Benefits of Vendor Risk Management Through Your Peers’ Eyes

Earlier this month, Venminder released our fourth annual State of Third-Party Risk Management survey results. The insightful whitepaper includes responses from a variety of organizations across multiple industries providing much insight into how your peers are managing third-party risk today.

What Are the Benefits of Vendor Risk Management?

One of the questions asked was, “What do you believe are the primary benefits vendor risk management gives your organization?” Here are some of the responses we received to this open-ended question.

1. Cost efficiency
2. Proactive protection
3. Avoiding potential new business loss
4. Standardizing vendor accountability
5. Regulatory protection
6. Compliance
7. Better preparation for audits
8. One-stop shop for vendor compliance
9. Finding gaps in third and fourth parties
10. Avoiding penalties
11. Satisfying regulators

As a follow up, we wanted to know the primary reason for doing vendor risk management. Here’s what we found:

• Regulatory requirements – 85%
• Company initiative – 9%
• Quality assurance – 4%
• Cost control – 2%

It’s really no surprise that regulatory requirements are the main reason that most organizations do vendor risk management. It’s a requirement and, therefore, a focus is placed on it. However, many mentioned some aspect of cost benefits in their response to the primary benefits vendor risk management gives their organization. Given that insight, we do feel the cost control component should be explored further.

Interested in learning the other benefits that your peers feel vendor risk management gives them? Check out the full survey results and State of Third-Party Risk Management Whitepaper for a full analysis. Download here.