The Benefits of Vendor Risk Management
Vendor Risk Management (VRM) is the process of ensuring that the use of service providers and vendors including IT suppliers do not create an unacceptable potential for business disruption or a negative impact on business performance.
A solid vendor risk management strategy should include:
- – A contract outlining the business relationship between the organization and the business.
- – Consistent monitoring of vendor performance to ensure that contract stipulations are being met.
- – Guidelines regarding who will have access to what information as part of the vendor agreement.
- – Stipulations to ensure that vendors meet regulatory compliance guidelines for your industry, and a method to monitor this compliance.
An effective vendor risk management program will make your business safer and more secure. You’ll be able to identify and monitor current and future vendor risks while improving transparency in controls and related activities.
When you outsource, risk and compliance remain managements responsibility. Don’t be blindsided by a third party’s inadequacies. Start the discussion today on how to protect your company from potential vendor risks.
The most important success factor of vendor management is to share information and priorities with your vendors. Vendor management tools can also be found to enhance items such as requisitions, approvals, expense management, payment and reporting. Overall, processes run smoothly when managed by a VMS team that is dedicated to ensuring both parties (business and vendors) meet all requirements of a contract.
Contact LIMITLESS today for a FREE CONSULTATION to discover how to get control of your unmanaged spend, reduce expenses and implement a vendor management solution in your business.