Market Overview
This report outlines the factors responsible for the growth of the vendor risk management market and the growth prediction during the forecast period. The global vendor risk management market is expected to witness significant growth during the forecast period. The valuation may reach USD 15.6 billion if the market grows at a CAGR of 13.30%. The vendor risk management solutions help the companies to prevent the third-party vendors from creating unnecessary disruptions.
Vendor risk management refers to the process of planning and managing the services and products of the third party and also helps to keep a note on those. It helps to monitor the performance of the vendors and makes sure that it meets the contract. The organizations are currently experiencing high competition for the introduction of advanced technologies, which will help to notice a rise in profitability by growing the customer base. To provide good quality service and enhance the profit margin, the companies reduce the operational cost and form a partnership with the third-party vendors responsible for managing complex business operations.
Most organizations spend a lot of time evaluating the performance of the vendors. The vendor risk management solutions help these organizations reduce their efforts to identify and determine the products, accuracy, and delivery time of the vendors. When an organization is partnered with a lot of vendors, they use vendor risk management solutions. This helps the organization to run smoothly. Due to this reason, the vendor risk management market may experience huge growth in the coming years.
Send Your Request for Sample Report Brochure
Segmental Analysis
The vendor risk management market size is segmented into four major categories: organization size, end-user, deployment, and component. Based on the organization's size, the vendor risk management process market is segmented into small and medium enterprises and large enterprises. On the basis of end-user, the market is further segmented into BFSI, healthcare, government, IT and Telecom, media and entertainment, manufacturing energy and power, education, and transportation and logistics. On the basis of components, the vendor risk management process market is further segregated into services and solutions. The services segment is again sub-segmented into managed and professional service. In contrast, the solution segment is also sub-segmented into assessment management, contract management, procedure and policy management, quality management, and many more. Finally, by deployment, the vendor risk management process market is further divided into on-premises and on-cloud.
Key Players
- IBM Corporation (U.S.)
- MetricStream (U.S.)
- Lockpath Inc. (U.S.)
- Logic Manager (U.S.)
- Rsam (U.S.)
- BitSight Technologies (U.S.)
- RSA (U.S.)
- Genpact (U.S.)
- Resolver (Canada)
- SAI (Australia)
- Optiv (U.S.)
- Quantivate (U.S.)
- RapidRatings (U.S.)
- Process nity (U.S.)
- VendorInsight (U.S.)
Introduction:
In today's interconnected business landscape, organizations rely heavily on vendors and third-party suppliers to fulfill various operational needs. While such partnerships offer numerous benefits, they also introduce potential risks that can have a significant impact on the overall success and reputation of a business. To mitigate these risks, companies employ vendor risk management strategies. This article will delve into the importance of vendor risk management and provide practical insights to help businesses effectively safeguard their operations.
- Understanding Vendor Risk Management
Vendor risk management encompasses the processes and practices implemented by organizations to identify, assess, and mitigate risks associated with their vendors or third-party suppliers. By proactively addressing these risks, businesses can minimize the potential for disruptions, financial losses, regulatory non-compliance, reputational damage, and data breaches.
- Identifying Potential Vendor Risks
The first step in effective vendor risk management is identifying potential risks that may arise from vendor relationships. These risks can include:
a) Operational Risks: These risks involve issues such as inadequate product quality, service delivery failures, or disruptions in the supply chain.
b) Financial Risks: Financial risks pertain to the vendor's financial stability, including bankruptcy or sudden price increases.
c) Compliance Risks: Compliance risks relate to regulatory and legal obligations that vendors must meet, such as data privacy and security regulations.
d) Reputational Risks: Reputational risks emerge when a vendor's actions or performance reflects poorly on the business, leading to negative public perception.
- Assessing and Evaluating Vendor Risks
Once potential risks are identified, organizations need to assess and evaluate the risks associated with each vendor. This involves conducting due diligence by thoroughly reviewing vendor contracts, financial statements, compliance records, and security measures. Additionally, organizations can assess a vendor's reputation by reviewing feedback from other clients and industry reviews.
- Implementing Risk Mitigation Strategies
To effectively manage vendor risks, businesses must implement appropriate risk mitigation strategies. Some key strategies include:
a) Establishing Vendor Selection Criteria: Develop a standardized process for selecting vendors, considering factors such as reputation, financial stability, compliance history, and security measures.
b) Creating Robust Contracts: Craft comprehensive vendor contracts that clearly outline expectations, performance metrics, service level agreements (SLAs), data protection measures, and dispute resolution mechanisms.
c) Regular Monitoring and Performance Evaluation: Continuously monitor vendors' performance and compliance with contractual obligations. Conduct periodic audits to assess their adherence to security and regulatory requirements.
d) Developing Contingency Plans: Prepare contingency plans to address potential disruptions caused by vendor failures. Identify alternative vendors or establish backup processes to ensure business continuity.
e) Enhancing Communication and Collaboration: Foster open communication channels with vendors to promptly address any emerging risks, resolve issues, and maintain a collaborative relationship.
- Leveraging Technology for Vendor Risk Management
Technology plays a crucial role in streamlining vendor risk management processes. Organizations can leverage vendor management software and other digital tools to automate vendor assessments, track compliance, manage contracts, and monitor vendor performance. These tools provide real-time visibility into vendor-related risks and enable efficient decision-making.
Related Reports
Contact Center Analytics Market
Conclusion:
Vendor risk management is a critical component of a robust business strategy, allowing organizations to mitigate potential risks arising from vendor relationships. By proactively identifying, assessing, and mitigating risks, businesses can protect their operations, reputation, and bottom line. Implementing effective risk mitigation strategies, including rigorous vendor selection processes, robust contracts, ongoing monitoring, and leveraging technology, will help organizations build resilient vendor partnerships.
According to a new market research report "Vendor Risk Management Market by Solution (Compliance Management, Audit Management, Financial Control, Quality Assurance Management), Service, Deployment Type, Organization Size, Industry Vertical, and Region - Global Forecast to 2022" published by MarketsandMarkets™, the vendor risk management market size expected to grow from USD 3.29 Billion in 2017 to USD 6.50 Billion by 2022, at a Compound Annual Growth Rate (CAGR) of 14.6% during the forecast period.Increasing trend of outsourcing various business operations and risk assessment of vendors are major drivers of the vendor risk management market.
Moreover, it is increasingly important for enterprises to identify and mitigate these risks to achieve their business goals and sustain in the intense competition.
Browse in-depth TOC on "Vendor Risk Management Market"71- Tables29- Figures122- PagesDownload PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=227642142Rapid adoption of vendor risk management solutions, owing to strong and well-established economies, is expected to make North America the largest regional market.In the US and Canada, organizations are rapidly adopting and willing to invest in emerging technologies, such as analytics, big data, and cloud platforms.
North America has the first-mover advantage of adopting new technologies, such as smartphones and cloud platform.
Vendor risk management solutions for the BFSI vertical help financial and insurance companies in the audits and financial control of the organizations.The large enterprises segment is expected to gain a larger market share during the forecast period.Organizations with more than 1,000 employees are categorized as large enterprises.
Large enterprises have their customers across various regions and hold high market shares, technical expertise, and effective business strategies.
Vendor risk management is a software-powered system that helps keep track of risk from third-party service providers by proper monitoring and managing.
The growing trends of adopting paperless technologies and systems free from manual operations are among the major factors responsible for this market's constant growth.
Also, the rapid expansion of businesses from local to global markets has increased the dependence on third-party service providers, which has increased the burdens of managing the data with ease and least space for errors.
Factors like low awareness and high dependence on older managing methods have restrained the market's evolution.
As far as the study suggests, the global vendor risk management market will show a 14 % yearly growth.Market DivisionThe vendor risk management market is an immense field and is divided as follows:The global vendor risk management market is characterized as solutions and services in view of components.In view of deployment types, the global vendor risk management market is characterized as on-premise and cloud-based.The global vendor risk management market is characterized by small & medium enterprises (SMEs) and large enterprises, in view of organization size.The global vendor risk management market is characterized by banking, financial services, and insurance (BFSI), manufacturing, healthcare, and others, in view of end-users.Regional ClassificationDemands for vendor risk management are at a high rise because of factors like rapidly expanding industries and rapidly advancing technological environments.
As per the study and market stances, the global market is impelled by the North American region and will be the fastest-growing under the influence of factors like high adoption & demands of revolutionary technologies, presence of supreme market players, high grant values for research & development programs, and others.
Global Vendor Risk Management Market Research Report– Component (Services & Solutions), Solutions (Assessment Management, Quality Management, Contract Management), Deployment (On-Cloud & On-Premise), Organization Size, and by End-users– Forecast till 2027Market HighlightsThe vendor risk management market is expected to have significant growth over the forecast period.
This is due to enhancement in technology which in turn increases sharing and storing in the cloud and economic conditions are driving the outsourced operations of core and non-core activities are anticipated to be some of the fuelling factors for the growth of the vendor risk management market.The vendor risk management market is differentiated by component, deployment, organization size, and end-user.By component, the vendor risk management market is sub-segmented as solutions and services.
On the basis of services, the market is sub-segmented into professional services and managed services.
The professional services are further segregated into consulting services, implementation services, and maintenance & support services.
The solutions are segregated as policy & procedure management, monitoring & performance management, assessment management, compliance management, contract management, quality management, and others.On the basis of organization type, the market is segregated into large enterprise and small & medium enterprise.
Furthermore, on the basis of deployment, the market is sub-divided into on-cloud and on-premises.By end-user, the market is sub-divided into IT & telecom, BFSI, manufacturing, energy & power, healthcare, transportation & logistics, government, and others (media & entertainment and education).Get a Free Sample @ https://www.marketresearchfuture.com/sample_request/5944Key PlayersSome of the key players of vendor risk management market include include IBM Corporation (U.S.), MetricStream (U.S.), Lockpath Inc. (U.S.), Logic Manager (U.S.), Rsam (U.S.), BitSight Technologies (U.S.), RSA (U.S.), Genpact (U.S.), Resolver (Canada), SAI Global (Australia), Optiv (U.S.), Quantivate (U.S.), BWise Internal Control (The Netherlands), RapidRatings (U.S.), ProcessUnity (U.S.), and VendorInsight (U.S.).Regional AnalysisGeographically, the vendor risk management process market is categorized into four different regions namely North America, Asia Pacific, Europe, and the Rest of the World.North America is expected to have a significant growth the vendor risk management market over the forecast period.
Global Vendor Risk Management Analytics Market is expected to reach USD 11.4 Billion by 2026 from USD 2.84 Billion in 2016 at a CAGR of 16.7%.
Global Vendor Risk Management Analytics Market Vendor risk management analytics market is segmented by Component, by Deployment mode, by Organization size, by Vertical & by Geography.
Based on the component market is divided into Service and solution.
Organization size is classified into Large enterprise & Small and medium enterprises (SMEs).
Region wise into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.For more information visit: https://www.maximizemarketresearch.com/market-report/vendor-risk-management-analytics-market/2185/Vender present have also been taken into consideration to determine the market segmentation.
After arriving at the overall market size, the total market was divided into several segments and sub-segments, which were then verified through primary research by conducting extensive interviews with key people, that Chief Executive Officers (CEOs), Vice Presidents (VPs), directors, and executives.Based on vertical, BFSI vertical deals with serious financial data in insurance companies, non-banking financial companies, and payment gateway providers.
