Vendor risk management addresses the risks that could cause a disruption in product and/or service delivery or negatively affect overall business performance.

Given the large number of vendors that organizations rely upon today, risk managers need to develop a prioritized list of strategic vendors that contribute significant business value and are difficult and expensive to replace.

Putting in place a framework to periodically monitor and measure the effectiveness of vendor risk mitigation and controls will improve business performance and help to minimize disruptions resulting from a vendor's inability to deliver.