Glossary definition: Supplier Risk Management

Supplier Risk Management: Minimizing Risk for Your Business

Supplier Risk Management is the process of identifying, assessing, and mitigating the risks associated with working with suppliers and other third parties. It involves evaluating the potential risks associated with a supplier’s operations, such as financial stability, quality of goods or services, delivery times, and compliance with regulations, and taking steps to reduce or eliminate those risks. This process also involves maintaining regular communication with suppliers to ensure they are meeting their contractual obligations and to address any issues that arise. Additionally, supplier risk management includes developing policies and procedures to ensure the security of the supplier’s data, as well as monitoring the supplier’s performance on an ongoing basis. By implementing a comprehensive supplier risk management program, organizations can ensure that their suppliers are reliable, trustworthy, and compliant with applicable laws and regulations.