// THREAT DETECTION AND DATA PRIVACY TERM
Vendor Risk
Vendor risk refers to the potential negative impacts to an organization that can arise from working with third-party suppliers, such as data breaches, service disruptions, or non-compliance with regulations. It encompasses all risks introduced by external entities that provide products or services.
TECHNICAL DEFINITION
Vendor risk (also third-party risk or supply chain risk) is the inherent and residual risk introduced to an organization by external vendors, suppliers, or third-party entities, encompassing potential cybersecurity vulnerabilities, data privacy breaches, operational disruptions, compliance failures (e.g., GDPR, CCPA), and reputational damage. Effective vendor risk management (VRM) involves assessing, monitoring, and mitigating these risks across the entire vendor lifecycle to protect organizational assets and ensure regulatory adherence.
BACKGROUND
Computer security is a subdiscipline within the field of information security. It focuses on protecting computer software, systems, and networks from threats that can lead to unauthorized information disclosure, theft, or damage to hardware, software, or data, as well as to the disruption or misdirection of the services they provide.
READ MORE ON WIKIPEDIASYNONYMS & ALIASES
- Third-Party Risk
- Supplier Risk
- Supply Chain Risk
- TPRM
- External Risk
USAGE NOTE
Organizations actively manage vendor risk through assessments and continuous monitoring to protect sensitive data and ensure business continuity.
DEVELOPERS
Organizations developing technology related to Vendor Risk.
ServiceNow offers an Integrated Risk Management (IRM) module that includes a comprehensive Vendor Risk Management solution, enabling organizations to manage the full lifecycle of vendor risk assessments and continuous monitoring.
Archer provides an extensive Third Party Risk Management solution that helps organizations assess, monitor, and manage risks associated with their vendors, suppliers, and business partners.
OneTrust offers a Third-Party Risk Management solution that helps automate vendor risk assessments, manage security questionnaires, and monitor vendor compliance across the supply chain.
Bitsight provides security ratings that offer a data-driven, outside-in view of an organization's and its vendors' cybersecurity performance, enabling effective third-party risk management.
SecurityScorecard offers security ratings and continuous monitoring for vendor risk management, providing actionable insights into the cybersecurity posture of an organization's third parties.
Prevalent specializes exclusively in Third-Party Risk Management (TPRM) solutions, providing a unified platform to assess, manage, and monitor vendor risk throughout the entire vendor lifecycle.
MetricStream provides a robust platform for Governance, Risk, and Compliance (GRC), including a comprehensive Third-Party Risk Management solution to help organizations manage risks from vendors and partners.
Panorays offers an automated third-party security risk management platform that helps businesses manage, mitigate, and monitor vendor security risks and compliance.