Evaluate vendor risk across security posture, compliance, financial stability, operational resilience, and data handling. Make informed third-party risk management decisions with weighted scoring.
Evaluate vendor risk across security posture, compliance, financial stability, operational resilience, and data handling. Make informed third-party risk management decisions with weighted scoring.
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Third-party vendor risk management (TPRM) is critical for protecting your organization from supply chain attacks, data breaches, and compliance violations. Our calculator evaluates vendors across five key risk factors, weighted by industry standards, and adjusts scoring based on business criticality to provide actionable risk assessments.
Vendor risk assessment evaluates third-party partners across Security Posture (30%), Compliance (25%), Financial Stability (15%), Operational Resilience (15%), and Data Handling (15%). Scores are inverted and multiplied by a criticality factor (1.5x for critical vendors, 0.75x for low-criticality) to produce an overall risk score from 0-100.
Risk Calculation
Risk Score = (100 - Weighted Factor Score) × Criticality Multiplier98% of organizations have vendors that experienced breaches. Assess and mitigate supply chain risks before they impact your business.
HIPAA, GDPR, SOC 2, and PCI-DSS require vendor due diligence. Document your risk assessment process for auditors.
Make data-driven vendor selection and retention decisions based on quantified risk scores, not gut feelings.
Focus remediation efforts on critical vendors and highest-risk factors to maximize security investment ROI.
Use risk assessments to negotiate stronger security requirements, SLAs, and contractual protections.
Evaluate prospective vendors before engagement to ensure they meet your security requirements.
Conduct periodic reassessments to identify vendors whose risk profiles have changed.
Assess inherited vendor relationships during M&A transactions to identify hidden risks.
Quickly assess affected vendors when supply chain breaches are disclosed.
Prioritize vendor security investments based on risk scores and business criticality.
Present vendor risk metrics to leadership and board for governance oversight.
Third-party vendor risk refers to the potential threats and vulnerabilities introduced when your organization shares data, systems, or processes with external vendors. This includes security risks (data breaches), compliance risks (regulatory violations), operational risks (service disruptions), and financial risks (vendor bankruptcy).