How to automate vendor risk management

Most vendor relationship management tools come with risk assessment and mitigation capabilities. These vendor risk management modules centralize vendor data, from contact information to compliance records, certifications, and performance metrics, in a single location for easy review and management.

When integrated with third-party data feeds that assess the financial health and regulatory compliance of vendors, every aspect of vendor risk scoring can be automated. By setting predefined risk thresholds and using AI to monitor existing risks, buyers can flag potential risks and implement a risk mitigation plan.

When a vendor is flagged for a potential risk, their profile moves to the review process, or risk mitigation actions are scheduled. Proactive management of vendor risks can help buyers stay on top of vendor performance and ensure the effortless enforcement of regulatory compliance.