In today's interconnected world, businesses rely heavily on vendors for a vast array of services. While these partnerships offer numerous advantages, they also introduce potential risks. This is where Vendor Risk Management (VRM) comes in – a crucial practice for identifying, assessing, and mitigating risks associated with third-party vendors.

What is ServiceNow Vendor Risk Management (VRM)?

ServiceNow Vendor Risk Management (VRM), now known as ServiceNow TPRM is a comprehensive solution embedded within the ServiceNow Governance, Risk, and Compliance (GRC) platform. It empowers organizations to streamline and automate their vendor risk management processes. This translates to a centralized system for managing your vendor portfolio, facilitating risk assessments, and ensuring ongoing compliance.

Who Can Use ServiceNow's Vendor Risk Management?

ServiceNow VRM caters to a wide range of businesses seeking to strengthen their vendor relationships and build organizational resilience. It's particularly valuable for:

Procurement Teams: Streamline vendor onboarding, manage contracts, and track performance.

Risk Management Teams: Identify, assess, and prioritize vendor risks across the organization.

Compliance Teams: Ensure adherence to regulations and industry standards regarding vendor relationships.

IT Security Teams: Evaluate the security posture of vendors and mitigate potential data breaches.

Features of ServiceNow Vendor Risk Management

ServiceNow VRM offers a robust feature set for comprehensive vendor risk management:

Centralized Vendor Management: Create a single repository for all vendor information, including contracts, risk assessments, and performance data.

Automated Workflows: Streamline vendor onboarding, risk assessments, and renewal processes with pre-defined workflows.

Risk Assessments: Conduct comprehensive assessments to identify potential security, financial, operational, and reputational risks associated with vendors.

Customizable Risk Scoring: Tailor risk scoring models to your specific industry and risk tolerance.

Vendor Self-Assessments: Facilitate efficient risk assessments by allowing vendors to submit information securely.

Remediation Management: Assign and track corrective actions to address identified vendor risks.

Reporting & Analytics: Generate insightful reports to gain visibility into vendor risk posture and track progress over time.

The Rising Significance of Vendor Risk Management

The increasing reliance on third-party vendors exposes businesses to a broader attack surface. Here's why VRM is more crucial than ever:

Cybersecurity Threats: Data breaches and cyberattacks are a growing concern. Vendor security vulnerabilities can significantly impact your organization's security posture.

Regulatory Compliance: Stringent regulations like GDPR and CCPA necessitate a robust VRM program to ensure vendor compliance with data privacy laws.

Supply Chain Disruptions: Global events can disrupt critical supply chains. Effective VRM helps identify and mitigate risks associated with supplier disruptions.

Aavenir offers seamless integration with leading platforms including, ITSM, GRC, VRM, and others. Our latest video focuses on the integration of Aavenir Contractflow with ServiceNow VRM, revolutionizing the way you manage vendor risks. Watch Video

Unmasking Hidden Business Vulnerabilities

Traditional, manual VRM processes are often inefficient and error-prone, potentially leaving hidden vulnerabilities undetected. ServiceNow VRM tackles this challenge by:

Automating Manual Tasks: Freeing up valuable resources by automating repetitive tasks like data collection and risk scoring.

Standardizing Processes: Ensuring consistency and reducing the risk of human error in VRM processes.

Enhancing Collaboration: Facilitating communication and collaboration between different departments involved in vendor risk management.

The Role of ServiceNow in Vendor Risk Management

ServiceNow VRM plays a vital role in mitigating vendor risks by:

Proactive Risk Identification: This helps you identify potential risks before they materialize and disrupt your business operations.

Improved Decision-Making: Equipping you with data-driven insights to make informed decisions regarding vendor selection and management.

Enhanced Vendor Relationships: Fostering trust and transparency with your vendors through a collaborative risk management approach.

Benefits of Vendor Risk Management

Investing in a robust VRM program like ServiceNow VRM yields numerous benefits:

Reduced Risk of Data Breaches: Minimize the risk of data breaches and cyberattacks by ensuring your vendors maintain adequate security controls.

Improved Regulatory Compliance: Demonstrate compliance with data privacy regulations by actively managing vendor risks.

Enhanced Business Continuity: Mitigate disruptions caused by supplier issues through proactive risk identification and mitigation.

Cost Savings: Avoid potential financial losses by identifying and addressing vendor-related risks before they escalate.

Stronger Vendor Relationships: Build trust and collaboration with your vendors through a structured VRM program.

By leveraging ServiceNow VRM, organizations can gain a comprehensive view of their vendor risk landscape, proactively manage vulnerabilities, and build stronger, more resilient business relationships.

Schedule a Demo with our team to learn more about ServiceNow VRM integration