Global Vendor Risk Management Market Size, Share & Industry Trends Analysis Report By End-use, By Deployment (Cloud and On-premises), By Organization Size, By Solution, By Regional Outlook and Forecast, 2022 - 2028
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Market Report Description
The Global Vendor Risk Management Market size is expected to reach $17.5 Billion by 2028, rising at a market growth of 14.8% CAGR during the forecast period.
The Global Vendor Risk Management Market size is expected to reach $17.5 billion by 2028, rising at a market growth of 14.8% CAGR during the forecast period.
To reach their business goals, businesses rely heavily on a huge number of third-party vendors. Collaboration with several vendors can be difficult for businesses, and it can also introduce a variety of hazards that can jeopardize corporate processes or objectives. Enterprises must reduce and overcome the risks connected with numerous vendors located in various geographic regions when working with these vendors. Vendor risks can have a substantial influence on a company's bottom line.
Information Technology (IT) risks, credit risks, operational risks, compliance risks, and reputational risks are all hazards connected with third-party contractors. To fulfill their corporate goals and stay competitive, it is becoming increasingly critical for businesses to recognize and mitigate these risks. Vendor risk management software and services provide a practical way to comprehend and manage the complicated third-party vendor environment.
Managing several vendors is a time-consuming effort for any firm, but comprehensive risk assessment with vendor risk management systems makes the task of assessing risks connected with various vendors much easier. To analyze the risks associated with supplier dependence, a large section of the international market still uses manual processes. Many businesses are still unaware of the necessity for vendor risk management software to track vendor performance.
COVID-19 Impact Analysis
The COVID-19 pandemic is expected to have a significant impact on organizations, limiting innovation, reducing profitability, and depleting cash flow and financial reserves. Due to this unanticipated spread, the IT and software development industries have also been hit hard. The pandemic's outburst disrupted a large chunk of global supply networks, which had an impact on the economy. Due to financial losses, disrupted company operations, and a lack of visibility, organizations in severely impacted industries such as manufacturing, BFSI, retail, and government demonstrated lower adoption of the solutions.
Market Growth Factors
Growing Necessity of Efficient Management of Complex Vendor Ecosystems
Organizations devote a significant amount of time and effort to selecting vendors who supply products and services that meet their business needs. Vendor risk management software streamlines the process of detecting and assessing critical characteristics of vendor performance, such as product or service delivery, timeliness, and product quality. When a company relies on several vendors, vendor risk management software can help with figuring out and recognizing the major difficulties with sourcing products and services from third parties.
Vendor Risk Management Solutions Providers Raise Efficiency
Many products or services, such as accounting, human resources, appraisal management, internal audit, sales and marketing, loan review, asset and wealth management, procurement, or loan servicing, are so specialized that outsourcing to a dedicated company will provide better performance and lower risk than performing the function in-house. And it's typically impractical for smaller businesses to execute all functions. Since they neither have the human resources, the financial resources, time, or expertise.
Market Restraining Factors
Reliance on Non-Formal and Manual Procedures by Organizations
Manual processes are still used by a large section of the international market to evaluate and quantify the risks associated with vendor dependency. This is due to factors like lack of awareness about the benefits of having a 3rd party vendor risk management solutions providers, not being adaptable in the short run, etc. Many businesses have yet to recognize the importance of vendor risk management tools for assessing vendor performance.
Based on solutions, the vendor risk management market is segmented into Vendor Information Management, Contract Management, Financial Control, Compliance Management, Audit Management, and Quality Assurance Management. The financial control segment acquired the highest revenue share in the vendor risk management market in 2021. Vendor risk management solutions providing companies are experiencing great demand for financial control solutions. The systems, rules, and methods through which an organization monitors and regulates the direction, allocation, and use of its financial resources are known as financial controls.
Organization Size Outlook
Based on organization size, the vendor risk management market is bifurcated small & medium enterprises (SMEs) and Large Enterprises. The small and medium enterprises segment procured a significant revenue share in the vendor risk management market in 2021. Small and medium enterprises are those businesses which employ less than a thousand employees. Legal difficulties, prior performance, and creditworthiness are some of the most common VRM concerns for small businesses.
Deployment Type Outlook
Based on deployment type, the vendor risk management market is divided into On-premises and Cloud. The cloud segment acquired the highest revenue share in the vendor risk management market in 2021. Because of its cost-effectiveness and benefits, the cloud segment has a considerable proportion of the market. The cloud deployment model is highly scalable, versatile, and cost-effective, which is a driving force behind market expansion.
Based on end-use, the vendor risk management market is segmented into BFSI, Telecom and IT, Consumer Goods and Retail, Healthcare and Life Sciences, Manufacturing, Energy and Utilities, Government, and Others (Education and Media & Entertainment). The telecom and IT segment procured a significant revenue share in the vendor risk management market in 2021. As data network controllers, telecom companies have long been at the forefront of cybersecurity and data breach prevention.
|Market size value in 2021||USD 6.8 Billion|
|Market size forecast in 2028||USD 17.5 Billion|
|Historical Period||2018 to 2020|
|Forecast Period||2022 to 2028|
|Revenue Growth Rate||CAGR of 14.8% from 2022 to 2028|
|Number of Pages||313|
|Number of Tables||503|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Solution, Deployment, Organization Size, End-use, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Region-wise, the vendor risk management market is analyzed across North America, Europe, APAC, and LAMEA. North America acquired the highest revenue share in the highest revenue share in the vendor risk management market in 2021. Because of the more advanced technologies in AI, machine learning, cloud, IoT, increased attention on data security, and growing investment, the North American area retains a substantial portion of the market. The highly developed telecommunication and banking sector in the region is the major source of vendor risk management solutions demand in the region.
Free Valuable Insights: Global Vendor Risk Management Market size to reach USD 17.5 Billion by 2028
KBV Cardinal Matrix - Vendor Risk Management Market Competition Analysis
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Genpact Limited and SAI Global Pty Limited are the forerunners in the Vendor Risk Management Market. Companies such as NAVEX Global, Inc., ProcessUnity, Inc., MetricStream, Inc. are some of the key innovators in Vendor Risk Management Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include BitSight Technologies, Inc., RSA Security LLC (Symphony Technology Group), Genpact Limited, NAVEX Global, Inc. (Lockpath), MetricStream, Inc., Rapid Ratings International, Inc., Quantivate, Inc., SAI Global Pty Limited (Intertek Group plc), ProcessUnity, Inc., Optiv Security, Inc.
Strategies Deployed in Super-resolution Microscopes Market
» Partnerships, Collaborations and Agreements:
- Nov-2021: MetricStream formed a partnership with CUBE, a global RegTech boasting the world’s most extensive source of classified, meaningful regulatory intelligence. The partnership enabled customers to use CUBE’s automated regulatory intelligence with the MetricStream Platform, permitting businesses to make rich analyses and derive deep knowledge for driving business decisions. CUBE makes certain that across the regulatory change management lifecycle, only relevant data will be shown to the users for further action, including impact analysis, compliance mitigation, or downstream policy/procedure updates.
- Sep-2021: RSA Security teamed up with EY, a multinational professional services network with headquarters in London, England. Under the collaboration, both companies aimed to quicken their operational and IT risk transformation through the integrated capabilities of Ernst & Young LLP (EY US) and Archer, an RSA business and a key player in integrated risk management solutions.
- May-2021: BitSight formed a partnership with ServiceNow, an American software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations. Under the partnership, BitSight got access to ServiceNow’s Vendor Risk Management capabilities to offer vendor risk leaders a risk reduction solution that solidifies the extended enterprise. Supported by ServiceNow’s workflow efficiency technology, this new BitSight integration provides customers more visibility into the cybersecurity threats of their third parties and their data is exposed to. The improved visibility and control throughout the entire vendor ecosystem enabled vendor risk to better detect the most urgent security exposures, and work with their vendors to quickly remediate the risks.
- Apr-2021: ProcessUnity teamed up with HCL Technologies, an Indian multinational information technology services and consulting company. Under the collaboration, HCL Technologies leveraged the ProcessUnity Vendor Risk Management platform to power its third-party risk managed services program for its global clients. The integration of HCL’s 3PAS(3rd Party Assessment and Management Services) and ProcessUnity VRM created a mature and holistic service to assist organizations in proactively detecting, managing, and mitigating risks while deploying proper governance, risk, and compliance processes.
- Oct-2020: ProcessUnity formed a partnership with RiskRecon, a company that provides insights into the security risk performance across a customer's entire ecosystem. Under the partnership, ProcessUnity integrated RiskRecon’s Third-Party Ratings Data within ProcessUnity’s Vendor Risk Management platform. The integration helped their customers obtain additional objectivity in their due diligence procedure and improve their continuous tracking capabilities to detect, monitor, and mitigate third-party risks with more efficacy - not only at the time of the assessment but throughout the entire vendor relationship.
- Aug-2020: Genpact formed a partnership with AppZen, a leading artificial intelligence (AI) software for modern finance teams. Under the partnership, both companies aimed to revolutionize travel and expense (T&E) audit processes, improving corporate and regulatory compliance.
- Feb-2020: BitSight entered into a partnership with Vendorpedia, an effective and cost-efficient vendor risk management platform. Under the partnership, both companies expanded their existing integrations and provided new capabilities, as well as offered best-in-class functionality that addressed the growing needs of third-party risk management.
» Product Launches and Product Expansions:
- May-2022: Quantivate released updates to its Governance, Risk, and Compliance Insights engine. The update made it simple for financial institutions to visually communicate GRC data and produce actionable reports. The solution put a user-friendly tool at their fingertips, enabling users to visualize GRC data quickly, drill down into key metrics, and make strategic decisions.
- Apr-2022: NAVEX expanded its NAVEX One Platform product line by including NAVEX ESG in it. The integration of NAVEX ESG into the NAVEX One platform enabled organizations to have holistic GRC management and reporting programs that include environmental and social factors.
- Feb-2022: NAVEX launched the NAVEX Integration Cloud. The product gives information security, third-party risk managers, and IT professionals the capabilities to conveniently and optimally integrate a broad range of business data and automate risk management workflows. The NAVEX Integration Cloud eases the integration of a broad range of data sources through a single hub with pre-established, configurable connectors into NAVEX IRM.
- Jan-2022: MetricStream released ConnectedGRC solutions, a solution that solves the most crucial business challenges related to risk, compliance, audit, cyber risks, and environmental, social, and governance (ESG) of the present. ConnectedGRC is powered by MetricStream Intelligence which consists of embedded best practices, deep domain capabilities, artificial intelligence (AI) powered real-time insights, and risk quantification capabilities. ConnectedGRC provides three distinct product lines with a fast time to value.
- Dec-2021: MetricStream released new native capabilities for Advanced Cyber Risk Quantification and Simulation to calculate cyber risk in monetary terms, along with intuitive risk assessments, expanded compliance risk management capabilities, and enhanced visibility into third and fourth-party risks. The new Cyber Risk quantification is founded on MetricStream Intelligence, a modern analytical and AI engine that allows multiple scoring models and data science tools.
- May-2021: ProcessUnity released ProcessUnity Vendor ESG Intelligence (VEI), a platform powered by EcoVadis. This product was an addition to the ProcessUnity Vendor Intelligence Suite and combines EcoVadis’ ratings and scorecard content into the ProcessUnity Vendor Risk Management platform to deliver actionable insights on environmental, social, and ethical risks during initial vendor onboarding and post-contract due diligence.
- Apr-2021: MetricStream released Arno software, a platform that includes various features and innovations added to its platform and products. MetricStream also improved the MetricStream Platform and added multiple new features to Enterprise and Operational Risk Management, IT and Cyber Risk Management, Internal Audit Management, Policy and Compliance Management, and Third-Party Risk Management products. This launch set a new benchmark for governance, risk, and compliance as well as integrated risk management, further allowing organizations to utilize risk as a strategic advantage.
- Mar-2021: ProcessUnity released ProcessUnity VRM Essential Edition, a new version of its flagship vendor risk management software. The product was aimed at assisting smaller organizations in tracking and remedying risks posed by third-party service providers. The offering integrated ProcessUnity’s award-winning automation tools with a holistic baseline program that automates vendor onboarding, due diligence, and ongoing monitoring.
- Jul-2020: ProcessUnity released ProcessUnity Vendor Financial Intelligence (VFI), a system powered by RapidRatings, the leading provider of financial health assessments and analytics. RapidRatings’ Financial Health Ratings were smoothly and automatically integrated into ProcessUnity’s Vendor Risk Management platform for improved vendor due diligence, vendor assessments, and ongoing monitoring.
- Jul-2020: RSA Security released Vendor Portal for Archer Third-Party Risk Management, a vendor portal that simplifies collaboration between business stakeholders, risk managers, and external vendors. The Vendor Portal offers a user-friendly interface for vendors to simply and securely complete assessments, upload documentation, reply to issues, and analyze performance, while reducing the management burden for RSA Archer administrators.
- Jun-2020: NAVEX Global released NAVEX One, an integrated SaaS platform to assist businesses more optimally and effectively handle risk and compliance programs. NAVEX One offers customers an intensive set of applications combined into a single technology platform to support businesses effectively and holistically handling their programs and stay cognizant of developing risks.
- Apr-2020: NAVEX Global launched COI Disclosures, a software tool that provides a simplified solution for organizations to collect, monitor, and analyze employee-based conflict of interest risk. COI Disclosures automates and simplifies the steps necessary to detect and record potential conflicts of interest, including board participation, gifts and entertainment, investments, and outside employment.
- Feb-2020: ProcessUnity released Best Practices Configuration, a new pre-built configuration of its award-winning Vendor Risk Management solution. This product is a pre-configured Third-Party Risk Management program with turn-key workflows, assessments, calculations, risk analysis, and reporting, enabling small to midsize organizations to successfully release and sustain a third-party risk program from day one.
- Jan-2020: SAI Global released the SAI360, a risk platform. This is a complete platform that provides innovation crucial to assisting compliance and risk teams as they put their trust and morals at the center of the corporate culture. The new launch kept improving reporting workflows with consolidated business analytics increasing risk and compliance and enterprise data visibility.
» Acquisition, Joint Venture and Merger:
- Aug-2019: Navex Global acquired Lockpath, a company that offers enterprise governance, risk management, compliance, and information security software applications. The acquisition helped Navex pick up a wide line of business, which enabled it to assist customers to evaluate and mitigate risk throughout the organization. This added capability included everything from operations risk, IT and data privacy risk, and supplier risk.
- Apr-2019: SAI Global acquired BWise from Nasdaq. The acquisition enabled SAI Global to form one of the world's largest risk management and ethics learning businesses. The integration of BWise's award-winning risk management, internal audit, and regulatory compliance platform with SAI Global's industry-leading SAI360 risk and compliance solution created the most holistic integrated approach to risk management in the marketplace.
- Jan-2019: Genpact acquired riskCanvas Holdings, a company that helps financial institutions detect, investigate, and prevent a variety of financial crime threats. Genpact acquired riskCanvas from Booz Allen Hamilton Holding Corporation. The acquired entity consisted of a financial crime compliance practice, which provides both consulting services and, riskCanvas, an end-to-end extensive software suite of anti-money laundering (AML) solutions.
Scope of the Study
Market Segments Covered in the Report:
- Telecom & IT
- Retail & Consumer Goods
- Energy & Utilities
By Organization Size
- Large Enterprises
- Small & Medium Enterprises
- Financial Control
- Compliance Management
- Contract Management
- Vendor Information Management
- Quality Assurance Management
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- BitSight Technologies, Inc.
- RSA Security LLC (Symphony Technology Group)
- Genpact Limited
- NAVEX Global, Inc. (Lockpath)
- MetricStream, Inc.
- Rapid Ratings International, Inc.
- Quantivate, Inc.
- SAI Global Pty Limited (Intertek Group plc)
- ProcessUnity, Inc.
- Optiv Security, Inc.
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