When organizations use a standard scoring model for Vendor Risk management, consistency increases, subjectivity decreases and the processes within the program become quicker and more efficient. A consistently used scoring model helps in prioritization of depth and reach in due diligence and helps in the overall effectiveness of risk mitigation because resources are directed toward the vendor relationship that has the most potential risk. ProcessUnity just released an ebook that outlines the latest thinking in vendor risk scoring and scoping as well as key information on how to:
· Rank vendors by criticality
· Increase quantity and quality of vendor self-assessments
· Remediate issues faster
· Assess overall vendor performance
· Quickly compile reports for management and regulatory reviews
One key take away from this best practices document is to “keep it simple.” Scoring doesn’t have to be complicated and complex but should grow with your vendor program and iterate over time.
Another part of the paper looks at inherent risk vs residual risk while yet another looks at numeric scoring vs issue-based scoring… but I’m not going to tell you about that because The Best Practices Guide to Vendor Risk Scoring is worth the read and I don’t want to spoil the end!
Click to download: The Best Practices Guide to Vendor Risk Scoring
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