What is Vendor Risk Management (VRM)?

Vendor risk management, or VRM, is a program within an organization that is responsible for identifying and remediating risks associated with vendors.


Vendor risk management, or VRM, is a program within an organization that is responsible for identifying and remediating risks associated with vendors. What is a vendor? While sometimes used interchangeably, a vendor is included under the umbrella term “third-party” and most often is a service provider or information technology (IT) supplier.

Over the past couple of years, the pandemic has caused a sudden influx in vendor and third-party dependency as people left their cubicles and settled into their home offices under the guise of strict work from home (WFH) policies. With so many people connecting to their businesses remotely and sending and storing important information in cloud systems, it has never been this important to have a strong VRM strategy in place. Components of a solid VRM strategy include things like:

  • Upholding vendor contracts
  • Analyzing current third-parties and optimizing where necessary
  • Compliance
  • Understanding the flow of data and who has access to that data
  • Monitoring security controls
  • Managing risk mitigation efforts

All of these components can be achieved effectively via robust and optimized tools and programs. ServiceNow provides tools that offer automated assessments, transparent reporting, and consistent remediation of your supply chain. With features like:

Vendor tiering — Allows you to establish an appropriate frequency and assessment cycle of your vendors via a tiering process.

Portfolio management — Eliminates spreadsheets and manual tracking with a single database of vendors, the products and services they fulfill, contacts, and a self-service portal for easy vendor updating.

Assessment management — Use built-in SIG questionnaires or create one with the drag and drop designer. Online assessments for vendors or engagements result in faster response and better information.

Vendor portal — Consolidate communication and collaboration with vendor stakeholders to improve efficiency, visibility into the status of assessments and issues, and keep a record of it all.

Issues and remediation — Automate issue generation, design remediation plans, and share them with vendors for faster closure. Use built-in chat to respond and resolve vendor questions in real-time.

The benefits of optimized Vendor Risk Management tools

Being able to orchestrate your VRM strategy in such a way that streamlines and optimizes every aspect of the process provides many benefits, including:

  • Greater visibility — into the status of assessments, issues, and tasks across your vendor ecosystem.
  • Improved decision-making — Identify emerging risks using assessments and continuous monitoring.
  • Increased performance — Improve collaboration while automating processes and consistent workflows across your vendor ecosystem.
  • Manage risk across your extended enterprise — Aggregated vendor risk scores and integration with the GRC portfolio.

Having access to the appropriate tools and training is of chief importance to ensure an effective, efficient, and scalable VRM program that will grow with your business. As we continue to digitize our operations moving forward, vendor risk management will (and should) remain a priority in your organization. Reach out today to find out how NewRocket can help your organization get a vendor risk management program up and running in just 8-10 weeks.

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What is Vendor Risk Management (VRM)?

Vendor risk management, or VRM, is a program within an organization that is responsible for identifying and remediating risks associated with vendors.

Knowledge Wrap Video

The event provided a vibrant platform for reconnecting with peers, delving into AI transformation, and driving innovation with purpose. Read on to discover how NewRocket made its mark at Knowledge 2024.

What We Learned

From recent insights gathered, we learned that ServiceNow customers are increasingly receptive to adopting AI solutions and ServiceNow has the tools to embrace that head on. However, there's a gap in AI use-cases for more mature users, highlighting the need for a creative approach to accommodate their business needs.

In navigating AI adoption, organizations are challenged to find the delicate balance between embracing innovation and avoiding dependency on emerging technologies. Advisory consulting and trusted guidance beyond initial queries spark interest, particularly around AI's impact on operations. Read our AI blog series to learn more about our approach.

Excitement around GenAI is apparent, with most users eager to explore its potential benefits and invest in quick wins. Notably, advanced use cases like process mining are gaining traction. Key solution themes include interest in native mobile applications, Employee Center migration, and the urgent need for enhanced data capabilities.

Recognitions and Awards

ServiceNow Americas Employee Workflow Partner of the Year

The ServiceNow Americas Employee Workflow Partner of the Year award celebrates Partners' exceptional efforts in enhancing employee experiences through innovative collaborations and technology solutions. Learn More.

UK Public Sector Partner of the Year Award

The ServiceNow UK Public Sector Partner of the Year underscores  Partners' dedication to driving digital transformation and delivering exceptional outcomes for public sector organizations in the UK.

ServiceNow.org Partnership for Good Grant

The ServiceNow.org Partnership for Good Grant highlights Partners' commitment to leveraging technology for social impact and driving positive change in communities around the world. Learn More.

Top 10 Finalist for ServiceNow Best Employee Portal of the Year

ServiceNow's Best Employee Portal of the Year award recognizing Partners' dedication to creating innovative solutions that empower employees and enhance workplace experiences. Learn More.

NewRocket Booth

At ServiceNow's Knowledge 24 event, we connected with 350+ attendees at our booth, showcasing how NewRocket supports organizations on their ServiceNow journey. AI emerged as a key topic, reflecting the growing interest in its potential across businesses. Our strategic advisory approach, FlightPath, aligns technology with business objectives, drawing on our expertise in customer, employee, technology, and security transformation. Plus, we captivated attendees by transforming them into astronauts using AI. See the photo booth results here!

Workshops and Speaking Sessions

Beyond Personas: Developing Holistic Frameworks to Personalize User Solutions

Industry innovation: Consilio’s Transformation Journey on ServiceNow

Dive Into Prototyping to Accelerate Validation With Design Libraries

Make Better Business Decisions by Integrating Risk and Compliance

Participating in ServiceNow's Knowledge sessions and workshops this year was truly enriching. Interacting with customers and partners provided invaluable insights into the future state of ServiceNow and allowed us to have in-depth discussions on how we can collectively offer better experiences across various facets of the platform. From exploring advanced AI integrations to optimizing workflow processes, the conversations were not only enlightening but also inspiring, fueling our commitment to innovation and excellence in the ServiceNow ecosystem. We can't wait to see you next year!

NewRocket Party

Our poolside event at the Capri restaurant in Las Vegas provided a refreshing break from the conference hustle, allowing us to unwind and connect with friends, colleagues, partners, and customers in the cool open air. As the night progressed, we loved creating unforgettable memories and strengthening our bonds within the ServiceNow community.