Proactively Identify and Mitigate Vendor Risk
Promote a collaborative approach to vendor risk management and guard against regulatory, security, operational, and financial risk.
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A vendor risk management program can help organizations achieve risk readiness and address the following concerns:
- Increased probability of underperformance
- Higher costs due to additional spend, inflated price increases, and complex integrations
- Difficulty resolving conflicts
- Business disruption caused by vendors
Achieve the following with a vendor risk management program:
- Better performance from vendors, benchmarked year over year
- Risk mitigation plan in case conflicts arise
- Avoid risks all together through a rigorous selection process
- Avoid unplanned spend upfront by examining requirements and the vendor landscape
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Onsite Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn’t enough, we offer low-cost onsite delivery of our Project Workshops. We take you through every phase of your project and ensure that you have a road map in place to complete your project successfully.
Book NowModule 1: Prepare for the Workshop
The Purpose
- To prepare the team for the workshop.
Key Benefits Achieved
- Avoids delays and interruptions once the workshop is in progress.
| Activities: | Outputs: | |
|---|---|---|
| 1.1 | Send workshop agenda to all participants. |
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| 1.2 | Prepare list of vendors and review any contracts provided by them. |
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| 1.3 | Review current risk management process. |
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Module 2: Review Vendor Risk Fundamentals and Establish Governance
The Purpose
- Review IT vendor risk fundamentals.
- Assess current maturity and set risk management program goals.
- Engage stakeholders and establish a risk governance framework.
Key Benefits Achieved
- Understanding of organizational risk culture and the corresponding risk threshold.
- Obstacles to effective IT risk management identified.
- Attainable goals to increase maturity established.
- Understanding of the gap to achieve vendor risk readiness.
| Activities: | Outputs: | |
|---|---|---|
| 2.1 | Brainstorm vendor-related risks. |
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| 2.2 | Assess current program maturity. |
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| 2.3 | Identify obstacles and pain points. |
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| 2.4 | Develop risk management goals. |
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| 2.5 | Develop key risk indicators (KRIs) and escalation protocols. |
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| 2.6 | Gain stakeholders’ perspective. |
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Module 3: Assess Vendor Risk and Define Your Response Strategy
The Purpose
- Categorize vendors.
- Prioritize assessed risks.
Key Benefits Achieved
- Risk events prioritized according to risk severity – as defined by the business.
| Activities: | Outputs: | |
|---|---|---|
| 3.1 | Categorize vendors. |
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| 3.2 | Map vendor infrastructure. |
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| 3.3 | Prioritize vendors. |
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| 3.4 | Identify risk contributing factors. |
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| 3.5 | Assess risk exposure. |
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| 3.6 | Calculate expected cost. |
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| 3.7 | Identify risk events. |
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| 3.8 | Input risks into the Risk Register Tool. |
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Module 4: Assess Vendor Risk and Define Your Response Strategy (continued)
The Purpose
- Determine risk threshold and contract clause relating to risk prevention.
- Identify and assess risk response actions.
Key Benefits Achieved
- Thorough analysis has been conducted on the value and effectiveness of risk responses for high-severity risk events.
- Risk response strategies have been identified for all key risks.
- Authoritative risk response recommendations can be made to senior leadership.
| Activities: | Outputs: | |
|---|---|---|
| 4.1 | Determine the threshold for (un)acceptable risk. |
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| 4.2 | Match elements of the contract to related vendor risks. |
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| 4.3 | Identify and assess risk responses. |
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Module 5: Monitor, Communicate, and Improve IT Vendor Risk Process
The Purpose
- Communicate top risks to management.
- Assign accountabilities and responsibilities for risk management process.
- Establish monitoring schedule.
Key Benefits Achieved
- Risk monitoring responsibilities are established.
- Transparent accountabilities and established ongoing improvement of the vendor risk management program.
| Activities: | Outputs: | |
|---|---|---|
| 5.1 | Create a stakeholder map. |
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| 5.2 | Complete RACI chart. |
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| 5.3 | Establish the reporting schedule. |
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| 5.4 | Finalize the vendor risk management program. |
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