IT Vendor Risk Management is the process of assessing, monitoring and managing the risks associated with the use of external vendors (third-party vendors) that are involved with an organization’s systems or data, such as cloud service providers, software companies, technology partners, and more.

As many organizations rely on external vendors for their IT operations, the risks that may arise include data breaches, attacks through the vendor’s systems, or violations of security regulations or laws.

An IT Vendor Risk Management system helps organizations to:

• Thoroughly assess the risks of each vendor.
• Continuously monitor the security status of vendors.
• Ensure compliance with security standards and regulations.
• Reduce the likelihood of damage from vulnerabilities caused by third parties.
  
  

Such tools enable organizations to assess and evaluate vendors, providing real-time information about the risk levels of each vendor. This helps organizations make informed decisions and effectively reduce risks associated with external dependencies.