Third party & supplier risk management software gathers and manages vendor risk data to protect companies from issues such as data breaches or noncompliance. This type of software assesses, monitors, and mitigates all risks that may have a negative impact on the relationship between a company and its suppliers. Third party & supplier risk management software is typically used by compliance officers or by managers from departments such as quality management, supply chain, or manufacturing. Compliance officers use third party & supplier risk management software to ensure compliance with internal policies and governmental regulations such as FFIEC, CFPB, or HIPAA. Department managers benefit from using this type of software as it helps reduce the risk of disruption caused by unreliable suppliers.
A third party & supplier risk management tool is usually implemented as part of a broader governance, risk, and compliance initiative, but the software can also be delivered as a standalone product. When provided separately, third party & supplier risk management solutions need to integrate with other software tools such as supply chain suites, quality management software, ERP systems, and governance, risk, and compliance software.
To qualify for inclusion in the Third Party & Supplier Risk Management category, a product must:
Include standard workflows and templates to assess and evaluate supplier risk
Provide a 360-degree view of suppliers which can be shared internally and externally
Ensure compliance with internal policies and regulations for supplier risk
Deliver processes and templates for supplier risk control and oversight
Offer self-service portals for suppliers to provide information and documents
Include standard reports on risk monitoring and risk exposure
Monitor vendor performance and any supplier risk changes
