The expansion of digital business, growth of cloud services and increasing regulatory scrutiny of third-party vendor relationships are just a few factors placing a heightened focus on vendor risk management.
But not every vendor relationship is created equal. A true, risk-based approach requires organizations to first segment their vendors based on pre-determined criteria, and then establish an appropriate level of ongoing due diligence and oversight activities based on the assigned level of risk. And while the specific activities may vary across organizations, there are three types of risk you want to be sure to address.
Improper vendor management leads to duplication of accountabilities and capability gaps and overlaps, which can result in increased costs and missed business opportunities.
Organizations should clearly define sourcing, procurement and vendor management (SP&VM) roles as well as shared objectives. In doing so they unlock efficiencies and maximize the contribution of their organizations vendors.
When we stop and think about what Independence means to so many, I believe many of us forget why independent thinking is so important. Much like our forefathers did 242 years ago, they took a stance on independence by thinking “independently”.
These thoughts allowed those brave men and women to over throw the tyranny of rule at that time, and use this independent thinking to drive away from the dictatorship they were under and strive for freedom of: Religion, Speech, Press, Peaceful Assembly and to Petition to Government for a Redress of Grievances.