(MENAFN- Straits Research)
Introduction
The global vendor risk management market was valued at USD 7.26 billion in 2021 and is projected to reach USD 25.96 billion by 2030, registering a CAGR of 15.21% f rom 2022 to 2030.
The market for vendor risk management is a method for regulating, identifying, monitoring, and assessing a variety of potential risks. These included operational risk, compliance risk, strategic risk, and several information security risks. All of these dangers can result from enterprises' partnerships with third parties.
Market Dynamics
Need for the efficient management of complex vendor ecosystems
Organizations invest a substantial amount of time and energy evaluating the vendors who provide products and services that meet their business needs. Vendor risk management systems decrease the time and effort required to determine the essential factors of vendor performance and to score suppliers based on their product or service delivery, timeliness, and quality. When a business is reliant on several vendors, vendor risk management solutions aid in determining and recognizing the important issues associated with sourcing goods and services from third-party vendors. Managing various vendors is a laborious chore for any organization, but a vendor risk management solution simplifies the enterprise's evaluation of the risks associated with different vendors by providing a comprehensive risk assessment.
Dependence on non-formal and manual processes by many organizations
A significant section of the worldwide market continues to rely on manual methods to evaluate and estimate vendor dependency risks. Many organizations have not yet recognized the need for vendor risk management systems to evaluate their vendors' performance. These firms are hesitant to implement software for vendor risk management in their systems. Numerous firms rely on manual methods to detect hazards and are oblivious to the significance of vendor risk management solutions and services in mitigating vendor risks.
Streamline the vendor risk assessment process
To ensure the on-time delivery of products and services to consumers, large enterprises frequently rely on a multitude of suppliers for business continuity and supply chain process support. To handle such crucial difficulties, it is necessary to assess the numerous challenges and dangers posed by suppliers. Solutions for vendor risk management prioritize each risk and streamline the risk-resolution processes inside an organization. In addition, these technologies simplify the businesses' efforts to minimize risks while analyzing and selecting a vendor for particular activities.
Regional analysis of the global vendor risk management market
The market is split by region into North America, Europe, Asia-Pacific, and LAMEA.
North America is predicted to dominate the global vendor risk management market.
Advanced technical breakthroughs in AI, machine learning, cloud, and IoT, growth of end-user sectors such as BFSI, healthcare, and others, increasing investments, and a growing emphasis on data security are driving the vendor risk management market in the area.
In January 2019, a third-party vendor misconfigured a server where Ascension kept digital versions of paper financial documents, causing a data leak at numerous US banks and financial firms. One could access a database with 24 million credit records containing client data.
Rapid Ratings International Inc., a provider of vendor risk management solutions, rated 284 U.S. industrial enterprises that failed or filed for bankruptcy between 2014 and 2018. Poor financial health suppliers have a higher possibility of poor performance and insolvency. 95% of the 37 U.S. industrial enterprises that failed in 2018 had a "High Risk" or "Very High Risk" FHR.
Walmart and Amazon, among others, have global supply chains in the region. Thus, vendor risk management players can infiltrate the region by using AI and machine learning.
Key Highlights
The global vendor risk management market was valued at USD 7.26 billion in 2021 and is projected to reach USD 25.96 billion by 2030, registering a CAGR of 15.21% from 2022 to 2030.
BFSI is expected to witness significant growth during the forecasted period
North America held the largest share of the market in 2021 and is expected to do the same during the forecasted period.
Competitive Players
IBM Corporation (U.S.)
MetricStream (U.S.)
Lockpath Inc. (U.S.)
Logic Manager (U.S.)
Rsam (U.S.)
BitSight Technologies (U.S.)
RSA (U.S.)
Genpact (U.S.)
Resolver (Canada)
SAI Global (Australia)
Optiv (U.S.)
Quantivate (U.S.)
BWise Internal Control (The Netherlands)
RapidRatings (U.S.)
ProcessUnity (U.S.)
VendorInsight (U.S.)
Recent Developments
Recent Developments
In August 2019 , IBM announced the debut of a new blockchain-based supply chain risk mitigation solution. The blockchain network enables organizations to validate and onboard their vendors more rapidly while preserving a secure audit trail of buyer-supplier interactions across the supply chain.
In July 2017 , Keylight 4.7 is an improved version of LockPath's Keylight platform package . The revised version included the Health and Safety Manager (HSM) program as well as improved reporting and calculating capabilities.
In February 2020 , RSA, a provider of Business-Driven Security solutions that assist enterprises in managing digital risk, announced that it would offer RSA Archer SaaS (software as a service) to customers that wish to use the RSA Archer Suite in the cloud. The RSA Archer Suite enables enterprises of any risk management maturity level to manage risk more effectively and efficiently. In May 2017 , RSA, a division of Dell Technologies, announced several enhancements to its RSA SecurID Access product . The upgrade added a cloud-based authentication-as-a-service option, facilitating secure access to both on-premises and cloud-based resources and systems from anywhere, at any time, for any user.
Segmentation
By Component
Solutions
Vendor Information Management
Contract Management
Financial Control
Compliance Management
Audit Management
Quality Assurance Management
Services
Professional Services
Consulting
Support and Maintenance
Deployment and Integration
Managed Services
By Deployment Type
On-premises
Cloud
By Organization Size
SMEs
Large Enterprises
Market By Vertical
BFSI
Telecom and IT
Consumer Goods and Retail
Healthcare and Life Sciences
Manufacturing
Energy and Utilities
Government
Others (Education and Media & Entertainment)
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