How to Use Financial Benchmarks in Vendor Reviews

Reviewing a vendor’s financials is an essential step of every successful third-party risk management program. Income statements, balance sheets, and cash flow statements provide a lot of valuable financial data, but it’s not always easy to know how to interpret the information.

Comparing this data to financial benchmarks is an effective strategy that can bring greater clarity to your vendor’s financial health. These financial benchmarks can give better insight into individual vendor risk profiles, as well as the broader arrangement of your vendor inventory. 

Download the eBook to learn:

• Common financial benchmarks to use in vendor reviews
• Special considerations based on the level of vendor risk
• Additional tools to use in vendor financial reviews