podcast
7 Vendor Risk Attributes to Consider
You may also be interested in:
Sample: Receive a FREE Vendor Vetting Package
Infographic: Vendor + Product + Risk = Documentation
Podcast Transcript
Welcome to this week’s Third Party Thursday! My name is Branan Cooper and I’m the Chief Risk Officer here at Venminder.
When you outsource a product or service to a vendor, it’s important to clearly understand the risk that decision may represent to you and your customers. Many of these are laid out in the regulatory guidance, but I thought it would be good to briefly laundry list what we see as many of the common ones
The 7 vendor risk attributes are Strategic business, Capital, Liquidity, Compliance/legal, Operational, Cyber and Reputational. We’ll go through each of them now.
- Strategic business
This involves adverse business decisions. Some examples of that are:
- Mergers
- Alliances
- Major system changes
- Growth
- New markets
- Business process changes
- New products or services
- Capital
This is losses resulting from events at the service provider. A couple of examples of this are:
- Data breaches resulting in fraud
- Contract performance
- Liquidity
This is inadequate funds to settle accounts, such as disruptions to cash letter processing or other settlement systems - Compliance/legal
This would be violations of regulations or laws, or non-compliance with internal policies. It may involve:- Data breaches
- Funds availability
- Accuracy of account statements
- Operational
This is risk of loss from failed or inadequate internal process, people, systems or external events. For example:- Employee errors or abuse
- Business continuity and disaster recovery
- Cyber
The potential for a cyber attack. This would involve:- Service disruption
- Data destruction
- Theft of funds or data
- Data corruption
- Reputation
This involves negative public opinion. Of which could be from:- Data breaches
- Service disruption
- Poor customer service
- Poor delivery of products
Now you know the 7 vendor risks to consider: Strategic business, Capital, Liquidity, Compliance/legal, Operational, Cyber and Reputational.
Again, my name is Branan Cooper and thank you for watching! If you haven’t already, subscribe to the Third Party Thursday series.
![38116-newsletter](https://www.venminder.com/hubfs/Home_Images/V4/Animated-Icons/38116-newsletter.gif)
Subscribe to our Third Party Thursday Newsletter
Receive weekly third-party risk management news, resources, and more to your inbox.
Ready to Get Started?
Schedule a personalized solution demonstration to see how Venminder can transform your vendor risk management processes.