How to choose the right Vendor Risk Management (VRM) provider

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July 21, 2021

Which vendor risk management (VRM) provider is right for your business?

At first glance there can appear to be many options available, but with the growing risk of cyberattacks, a specialist cyber VRM service is the logical answer.

Third-party/vendor risk management (VRM) is increasingly important as businesses rely on a proliferation of technology services – such as the Cloud and Internet of Things (IoT) – to realise their strategic and operational objectives, as well as having to comply with complex regulatory requirements.

Consider the rise in cybercrime, from the SolarWinds hack to the most recent Kayesa ransomware catastrophe, and it is vital to make sure your organisation is not vulnerable to hackers using your third-party suppliers as a gateway to paralysing your systems.

So how do you choose?

Analyst Gartner recommends the first step is to develop your company’s requirements for risk management of third parties by defining your needs for the risk domains relevant to the problem you are trying to solve. Then identify the vendors involved in these areas to develop a roadmap to implement and integrate solutions.

Your options can include:

  • Consultant – builds a VRM framework, implements solutions, provides assessment support/managed services
  • IRM (Integrated Risk Management) – software platform for assessment, monitoring, reporting, remediating risks
  • VRM (Vendor Risk Management) – tailored software platform for assessment, monitoring, reporting, remediating vendor risks
  • SRS (Security Rating Service) – cybersecurity data collection, rating and monitoring service
  • Exchanges and Marketplaces – platform for collecting, validating, sharing vendor risk and security assessments
  • Content/Data Feeds ­– public and private vendor risk data collection and data feeds.

In fact, when it comes to minimising the risk of devastating third-party cyberattacks, the VRM option is the best fit.

Why VRM is the best fit

Your business is exposed to a wide range of risks when you collaborate with technology vendors. These include financial, operational, security, regulatory, geographic and strategic risks. VRM identifies, assesses, analyses, remediates and monitors each of these categories specific to a technology vendor and the products or services it provides.

With a VRM specialist you can manage the risks of third parties with adequate controls for business continuity management, vendor performance, vendor viability and data protection.

Within the VRM sector, cyber VRM experts such as C2 Cyber offer you the capability to focus on external technology suppliers beyond your own firewalls. This expertise is essential if your business is resource-constrained, or lacks the internal capability or expertise to assess third-party cyber risk effectively.

The value of cyber VRM experts 

A cyber VRM service can provide effective oversight of your third parties and integrate back into your internal team’s security:

  • deploying security risk quantification techniques
  • recommending additional controls third parties should implement
  • directly working with third parties to remediate risk.

Of course, it is vital to match effort and cost to degree of risk, focusing your limited resources on the suppliers that present the most danger to your business. That is the value of C2 Cyber’s proprietary COBRA platform, which identifies the supply chain risks that pose the greatest threat.

C2 Cyber are experts in cyber security and vendor risk management. To protect your business from cyberattack, call us today on +44 (0) 20 7965 7597 or book your appointment

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