Vendor risk assessment: A strategic pillar for every business

Do you really know the risks you're taking when outsourcing critical services and operations?

Many companies only realize the danger when it’s too late—when security has already been breached, operations disrupted, and financial, legal, and reputational damage has taken its toll.

A 2024 study on third-party risk management by Mitratech¹ revealed that 61% of companies experienced data breaches due to vulnerabilities in their third-party ecosystem—a 49% increase from 2023 and triple the rate seen in 2021.

This is a wake-up call: Third-Party Risk Management (TPRM) is no longer optional. It’s essential to protect your business and make it more agile and resilient.

Why vendor risk assessment is a must-have today

To safeguard your company’s IT security

IT vendors, external collaborators, and consultants often have access to your systems and sensitive data. If they lack proper security measures, they can become an open door for cyberattacks and data theft.

A thorough assessment of their security protocols helps you spot vulnerabilities before they become real threats.

To ensure data protection and GDPR compliance

When a vendor processes personal data on your behalf, you share the responsibility for protecting that information. If they fail to comply with privacy and security regulations, your company could face fines, lawsuits, and reputational damage.

Evaluating how vendors manage data allows you to verify their GDPR compliance and prevent costly violations.

To strengthen operational resilience

An unreliable vendor—whether due to inefficiency, financial instability, or failure to meet SLAs—can disrupt production, delay deliveries, and compromise service quality, directly impacting your customers and bottom line.

Risk assessments help you identify operational weak points and dependencies, boosting your ability to respond to unexpected events and maintain business continuity.

To build a sustainable, ESG-compliant supply chain

Today’s businesses are expected to ensure their supply chains meet Environmental, Social, and Governance (ESG) standards. Sustainability is no longer just a branding issue—it’s a concrete requirement from customers, investors, and regulators.

A vendor that doesn’t align with ESG principles can damage your reputation, cost you business opportunities, and even disqualify you from grants or tenders.

Assessing vendors through an ESG lens helps you build a responsible, resilient supply chain that meets market expectations.

Reduce risk with the right rools

Vendor risk assessment involves multiple stakeholders and requires evaluating vendors across a range of indicators—reviewing certifications, policies, and procedures, issuing detailed questionnaires, requesting remediation plans, and monitoring risk in real time.

With a centralized, AI-powered vendor risk management solution, you can turn this complex process into a competitive advantage—minimizing risk, saving time, and fostering cross-functional collaboration.

Make risk management simpler, smarter, and more strategic

Visit our dedicated page to learn how Cegeka can help you centralize and automate vendor assessments—integrating regulatory compliance (GDPR, ISO, DORA, NIS2) and IT security into a single, scalable, intelligent solution. Powered by our AI compliance module developed in partnership with expert.ai.

¹ Mitratech is a trusted global technology partner for corporate legal, risk, and compliance teams. Source: The 2024 Third-Party Risk Management Study.