Vendor Risk Management

Vendor risk management is the process of assessing, monitoring, and mitigating security, compliance, and operational risks posed by third-party AI service providers and technology vendors. For enterprises, this practice is critical because external vendors often have access to sensitive data, intellectual property, and critical systems, making their security posture directly affect organizational risk. Effective vendor risk management includes due diligence assessments, contractual controls, ongoing performance monitoring, and incident response protocols to ensure vendors meet enterprise governance and regulatory standards.

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