Third-party vendor risk management

Third-party vendor risk management is the process of assessing and controlling the potential risks that arise when a business relies on external companies to provide products or services. This ensures that these vendors meet security, quality, and compliance standards, preventing issues like data breaches, financial loss, or reputation damage. By evaluating vendors' practices and monitoring their performance, organizations reduce vulnerabilities and ensure that outsourcing activities align with their overall risk management and regulatory requirements.