The concept of a vendor is sometimes narrow, but the reality is that a vendor is any relationship that may cause reputational risk. With this understanding, from a risk management perspective, the definition of vendors is wide. Your vendors might include joint ventures, law firms, affiliates, insurance brokers, strategic partnerships, distribution agents, fourth parties and other nontraditional suppliers.
Consequently, the range of applicable risks is also wide — and under COVID-19 it’s further widened due to:
- Reactive and uncoordinated responses
- New risks from vendor work-from-home situations
- Technology providers unable to handle heightened demands
- Limited business continuity and disaster recovery reviews
Applying an appropriate level of vendor risk management (VRM) is essential in a crisis as well as under “normal” circumstances and requires a recognition of the challenges. Vendors are frequently trusted to execute critical business functions, sometimes relying on other vendors without the organization’s awareness. And risks grow through offshoring in the global economy, increased compliance requirements, geopolitical and social responsibility complexities, and overwhelming technology demands. Additional pressure for many industries comes with the rise in regulatory scrutiny of vendor management.
Building a significant VRM program on an automated, intelligence-driven solution provides the ability to identify key risks in a timely manner and delivers insights for dealing with those risks. One such solution is the Grant Thornton Intelligent Vendor Risk (GT IVR), an administered VRM service that unifies discrete VRM capabilities using a cloud-capable technology platform. The plug-and-play service for organizations integrates capabilities from people, process and technology perspectives.
The GT IVR solution:
- Enables a tailor-made VRM program
- Integrates vendor risk intelligence from multiple sources
- Empowers efficient workflows and automation to lower VRM costs
- Facilitates customized risk-based intelligence reports for various stakeholders
For a use-case demonstration of the GT IVR solution and further information about strengthening your organization’s risk management, register to replay Steps to intelligently manage vendor risk in a time of uncertainty
Managing Director, Leader, National Third-Party Risk Management
+1 602 474 3415
Senior Manager, Cyber Risk
+1 630 426 5722