Market Overview
The Global vendor risk management market is estimated to a reach approximately USD 15.6 billion market value at a growth of 13.30% CAGR by the forecast period 2023 to 2032, since the market was valued USD 5.7 Billion in 2023. Vendor risk management procedure is implemented to control, identify, monitor, and access a wide number of potential risks associated with an organizational operation that are managed by the third party service providers. Some of the risks involved are operational risks, strategic risk, compliance risk, information security risks, and many more.
According to this market research analysis report, it is accounted that the major growth drivers of global vendor risk management market size are increasing rate of outsourcing operational abilities by organizations, increasing need for economic management, rising availability of third party management service providers, etc. Moreover, the higher adoption rate of virtual applications is another positive factor in contributing to vendor risk management market demands.
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Market Segmentation
Many segmentations are made into the vendor risk management market, which are on the basis of component, deployment model, organization size, end-users, and geographical regions. According to the components market segment, the market is segregated into solutions and services.
The deployment model segment of the global vendor risk management market is again sub-segmented into premises and cloud.
Further, the organization size segment has divided global risk management market into small, medium, and large enterprises sub-segments.
On the basis of end-user segment, the vendor risk management market is divided into banking, financial services, and insurance, IT and telecom, health care and life sciences, retail on consumer goods, government and defense, energy and utilities, manufacturing, and others.
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 on various vendors and third-party partners to meet their operational needs. While these collaborations bring numerous benefits, they also introduce risks that can compromise data security, disrupt operations, and damage the organization's reputation. This is where Vendor Risk Management (VRM) comes into play. In this article, we will explore the concept of Vendor Risk Management and discuss effective strategies to mitigate risks associated with vendor relationships.
- Understanding Vendor Risk Management: Vendor Risk Management is a systematic approach that enables organizations to assess, monitor, and mitigate risks associated with their vendors and third-party relationships. It involves evaluating potential risks, establishing risk mitigation controls, and continuously monitoring the vendors' performance and compliance with established standards.
- Identifying Vendor Risks: To effectively manage vendor risks, organizations need to identify and categorize potential risks. These risks can include data breaches, compliance violations, supply chain disruptions, financial instability, and reputational damage. Conducting thorough due diligence and risk assessments on potential vendors can help identify any inherent risks and select reliable partners.
- Establishing a Risk Management Framework: Developing a comprehensive risk management framework is essential for effective VRM. This framework should include risk assessment methodologies, vendor selection criteria, contractual agreements, monitoring processes, and incident response plans. By establishing a robust framework, organizations can proactively address vendor risks and ensure compliance with industry regulations.
- Conducting Vendor Due Diligence: Before entering into a vendor relationship, it is crucial to perform due diligence to assess the vendor's capabilities, security measures, financial stability, and track record. This process involves evaluating the vendor's reputation, conducting background checks, and reviewing their security controls and certifications. By selecting vendors with a strong commitment to security and compliance, organizations can minimize potential risks.
- Implementing Vendor Risk Mitigation Controls: Once vendors are onboarded, organizations should implement risk mitigation controls to safeguard their data and operations. These controls can include regular security audits, vulnerability assessments, data encryption, access controls, and incident response plans. Additionally, organizations should establish clear communication channels with vendors to promptly address any emerging risks or concerns.
- Continuous Monitoring and Performance Evaluation: Vendor relationships require ongoing monitoring to ensure continued compliance and risk mitigation. Organizations should regularly assess the vendor's performance, review security controls, and conduct periodic audits. This helps identify any deviations from agreed-upon standards and enables timely corrective actions.
- Developing a Vendor Exit Strategy: Despite careful risk management, there may be instances where terminating a vendor relationship becomes necessary. Organizations should develop a vendor exit strategy that outlines the process for transitioning services to a new vendor or bringing them in-house. A well-defined exit strategy ensures minimal disruption and protects the organization's interests.
Conclusion:
Vendor Risk Management is a vital component of an organization's overall risk management strategy. By implementing robust VRM practices, organizations can protect their data, operations, and reputation from potential risks associated with vendor relationships. It is crucial to continuously assess and monitor vendors, establish effective risk mitigation controls, and develop contingency plans to ensure a secure and resilient business environment.
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 global 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 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.
