Automating the VRM Lifecycle: Scale Your Vendor Risk Program
“Automation” like the “cloud” and “AI” have reputations as industry “buzzwords.” And yet, there are practical applications for automation throughout the vendor risk management (VRM) lifecycle. Without the ability to automate tasks, scaling a VRM program quickly becomes unmanageable. When working with hundreds, or even thousands of vendors, automation is an essential aspect for effective VRM operations. In this post, we’ll outline some ideal opportunities for automation throughout the VRM lifecycle:
Evaluation & Onboarding
When onboarding vendors, performing an automated Inherent Risk Calculation can help determine the risk for vendors based on basic business context (do they process sensitive data, would breach result in significant harm to the business or its customers, etc.). From there, Stakeholder Communication & Task Delegation is a key opportunity to leverage automation. Simple, yet powerful, workflows can add automation by looping in the right stakeholders – assigning specific tasks – at the right time during the VRM lifecycle. In doing so, your team will know what they need to do and when to do it.
Vendor Risk Assessments
Vendors complete the same industry-standard assessments on a regular cadence, but when leveraging a third-party risk exchange, vendors can utilize one-to-many assessment sharing. This enables the seamless “exchange” of assessments without requiring the repetitive manual completion of the same questionnaires. These assessments leverage Automated Risk Flagging to identify issues based on vendor responses. When risks arise, Dynamic Risk Assessments can automate actions, such as notifying stakeholders, sending more detailed assessments, and assigning risk treatment actions.
Vendor Risk Mitigation
When a vendor risk is flagged, automatically Assign a Risk Owner to oversee remediation actions. Then, Provide Remediation Advice within any delegated tasks based on regulations, standards and frameworks embedded into your VRM lifecycle.
Performance Reviews & Renewals
Automatically trigger Business Review & Reassessments based on contract expiration dates. Utilize Previously Completed Assessments to give the vendor a starting point, enabling them to adjust the last assessments answers instead of starting from scratch.
Automatically Schedule Reports to quickly generate and share key VRM program details with critical stakeholders. Use Metrics as Automation Triggers, for example, when a new high risk emerges, automatically send a notification to the appropriate stakeholder.
Vendor Risk Monitoring
Use Certification Expirations as Automation Triggers, such as when a vendor security certification expires, automatically trigger an action (create a new risk, send a reassessment, or notify a stakeholder). The same can be said of Vendor Breach and Regulatory Enforcement Alerts.
OneTrust Vendorpedia automates the entire vendor risk lifecycle from onboarding, mitigation, reporting, and ongoing monitoring. The Third-Party Risk Exchange reduces the burden of vendor risk assessments.
Learn more in our ‘Ultimate Guide: 10 Essential Steps to Streamline Third-Party Risk Management (TPRM)’ or request a demo today!