The Vendor Risk Management Framework

The Vendor Risk Management Framework is a structured approach organizations use to identify, assess, and monitor potential risks associated with their suppliers and partners. It ensures that third parties—like vendors providing services or products—meet security, compliance, and quality standards. By managing these risks, organizations protect their operations, data, and reputation from threats like data breaches, fraud, or service disruptions. The framework involves planning, evaluating vendors’ controls, ongoing monitoring, and making informed decisions to minimize potential negative impacts while maintaining productive relationships.