The vendor risk assessment is getting significant importance in today’s cyber security world. Vendor Risk Management (VRM) is the process to ensure the organization that their vendors does not create any loss to the business in any form (like financial loss, reputation loss, data loss etc.). This article describes the challenges faced during vendor risk assessment life cycle specific to the vendors and references based on ISO 27001 standards.
Why to implement vendor risk assessment?
One of the major problem areas of enterprise risk management is risk associated with vendor. Managing huge number of vendors and any other third-party relationships is difficult for any organization.