Vendor Risk Management Market: - An Overview
Vendor Risk Management is an approach of ensuring that the use of vendors and service providers does not create unacceptable potential that creates negative impact on business. It encompasses all the measures that organization can take to prevent potential risk, data breaches, and to ensure continuity in the business. Due to increasing use of technology in business expansion, the complexity of vendor risk management increases. Vendor risk management help businesses to analyze, identify and mitigate potential risk. Vendor risk management is ongoing process that business executes with every vendor entering the supply chain process. Vendor risk management protects businesses threats like financial impact, operational impact, legal and reputation impact.
Impact of COVID-19 Pandemic Outbreak on Vendor Risk Management Market
COVID-19 pandemic is challenging businesses to think in different ways. The disruption caused by pandemic have left deep impact on supply chain. In the pandemic situation many organizations are accelerating their reliance on third party vendors, suppliers and partners which are also accelerating risk. According to survey by Banadio Group firm, 76% of respondent said that they have experienced many issues that impacted vendor performance and 55% respondent indicated that vendors have done compliance violation. The survey also highlighted that due to change in business models, third party vendors pose serious risk of disruption due to which businesses can witness loss of revenue and non- availability of services. So it is important for organization to focus on discovering the contracts across organization and make it digitally accessible to drive business value and insight.
Organizations are adopting vendor risk management system to reduce cost, avoid unnecessary expenditures, and avoid breaches with better risk intelligence. Adoption of vendor risk management is increasing in this pandemic situation as it helps organization to identify the critical suppliers so that organization can find a way to easily replace or backup dual supplier to reduce risk of failure. The Vendor Risk Management has generated revenue of approximately US$ 3.0 Bn in 2019 and is expected to witness growth of nearly 15% during Q2-Q4, 2020. However, the longevity of the COVID-19 crisis will lead organizations to adopt vendor risk management systems to reduce the efforts for identifying the key parameters of vendor performance and to identify the critical issues in sourcing products and services from third party vendors.
Vendor Risk Management Market: - Market Dynamics
Need for Vendor Risk Intelligence is Spurring the Market Growth
Vendor risk management is necessary step for organization to protect against fraud. It helps organization to choose partners that are capable of delivering products and services. To acquire new vendors in the business, organization needs to negotiate and to beat the competition, organization adopt vendor risk management to know the risk profile of a vendor that gives them leverage to warn the vendor regarding their behavior change in certain ways. It is also used as tool for negotiating the price, as organization seek to reduce the cost of vendor to allocate funds towards risk mitigation. However, this tool helps organization in cost reduction, that results positive impact on business and vendor relationship.
Increasing Demand for Cloud-based Solutions among the SMEs
Demand is increasing for cloud-based vendor risk management solution among the small and medium enterprises (SMEs) as cloud-based solution helps SMEs to efficiently and effectively assess and monitor both new and existing vendors right from initial on-boarding to ongoing due diligence and monitoring. Cloud-based vendor risk management solution provides real time visibility into state of vendors’ risk. However, due to beneficial features of cloud-based solution such as high scalability, flexibility, 24x7 support and other benefits, the demand is increasing among the SMEs.
Vendor Risk Management Market: - Key Players
The key players in the Vendor Risk Management are MetricStream Inc., IBM Corporation, LogicManager Inc, BWise B.V., LexisNexis Group Inc., LockPath Inc., Genpact Limited, Relational Security Corporation, among others.
Vendor Risk Management Market: - Segmentation
By Component, Vendor Risk Management Market is segmented into-
By Deployment, Vendor Risk Management Market is segmented into-
By Enterprise Size, Vendor Risk Management Market is segmented into-
By Industry, Vendor Risk Management Market is segmented into-
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain of the global Vendor Risk Management market. The report provides an in-depth analysis of parent market trends, macroeconomic indicators and governing factors along with Vendor Risk Management market attractiveness as per segments. The report on Vendor Risk Management market also maps the qualitative impact of various factors on Vendor Risk Management market segments and geographies.
Vendor Risk Management Market- Report Highlights: