Insights governance risk and complianceSafeguard Your Business with Vendor Risk Management Practices

15 May 2023

Safeguard Your Business with Vendor Risk Management Practices

ServiceNow vendor risk management is a cloud-based platform designed to help organizations manage the risks associated with their vendors. Vendors can introduce various organizational risks, including financial, legal, regulatory, operational, reputational, and information security risks. ServiceNow VRM provides a centralized system for organizations to assess, monitor, and mitigate the risks associated with their vendors. VRM allows organizations to streamline their vendor risk management processes and workflows. It also enables them to more efficiently manage their vendor relationships and reduce the potential for vendor-related risks. Some of the platform's capabilities include:

Vendor onboarding: Streamlining the process of onboarding new vendors and capturing information such as their risk profile, financial stability, and compliance with relevant regulations.
Risk assessments: Conduct risk assessments of vendors based on the potential impact of their services on the organization and assign risk scores accordingly.
Risk monitoring: Monitoring the risks associated with vendors on an ongoing basis. This includes reviewing compliance with contractual obligations and assessing vendor risk profile changes.
Vendor performance management: Evaluating the performance of vendors based on predefined criteria, including service level agreements and other contractual obligations.
Issue management: Tracking and managing vendor-related issues and developing action plans to mitigate identified risks.
Reporting: Generating reports and dashboards to provide visibility into the organization's vendor risk profile and performance.

ServiceNow VRM helps organizations manage the complexities of their vendor ecosystem more effectively. It also enables them to proactively identify and mitigate risks, comply with relevant regulations, and protect their business operations and reputation.

It is especially critical in healthcare, finance, and technology industries, where organizations often rely on third-party vendors to provide essential services and support.

Also, get insights on The Future of Vendor Risk Management: Trends and Predictions

ServiceNow with Third-Party Risk Management Platforms

ServiceNow helps integrate TPRM (Third-Party Risk Management Platforms) in firms' business decisions. According to Forrester's report, ServiceNow continues to gain executive support and C-level visibility by connecting TPRM to other business functions. The vendor has made big strategic moves, including a robust app store featuring 600-plus integrations and an aggressive product release schedule. ServiceNow's current service strengths include configurable risk rating and correlation and robust workflow. It remains a good fit for firms where TPRM is part of a broader strategy with ServiceNow's other products.

What are the Top Recommendations for Vendor Risk Management?

Here are some ServiceNow Vendor Risk Management (VRM) recommendations for this year:

Vendor selection criteria: Establish clear criteria for selecting vendors that consider the risks associated, the services they provide, and the vendor's ability to meet your organization's needs.
Vendors registration: Ensure that all vendors are registered in the ServiceNow system to ensure a comprehensive and accurate inventory of your vendors.
Customize solution: Customize the ServiceNow VRM solution to meet your organization's specific requirements by configuring workflows, risk assessment templates, and reporting tools.
Continuous risk assessments: Regularly conduct risk assessments of your vendors using the ServiceNow platform to identify risks and their potential impact on your organization. Use the risk assessment templates provided by ServiceNow or customize them to meet your organization's specific needs.
Monitor vendor performance: Use ServiceNow to monitor vendor performance regularly to ensure they meet their contractual obligations and manage risks appropriately. This may include reviewing performance metrics, conducting site visits, and conducting periodic audits.
Prioritize vendors and risk scores: Assign risk scores to each vendor based on the results of the risk assessments and prioritize vendors based on their risk level. This will help you focus your risk management efforts on the vendors that pose the highest risks to your organization.
Address identified risks: Use the issue management tools provided by ServiceNow VRM to track and manage vendor-related issues and develop action plans to mitigate identified risks.
Program improvement: Continuously improve your vendor risk management program by incorporating stakeholder feedback, monitoring industry trends, and assessing the effectiveness of your program.
Analytics & reporting: Leverage ServiceNow's reporting and analytics tools to track your progress and identify areas for improvement. Use the insights from the reports to adjust your vendor risk management strategy as needed.
Integrate with other systems: Integrate ServiceNow with other systems, such as your procurement or contract management system, to streamline your vendor risk management processes and workflows.
Training: Provide training to staff on how to use ServiceNow VRM effectively and identify and manage vendor risks.

Gain the Complete Guidelines to Setup Vendor Risk Management Program

Conclusion

By implementing these ServiceNow VRM recommendations, you can streamline your vendor risk management processes and workflows, more efficiently manage your vendor relationships, reduce the potential for vendor-related risks, ensure business continuity, and maintain the trust of your stakeholders.

With ServiceNow partners, you can also get a personalized experience without any hassle. So, if you are looking for an efficient way to implement VRM in your organization with professional support, then ServiceNow partners like inMorphis can be the perfect solution for you.