Three Reasons to Establish a Vendor Risk Management StrategyRajesh Unadkat
Budgetary pressures and evolving technology are pushing more businesses and organizations to use third party vendors for a variety of IT and business process functions. While often convenient and financially helpful, this practice also opens up companies to risks regarding regulatory compliance and data security. Establishing a vendor risk management strategy can help organizations minimize their exposure to losses related to the use of third party vendors.
For business leaders still weighing whether vendor risk management software and planning are right for them, consider these reasons why taking a proactive stance on this subject is so important:
- Avoid regulatory trouble – Health Insurance Portability and Accountability Act (HIPAA), Anti-Money Laundering (AML) requirements, the Foreign Corrupt Practices Act (FCPA), the UK Bribery Act, and various other laws have some very strenuous data management requirements. A vendor risk management system will better help your organization avoid running afoul of these laws and racking up fines and penalties for non-compliance.
- Reduce the chance of a data breach – When you share important information with third party vendors or make use of a shared technological infrastructure, you may create an opening for hackers. Vendor risk management software and strategies can help you mitigate this risk.
- Save money – More intensive reviewing and monitoring of third party vendor services will allow your organization to better evaluate these relationships and their value. This information can help leaders make better decisions concerning which vendors to keep and whether agreements need amending.
For decades, Aruvio has provided GRC and information security solutions to clients in a wide range of industries. Aruvio’s vendor risk management software solution provides critical assistance to organizations regulated by PCI DSS, FCPA, HIPAA, and the Federal Trade Commission (FTC) & the Office of the Comptroller of the Currency (OCC) laws.
Aruvio’s software provides a centralized repository for important information that helps businesses manage risk among multiple vendors. With Aruvio’s software, businesses can quickly adapt their vendor risk management plans to changes in regulation or law. The software also has an option for vendors to review and prove their knowledge of relevant policies. With its GRC applications that are built on Salesforce platform, Aruvio can help companies instantly and with limited resource maximize benefits offered by their governance, risk management, and compliance management operations.