Capterra Glossary
Vendor Risk Management (vrm)
Vendors are a crucial part of day-to-day business operations but can present problems when it comes to IT matters and industry laws or regulations. When finding a new vendor, companies must assess the risk associated with each one to mitigate potential negative impacts on their business. To do this successfully, vendor risk management (VRM) strategies are used. VRM is an in-depth process but typically includes processes like investigating the vendor's cyber-security measures, ensuring that they can remain compliant with industry needs (such as HIPPA for health-care businesses), and reviewing their data breach notification policies.
What Small and Midsize Businesses Need to Know About Vendor Risk Management (vrm)
Vendor risk management (VRM) can be a valuable tool for all SMBs but it is crucial in those that must remain compliant with confidentiality laws such as HIPAA. Those who do not have the resources to conduct a VRM in-house can outsource the process to ensure that they partner with vendors that present the lowest risk level.
Related Terms
- Enterprise Resource Planning (ERP)
- Procurement
- Total Cost of Ownership (TCO)
- Vendor
- Supply Chain Planning (SCP)
- Telematics
- Senpai
- Vendor Management
- Value-Added Reseller (VAR)
- Bill of Materials (BOM)
- Supply Chain
- Smart Factory
- Scanner
- SCADA (Supervisory Control and Data Acquisition)
- Radio-frequency Identification (RFID)