Introduction: Navigating the Evolving Landscape of Vendor Risk Management
The escalation of competition in the VRM market is accelerating in the midst of rapid technological change and heightened regulatory scrutiny. The leading players in the VRM space—OEMs, system integrators, infrastructure companies, and AI-enabled start-ups—are pursuing leadership by deploying solutions that meet the expectations of consumers and regulators. Using data, analytics, automation, and IoT integration, these players are changing the game and enabling their customers to enhance risk assessment and compliance. Biometrics and greener technology are not only improving efficiency but also aligning with consumers’ concerns about the environment. These trends are driving the market to grow in the next five years. The growth opportunities will be especially promising in regions that are pursuing digital transformation and advanced risk management.
Competitive Positioning
Full-Suite Integrators
These vendors offer a full suite of solutions that integrates various aspects of vendor risk management into a single platform.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| IBM Corporation (U.S.) |
Robust analytics and AI capabilities |
Enterprise risk management |
Global |
| MetricStream (U.S.) |
Strong compliance and governance features |
GRC and vendor risk management |
Global |
| Genpact (U.S.) |
Process transformation expertise |
Operational risk management |
Global |
Specialized Technology Vendors
Those who deal with special problems of the management of suppliers and of risk, often relying on advanced technology, are to be regarded as a separate category.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| BitSight Technologies (U.S.) |
Cyber risk ratings and insights |
Cybersecurity risk assessment |
Global |
| Rsam (U.S.) |
Customizable risk management solutions |
Risk and compliance management |
North America |
| RapidRatings (U.S.) |
Financial health analytics |
Financial risk assessment |
Global |
| ProcessUnity (U.S.) |
User-friendly interface and automation |
Vendor risk management |
North America |
Consulting and Advisory Services
These suppliers offer consulting services to help organizations develop and implement their vendor risk management strategies.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| Optiv (U.S.) |
Holistic cybersecurity approach |
Cybersecurity consulting |
North America |
| LogicManager (U.S.) |
Integrated risk management framework |
Risk management solutions |
North America |
| Quantivate (U.S.) |
Comprehensive risk management software |
GRC and vendor management |
North America |
Emerging Players
Often, these vendors are new to the market, bringing new ideas and a new approach to vendor risk management.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| Lockpath Inc. (U.S.) |
Focus on risk management automation |
GRC solutions |
North America |
| VendorInsight (U.S.) |
Real-time vendor performance tracking |
Vendor performance management |
North America |
| Resolver (Canada) |
Integrated risk and incident management |
Risk management software |
North America |
| SAI (Australia) |
Local market expertise |
Vendor risk management |
Australia |
Emerging Players & Regional Champions
- RiskLens (US): RiskLens specializes in quantitative risk management solutions. RiskLens helps organizations to evaluate and manage the risks of their suppliers by a risk quantification method. Recently, several companies in the Fortune 500 have contracted RiskLens to enhance their supplier risk management processes, thereby challenging the existing, largely qualitative methods of established vendors.
- (b) CYBERGRX (USA): Offers a platform for third-party risk management that allows companies to monitor their suppliers in real time. They have just signed a contract with a large financial institution to use their platform to complement their existing vendor management system by providing deeper insights into cyber risks.
- SaaSOptics (USA): SaaSOptics specializes in financial automation for SaaS companies, including vendor risk management by financial visibility and compliance. They have recently implemented with a major SaaS provider, proving their ability to integrate financial and vendor risk management, and challenging the traditional vendors.
- Sift (USA): Provides a digital trust and security platform with vendor risk management capabilities, especially in fraud detection and prevention. Their recent partnership with e-commerce platforms demonstrates their unique approach to integrating vendor risk with transaction security. This complements the offerings of fraud prevention vendors.
- Zywave (US): Offers a vendor risk management solution, tailored for the insurance industry, with a focus on risk assessment and compliance. This solution complements the more general vendor risk management solutions. Recent contract with a large insurance company shows this niche specialism.
Regional Trends: In 2023 there is a notable increase in the use of vendor risk management solutions in North America, prompted by regulatory requirements and the need for improved cyber security. Companies increasingly look for specialized solutions that can be integrated into existing systems, and this leads to a growing number of alliances between emerging players and established vendors. In addition, there is a growing tendency towards the use of risk assessment tools with a more quantitative approach, as companies look to move away from qualitative methods.
Collaborations & M&A Movements
- RiskLens and RSA have signed a partnership agreement to integrate risk-related data into RSA's security solutions.
- RiskOptics, a platform for managing vendor risk, has been acquired by OneTrust. This will enhance OneTrust’s capabilities in risk assessment and compliance, and further increase its market share in the privacy management sector.
- CyberGRX and Deloitte announced a partnership to provide third-party risk management services, aiming to combine Deloitte's consulting expertise with CyberGRX's third-party risk management expertise.
Competitive Summary Table
| Capability | Leading Players | Remarks |
|---|
| Biometric Self-Boarding |
IDEMIA, Gemalto |
Biometric boarding solutions from IDEMIA have improved the flow of passengers at many airports and reduced waiting times. Moreover, Gemalto’s technology has been recognized for its high level of accuracy and the ease with which it has been integrated into existing systems. |
| AI-Powered Ops Mgmt |
IBM, Palantir |
The risk of the supplier is analyzed in advance by the help of the artificial intelligence of IBM's Watson, and the company can proactively manage the risk. Palantir's platform provides excellent data integration capabilities, enabling real-time insight into supplier performance and compliance. |
| Border Control |
Thales, SITA |
Thales provides border control solutions which make use of biometric data for identity verification, and which have been successfully installed in several countries. SITA’s border control systems are well known for their effectiveness, and have been adopted by several international airports. |
| Sustainability |
SAP, Envirosuite |
Case studies have shown that by implementing SAP’s sustainable solutions, companies can make a significant contribution to reducing their carbon footprint. Suppliers can monitor their own compliance with regulations in real time using the Envirosuite tool. |
| Passenger Experience |
Amadeus, Travelport |
Amadeus’s efforts to enhance the experience of passengers through a series of personal travel solutions have been proven by the success of its implementation with a number of different carriers. Travelport’s platform integrates a number of different services to improve the booking process and raise the satisfaction of travellers. |
Conclusion: Navigating Vendor Risk Management Dynamics
VRM in 2023 is characterized by a high degree of competition and a high degree of fragmentation. Both established and new players compete for dominance. Region-wise, there is a strong emphasis on compliance and risk management, especially in North America and Europe, where regulatory pressures are growing. Strategically, vendors are focusing on enhancing risk management processes by deploying new capabilities such as artificial intelligence and automation, and they are also prioritizing flexibility and agility to meet evolving customer requirements. This will enable them to offer a full and adaptable solution. As the market matures, the ability to integrate these capabilities will become a critical success factor. These are the key trends that organizations must monitor closely to ensure that their strategies are aligned with the market and that they are able to take advantage of new opportunities.
