic to send additional questionnaires to critical vendors on a more frequent basis without unnecessarily contacting less critical parties. The criticality tiering process itself can also be automated; LogicManager provides standard parameters to consider as part of a vendor risk assessment and the system can aggregate all responses, exceptions and risk ratings across teams, generate a summary risk rating and automatically place the vendor in the appropriate tier.
Maintain a centralized repository
Having an all-in-one, centralized repository of vendors is an important starting point for a mature third party risk management program. From there, you’ll be able to easily reference and compare vendors, making the criticality tiering process a smoother one.
Leverage a flexible taxonomy
LogicManager’s taxonomy hierarchy structure is completely customizable and enables strategic grouping. Deem vendors as Low, Medium, Moderate, High, Critical or Severe; no matter what, you control the naming conventions. This configurability also ensures that important data points like type of service provided, industry or data sensitivity are still captured on a per-vendor basis.
Draw key connections
Vendors can be linked or referenced to different repositories managed in the LogicManager system, from applications to business units and more. This lets you quickly see if you need to allocate more resources to higher risk vendors, or vendors that provide services to multiple departments or business units. If any incidents were to occur with vendors or the other solution areas tied to the vendors, you are able to base your response on the criticality of the vendor.