6 Benefits of Vendor Risk Management Software

You may already understand the importance of third-party risk management to your organization. Not only is it a regulatory requirement, but a robust vendor risk management program will better prepare your organization to identify, assess and manage different risk types including compliance, information security, privacy, legal and business continuity. However, maybe you’re still debating whether to invest in vendor risk management software. Read on to discover the benefits that this type of software can bring to your organization.

Top Six Benefits of Vendor Risk Management Software

1. Automation: It’s very likely that you already have a lot on your plate. There are many details to remember and many tasks to accomplish in the daily operations of your vendor risk management program. Utilizing vendor risk management software allows you to automate due diligence and monitoring tasks so you no longer need to worry about missing important dates or overlooking necessary oversight activities.
2. Organization/Centralization: Utilizing vendor risk management software centralizes your program processes and maintains organization through standardized practices.
3. Contract management: You can easily see key terms and renewal or termination notifications when your data is consolidated into an easily accessed vendor risk management platform.
4. Errors reduction: Manually inputting and processing data increases the likelihood of errors, even more so when there is more than one person assigned to the task. Using an automated software program allows for better collaboration and reduces the opportunity for mistakes often found in manual processes.
5. Ease of reporting: Do you rely on time-consuming ad-hoc reports for regulatory exams? With risk management software, you can create a customized set of reports that will clearly address any number of vendor-risk data points, including emerging issues or areas of concern. Your board and examiner will welcome this level of organization and detail.
6. Cloud storage: With nearly everything else moving to the cloud, it only makes sense that your vendor data should make the move too. Your critical data will be better protected in the event of a business disruption and you have the added benefit of unlimited storage.

So, now you know some of the main benefits from using vendor risk management software. While you can manage your vendors through spreadsheets or other non-automated methods, managing hundreds or thousands of vendors that way isn’t sustainable or scalable and consumes too much time managing the process vs. managing vendor risk. Vendor risk management enables automation, organization, standardization and reporting in a highly efficient and effective way, making it so much easier for your organization to successfully manage your vendor risk program.

Your vendor risk management program is important. Learn how to create a  vendor risk management program that protects your organization in this infographic. Download now.