Why is Vendor Management Important?

Bringing in vendors to make your business successful is inevitable. From web hosting to suppliers to finances, it is almost impossible for a company to run without being connected to other companies in some way. It makes perfect business sense. Why try and hire employees to do all of those small jobs when you can “outsource” the work to a companies specifically designed with that expertise?

Our interconnectivity is what makes vendor management so important though. For example, if you use a third party website for online purchases, that vendor is gaining access to your client’s private data. If that company experiences a breach, it will fall on you to inform your customers that their information could be compromised. Their distrust will be projected onto your business more than the third party company, hurting you in the long run.

Vendor management

How Do I Manage My Vendors?

With increasing regulations on cyber security and data privacy, chances are your vendors are expected to comply with governing standards for their industry. Vendor management is simply tracking their compliance, not only at the time you form a business relationship, but as the years pass as well. If you have multiple vendors linked to your business, this can become overwhelming very quickly.

CyberCompass offers vendor management built into our tool. Choose your vendors from our preloaded database or add your own. Keep all your documentation, such as you Mutual Non-Disclosure Agreement (MNDA), stored in our encrypted vault. Track their yearly risk assessment to ensure they are doing their due diligence to protect your customers’ data.

Keeping your own documentation can protect you in the event of a breach. Read our case study of helping a business avoid a fine by determining the breach was caused by a vendor.

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