What is vendor risk management?
Vendor Risk Management is the process of identifying, assessing, and managing the risks associated with third-party suppliers, service providers, or partners who have access to your organisation’s systems, data, or operations.
These third parties (also referred to as vendors) can include cloud providers, IT consultants, software platforms, outsourced support teams, or even physical security contractors. Allowing a third-party access to your organisation, whilst they may be essential, also introduces security, compliance, legal, or operational risks that need to be carefully managed.
In the context of compliance, standards such as ISO 27001 and SOC 2 require businesses to ensure that any third-party vendors have proper risk management procedures in place, and that they follow the security requirements of the organisation. They must also make sure that any security incidents that stem from a third-party are documented carefully and responded to appropriately.
These third parties (also referred to as vendors) can include cloud providers, IT consultants, software platforms, outsourced support teams, or even physical security contractors. Allowing a third-party access to your organisation, whilst they may be essential, also introduces security, compliance, legal, or operational risks that need to be carefully managed.
In the context of compliance, standards such as ISO 27001 and SOC 2 require businesses to ensure that any third-party vendors have proper risk management procedures in place, and that they follow the security requirements of the organisation. They must also make sure that any security incidents that stem from a third-party are documented carefully and responded to appropriately.
Updated on: 24/04/2025
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