The vendor assessment technique is a sure must for you to consider. Because vendor relationships can either lead to two. It could either lead you to prosperity or otherwise. Which could be security risks and failure.
Do You Really Need This Assessment?
Consider what the experts say.
Another adds that a vendor risk assessment is “essential in selecting partners”. Partners “that are appropriate to your business needs.”. – added by the Founder/CEO of BBN Times
Considering the mentioned comments, ‘every’ company needs it. Because whose company does not need partners? Is there a company that can build prosperity alone?
There surely isn’t anyone. Certainly, conducting a Vendor Risk Assessment is crucial. And this must be done prior to closing deals. Not afterward. Or else, you’ll again lose the chance of protection. And gain the potential of risks, let me say, more risks.
So, what are the best practices in handling these assessments? Could there be techniques?
There surely are. Consider the following information.
Techniques To Help: Vendor Risk Assessment
Ensure that you have thoroughly considered all vendors on the list. One way to do this is by doing a comparison. Compare your vendor’s list to the accounts payable list.
Now you have your complete list of vendors. The next step is to organize your list. Sort these vendors according to type. For instance, have them by marketing agencies, cloud storage providers, processors, so forth.
Determine The Risk
The business must then know the difference between business impact and regulatory risk. Consider their difference. Business impact refers to the vendor’s effect on the business. Is it critical or not?
On the other hand, regulatory risk refers to the vendor’s level of risk. You can sort it by low, to medium, and to high risk.
You must also be aware that this risk assessment is not a one-time achievement. It does not end in one successful process. This is a continuous approach. Thus. the quality of discipline and consistency play the key roles of success.
Be Thorough And Specific
Each vendor should have two assessments. You sure should be thorough. Aside from handling risk assessment with the business as a whole. Also, consider having a risk assessment of each of its products and services. You may be losing sight of some holes. Thus, being thorough help.
Continuous Security Measures
If for instance, the assessment to a certain vendor is high risk. Consider having some contract considerations. The security team must take a closer look at this partnership. Certainly, have more close monitoring if possible. Also, have deeper annual due diligence too.
Do It Beforehand Foremost
Being continuous also includes being scrutinized in the first place. Do not wait until high-risk assessment until you conduct security measures.
The famous line again applies. “Prevention is better than cure”. There surely must be more potential vendors out there. If it poses a high risk, do not put your company in danger at least.