Vendor Risk Management Market Size, Share, and COVID Impact Analysis, By Solution (Vendor information Management, Contract Management, Financial Control, Compliance Management, Audit Management, and Quality Assurance Management), By Deployment (Cloud and On-premise), By Enterprise Type (Large Enterprises, and Small and Medium Enterprises (SMEs)), By Industry (BFSI, Manufacturing, IT and Telecom, Energy and Utilities, Healthcare, Retail and Consumer Goods, and Others), and Regional Forecast, 2025-2032

Vendor risk management (VRM) guarantees that using IT suppliers and service providers does not produce an improper potential for business disturbance or a negative impact on business performance. VRM technology aids enterprises in managing, assessing, and monitoring risk exposure from third-party suppliers (TPSs) that access enterprise information or offer IT products and services.

Enterprises rely on many third-party vendors in different localities to accomplish their business goals. Cooperating with these vendors frequently seems challenging for enterprises as they may bring different threats, negatively impacting their business processes and objectives. Thus, enterprises use vendor risk management in their business processes to eradicate such risks.

The vendor risk management market is fuelled by the growing implementation of vendor risk management solutions to manage complex vendor ecosystems proficiently and the increasing need among enterprises to minimize the risk associated with managing several vendors. Moreover, the rising demand for vendor risk management solutions in highly regulated sectors like healthcare, manufacturing, and banking is anticipated to offer several opportunities for stakeholders during the forecast period. For instance,

• In December 2022, EY acquired ifb SE, a consultancy based in Germany and will now be known as EYifb. This acquisition strengthened EY’s finance and risk transformation and compliance capabilities, benefitting its clients.

However, the dependence of enterprises on conventional and manual processes to manage risks is hampering market growth.

Impact of COVID-19 on the Vendor Risk Management Market

The initial stage of the COVID-19 pandemic presented numerous challenges for enterprises dealing with vendors, as lockdowns and government restrictions worldwide disrupted global supply chains. Industries such as manufacturing, banking and finance, retail and consumer goods, and energy experienced a significant decline in vendor risk management solutions. However, these industries faced increased risks associated with vendors, making such solutions crucial. On the other hand, the healthcare and IT and telecommunications sectors witnessed a rapid surge in adopting these solutions. Thus, the global market for vendor risk management is expected to be moderately impacted by the pandemic.

Segmentation

By Deployment – The cloud-based is expected to dominate the market owing to its numerous benefits to enterprises, such as scalability, low maintenance, and affordability. Moreover, the increasing adoption of hybrid cloud solutions, which aid businesses in improving operations, optimizing costs, modernizing applications, and enhancing user experience, is anticipated to boost the market during the forecast period. In addition, organizations’ growing interest in updating their IT infrastructure by implementing cloud-based systems is expected to fuel market growth. For instance,

• In May 2023, Vanta, a provider of security and compliance solutions delivered through Software-as-a-Service (SaaS), introduced a Vendor Risk Management (VRM) offering, which assists organizations in simplifying the process of conducting security reviews.

In emerging countries, numerous organizations face a shortage of technical expertise among their employees, making it difficult for them to operate with cloud-based platforms effectively. This factor has further contributed to the growth of the on-premise.

Key Insights

The report will cover the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by the Key Players


• Impact of COVID-19 on the Global Vendor Risk Management Market


• Consolidated SWOT Analysis of Key Players

Regional Analysis

The global vendor risk management market is distributed into five regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

North America dominates the market as enterprises increasingly rely on vendor risk management solutions to effectively handle the risks associated with vendors. In addition, the global market leaders in the region offer a wide range of solutions at affordable prices, which is expected to dominate the global market.

Asia Pacific is expected to hold the highest CAGR throughout the forecast period owing to a rapid increase in the disposable income of consumers in countries like China, Japan, India, and South Korea. Moreover, the growing demand for digital transformation among companies in remote areas and increasing awareness of vendor risk management among regional enterprises is expected to fuel the growth.

The distribution of the global vendor risk management market by region of origin is as follows:

• North America – 32%


• South America – 7%


• Europe – 24%


• Middle East and Africa – 12%


• Asia Pacific – 25%

Key Players Covered

The key players in this market include BitSight Technologies, Vanta, UpGuard, Inc., Genpact Limited, MetricStream, Optive Security, Inc., Rapid Ratings International, Inc., Resolver, Inc., RSA Security LLC, SAI Global, Quantivate, LLC, BWise, Rsam, IBM Corporation, and others.

Segmentation

Key Industry Developments

• May 2023: Vanta, a major trust management platform, introduced its Vendor Risk management (VRM) solution, providing organizations with a means to expedite, automate, and streamline security reviews for third-party vendors. The solution minimizes the time and expenses associated with reviewing, managing, and reporting third-party vendor risks, benefitting security experts.


• September 2022: Bitsight acquired ThirdParty Trust, a Third-Party Risk Management (TPRM) tool provider, which allows them to provide a complete end-to-end solution for global vendor risk management teams. The addition of third-party trust strengthens and expands Bitsight’s capabilities, enabling organizations to manage risks associated with their vendors globally effectively.