Term: Vendor Risk Assessment (VRA)
The vendor risk assessment (VRA) process identifies and evaluates potential risks posed by vendors’ operations and products; it can have a significant impact on your organization.
What is a Vendor Risk Assessment?
Vendor Risk Assessment is usually part of a dedicated procedure aimed at ensuring that vendors are in line with the company’s privacy and security policies.
Why is Vendor Risk Assessment Important?
It is possible for vendor relationships to expose your company to organizational, cyber, and privacy risks. These risks may include data breaches, legal violations, and mishandling of personal data.
To make better decisions and mitigate possible risks, it’s important to assess whether a vendor might pose a significant risk to your business.
How To Do A Vendor Risk Assessment?
A vendor risk assessment is usually conducted manually and via questionnaires by the Chief Security Officer or a team of security officers, in conjunction with the General Counsel, Data Protection Officer, and other GRC specialists.
This process, however, is time-consuming and resource-intensive. Instead, you can look up your vendors on hoggo (for FREE) and view their risk profile and Trust Grade.