Tag: risk management

IT risk management

Increased Operational Efficiency Across Security for a Tech Company by Leveraging SpendEdge’s IT Risk Management Services

The Business Problem

A leading tech company in the United States found themselves compromised by cybercriminals entering through a third party in the supply chain despite having a robust cybersecurity control system.  The company lacked visibility into the security practices implemented by third parties and continued sharing sensitive information with them. This restricted them to

  • Shift their security program to Cloud and DevOps teams.
  • Decrease the entry points of malicious actors and made them more vulnerable to DDoS attacks.


vendor risk

A Comprehensive Guide to Manage Vendor Risk

SpendEdge recognizes that organizations lack the capacity, investment support, and skills to effectively manage the diverse number of vendors and suppliers found in today’s large corporations. This results in:

  • The potential for a large (or public) cyber security breach, accredited the cyber practice failings of a vendor.
  • The lost value within commercial relationships.
  • Increased likelihood of supplier service failure or non-compliance.
  • Failure to abide by contractual obligations.


third party risk management

How to Gain Excellence in Third Party Risk Management Amidst Changing Regulatory Environment?

With the new regulatory thrust posing substantial challenges for financial institutions, companies of today have started emphasizing on improving their third party risk management capabilities. To know more about the best practices that your competitors are following, download the full article.

Why is Third Party Risk Management Important?

All major financial regulators in the United States such as Federal Reserve, Federals Open Market Committee, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision have started taking a keen interest in guarding financial consumers. The recent Economic Growth, Regulatory Relief, and Consumer Protection Act passed by the US government has increased regulatory scrutiny for financial institutions with more than $250 million in assets. This increase in the federal oversight apart from the Dodd-Frank Wall Street Reform has left no scope for financial firms to outsource the responsibility of consumer protection to their third parties.

Moreover, the Consumer Financial Protection Bureau, which was created for providing financial security to consumers, has registered thousands of complaints covering different issues. It has fined some of the well-reputed firms to settle charges of deceptive marketing practices on behalf of third-party suppliers.

At SpendEdge, we understand the risks that third parties bring along with them. And to help firms address those risks, we have answered questions such as “why is third party risk management important?” and “how to mitigate third party risk?”. We have also listed some of the best practices in third party risk management in our new free resource, which is now available for free download.

Looking to gain more information about best practices in third party risk management? Request a free demo and access our SpendEdge Insights platform for free!

Best Practices in Third Party Risk Management

SpendEdge has analyzed some of the best practices to help financial institutions improve third party risk management and meet regulatory compliance. They include:

  • Detailed insights into third parties: A third party risk assessment is the first step towards managing third party risk. Companies need to collate a list of third parties engaging with the institution. Enterprise-wide surveys and a third party risk management framework can prove to be of great help in gaining such insights.
  • A checklist of customer risks posed by third parties: The third party risk management process cannot be effective until a firm understands the risks run by third parties. Adopting a master risk register that complies with the CFPB can improve third party risk management capabilities substantially.
  • Segregation of risks: Firms can categorize supplier relationships based on the level of risk posed to customers by implementing third party risk management framework. Even a simple process of “high”, “medium” and “low” risk categories can prove significant to them.
  • To know more about best practices in third party risk management, request more information. 

What’s in it for you?

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  • Gain vital insights to build a single repository for all third parties.
  • Understand the relevance of due diligence tests.
  • Determine the impact of changing regulatory norms across business units.
  • Analyze the role of risk-based segmentation for firms.
  • Scrutinize third parties to ensure compliance with regulations that govern their activities.


Not complying with the regulatory norms can result in heavy penalties for companies. Request a free proposal to gain a comprehensive overview of our solutions portfolio for third party risk management.

Why SpendEdge:

SpendEdge delivers robust, real-time procurement market intelligence solutions to help sourcing and procurement professionals to improve third party risk management capabilities. Our innovative procurement solutions help enterprises to transform the structural capabilities of businesses and improve execution efficiency. Our state-of-the-art third party risk management solutions also help enterprises to transform structural capabilities, improve execution efficiency, and achieve better cost savings. We provide businesses with actionable insights and techniques to improve their procurement capabilities.

Want to gain detailed insights into third party risk management best practices? Contact us below.

supply chain risk management

CPG Company Utilizes SpendEdge’s Supply Chain Risk Management Solution to Achieve Cost Savings of Over 11%

The Business Problem

The client is a well-renowned company in the consumer packaged goods (CPG) industry and produces a wide range of products in the beauty, grooming, and household care units. The client’s business units were spread across 50+ countries across the globe. However, they were facing challenges in price and quality benchmarking for their products and machines. The need to identify suppliers who were critical for their business processes and associated risks compelled them to engage with SpendEdge. The key aspects they were looking to address through this engagement were:

Risks Associated with OEM Supplier and DFC Rolls: The double face corrugated (DFC) rolls used during shipment to prevent boxes from getting damaged lacked superior quality. In addition, machine cutting consumables were directly purchased from the original equipment manufacturer without any price benchmarking; thus, increasing the possibility of supply chain risk.

Cost of Reusable Gloves: The single-use gloves used by the client were becoming cost prohibitive and they were facing challenges identifying new suppliers who were within their budget limit.

Improving your supplier identification process can help you achieve substantial growth. To know more about how we can help your business with our supply chain risk management solution, request a free proposal below!

Solutions Offered and Client Journey

The experts at SpendEdge carried out a comprehensive risk assessment and identified suppliers who were critical for the company. In addition, they identified risks associated with key stakeholders and those associated with supply capacity, fluctuation in supply capacity, and their subsequent impact on prices.

In a span of three weeks, the experts at SpendEdge offered a solution to improve the client’s supply chain risk management capabilities. They also recommended utilizing an existing and pre-approved chemical supplier to provide/produce nitrile reusable gloves. The insights offered helped them to identify appropriate suppliers and evaluate their performance proactively. With our help, the CPG company was able to secure alternate suppliers and reduce the likelihood of supply chain disruptions. 

Wondering how you can proactively identify supply chain risk and devise strategies to manage them?

Request a free demo and know how our experts help you improve supply chain risk management capabilities.

Key Findings and Outcome

SpendEdge’s supply chain risk management service enabled the client to identify new suppliers and assess their delivery capabilities. The initiation of quality testing and price benchmarking helped create competition among the existing suppliers and provided opportunities for efficient contract management. The supply chain risk management solution helped the client to:

  • Achieve cost savings of more than $9,000, while exploring the usage of reusable gloves.
  • Reduce dependence on OEMs and achieve cost savings of more than 11%.
  • Shortlist suppliers with low financial risk and identify cost-saving opportunities.
  • To know more about this engagement, get more info.

Types of Supply Chain Risk

Supply chain risk management

Why is Supply Chain Risk Management Important?

Supply chain risk management is an essential part of any strategy and plays a crucial role in determining the financial health of any company. It helps determine the success of your business by helping you to proactively strategize plans for business risks. Supply chain risk management is imperative for companies looking to ensure the smooth functioning of their business units. To know about supply chain risk management best practices, click here.

Want to know more about supply chain risk management best practices for your industry? Get in touch with our experts today!

Contract logistics

Top 4 Advantages of Vendor Risk Management Solutions: A Comprehensive Guide to Mitigate Business Risks

Rapid globalization has created the need to outsource business processes to an increasing number of partners and vendors. This has fueled the growth of the third-party ecosystem, which, in turn, has increased vendor-related risks. It has also made vendor risk management imperative for companies across the globe.

For most companies, meeting regulatory requirements is the prime reason why companies need vendor risk management. Understanding the range of risks and managing them is crucial both for vendors and the company’s customers. For instance, if vendors associate with customers directly, then vendor risk management becomes a formal way to evaluate, track, and measure third-party risks. Organizations having a huge dependency on vendors usually lack sufficient visibility into their vendor networks and expose themselves to high risks. Managing such risks, therefore, becomes a pre-requisite for businesses for sustainable growth.

At SpendEdge, we understand the impact that implementing a vendor risk management framework can have on an organization. Therefore, in this blog, our team of experts has highlighted some key benefits that companies should look to achieve while availing vendor risk management services.

Interested in identifying risks associated with vendors? Get in touch with our experts and know how they can help you analyze third-party risks.

Advantages of vendor risk management solutions

Minimizes risks

With an effective vendor risk management program in place, companies can perform with due diligence and rate risks associated with vendors. They can also track and measure problems and take actions to rectify them before they harm the bottom line of the organization. This abstains companies from losing money or having a disruption of supply.

Reduces costs

A temporary vendor risk management process is usually costly and ineffective, especially if you are considering costs pertaining to data loss, remediation work, and compliance fines. Centralizing and standardizing vendor risk management offers long term benefits for companies. It reduces the cost of evaluating vendors and improves operational efficiency. 

Consolidates vendors

Relying on vendors comes with its own set of risks. These risks can be strategic, operational, or reputational, depending upon the business situation. A consolidated vendor risk management process can help companies to overcome such risks by improving contract terms, reducing costs from audits, and enhancing the productivity of vendors.

Wondering how to mitigate risks? Request a free proposal and access our portfolio of vendor risk management solutions.

Maintains compliance

An effective vendor risk management ensures that all the industry frameworks and data privacy regulations are met by vendors. Moreover, it provides adequate controls to companies to protect data being processed outside their perimeter. This protects companies from fines and penalties.

Request a free demo below and know how our experts can help you enhance vendor management for your organization.

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Why IT Risk Management Services Are Inevitable Today?

The recent economic downturns have had a major effect on how companies run today. Companies that used to rely on traditional forecasts and projections now refrain from making business decisions that are set in stone. They now have a renewed focus: IT risk management.

As most companies own or manage a business that makes use of Information Technology, it has become critical for them to identify risks related to IT systems and data and reduce or manage them. Moreover, companies need to ensure that they have a dependable IT risk management framework that can help them in the event of an IT crisis.

Are you sure that your information network will not fall victim to any IT risks? If not, get in touch with our experts and know why your organization needs IT risk management in place.

What is the purpose of an IT risk assessment and why companies need it?

IT risks usually involve hardware and software failures, human errors, spam, scams, and phishing, as well as criminal threats such as hackers, fraud, passwords theft or security breaches. These risks can easily be managed by completing an IT risk assessment methodology. Having an IT risk management framework can help businesses recover from such IT incidents and achieve organizational goals. Let’s now understand why companies need an effective IT risk management process:

Inbound and outbound Logistics

The use of IT in areas such as vendor-managed inventory systems to communicate with suppliers creates the need for IT risk management in inbound logistics. It helps companies to monitor IT effectiveness in managing supplier relationships and analyzing the risks associated with them. Similarly, in outbound logistics, organizations focus on reducing the costs of storage and transportation. Companies need to ensure the performance and protection of sensitive data associated with it.  With an IT risk management framework, companies can address these risks and gain the information necessary for decision-making .[/vc_column_text]

Is your organization resistant to different IT risks?

If not, request a free proposal and know how our IT risk management methods can assist you.

Marketing and sales

Usually, the marketing and sales department in any organization is associated with the process of persuading customers to purchase products or services and to earn profits. They employ various emerging technologies such as big data and mobile marketing to gauge the potential and existing customers. These technologies enhance the risks of security breaches and hackers. Therefore, companies implementing such technologies need an IT risk management to reduce the impact of potential threats to the company’s information system.


Companies often provide different services to customers to maintain the value of their products and services after the sale. These services involve providing customer support, warranty service, addressing customer queries, and many more. The aim of companies behind providing such services is to improve the customer experience and escalate future sales. Therefore, many companies are offering online chat services and mobile apps with access to customer accounts to increase customer satisfaction.  Although such services have a positive impact on the customer experience, they also make the company’s network and databases vulnerable to various security threats and compels companies to opt effective IT risk management methods.

Want to have a successful IT risk management strategy that can help to tackle various risks? Request a free demo and know how our experts can enhance IT risk management for your organization.

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Top 4 Benefits of an Effective Portfolio Analysis for Oil and Gas Companies

Balancing production, investments, and returns in today’s lower-for-longer oil price environment are critical challenges for oil and gas companies. Top oil and gas companies are continuing to strive for the right balance of geographies and resource types. An important question that arises is what portfolio of resources can deliver the optimum results across a range of price scenarios?

In an era of higher shareholder expectations and uncertain oil prices, an effective business portfolio analysis is likely to be the priority for oil and gas companies. However, with the availability of innumerable narratives and tools in the marketplace, this is easier said than done. Therefore, oil and gas companies need to do a better business portfolio analysis. With the help of a comprehensive portfolio analysis tool, oil and gas companies can not only optimize their portfolio but also be in sync with the way markets evaluate portfolios in this period of uncertainty.

At SpendEdge, we understand the impact that an effective portfolio analysis can have on your business. And to help companies thrive in the competitive marketplace, our team of experts has highlighted four significant benefits of portfolio analysis that can help in maximizing ROI and deal with the competitive pressure.



4 Ts of a Risk Management Strategy

A risk management strategy is designed to help businesses develop a structured and coherent approach to identify, assess, and manage risks. It can be developed and implemented by projects and organizations irrespective of their scale of operations. Considering that risk is a prevalent element in a supply chain, it is imperative for modern organizations to chart out appropriate strategies to resist or mitigate such occurrences. to Prudent supply chain professionals must be equipped with the right risk management strategy in order to avoid supply chain complexities. The skill required to build an ideal risk management strategy is not developed overnight: it is gradually learned through exposure to different circumstances and issues. In this blog, SpendEdge’s industry experts have curated ‘4Ts’ of choosing an effective risk management strategy for business:

Treat the risk

Several complacencies and negative issue related to the supply chain can leave a company more exposed to threats. Though an effective risk management strategy can reduce such risks to an acceptable level by building control mechanisms into relationships or operational activities. However, it is critical that the risk management strategy adopted is proportionate to the risk and are cost effective. Having a service level agreement is a great mechanism to ensure that the supplier’s performance is kept in check. Furthermore, this can also help identify areas that require corrective measures.request proposal

Transfer the risk

All the risk that a company may encounter cannot always be mitigated completely. But is possible to transfer some risk to another body or organization through insurance, contractual arrangements, outsourcing or partnerships. The catch here is that some risks such as the risk to reputation cannot be transferred.

Tolerate the risk

As mentioned earlier, risks cannot be fully mitigated. Eventually, all risks have to be accepted as they form part of, or are inherent in, the activity under scrutiny. In the case of such instances, it is vital for organizations to tread carefully. There are some risks which for which the management has no control over and some for which any management actions would be prohibitive in terms of resources. While formulating a risk management strategy, these risks must be identified, clearly understood and acknowledged, and a contingency plan established for dealing with the effects that will arise if the risk is realized.

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Terminate the risk

In some rare cases, it is possible that a particular risk can neither be controlled nor be transferred to another entity. In this case, the only way out is to eliminate the risk by putting an end to all or part of a particular activity. The management must be highly cautious while formulating their risk management strategy here. Though an identified risk may be too much to absorb, companies must not stifle innovation.

Gain more insights on building an ideal risk management strategy for your business

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