Blog TPRM
What do the barrier reef and vendor risk have in common? Here’s what healthcare TPRM can learn from this year’s coral cover numbers.
Read Vendor Risk Management (VRM)3 Minute Read
The Ultimate TPRM & Cyber Risk Glossary
When in doubt, use an acronym.
Whether you’re a seasoned healthcare CISO or you’re new to the industry and convinced people are just making up acronyms—this glossary has you covered. From standard industry frameworks to CORL-specific terms, it’s your Rosetta Stone for healthcare TPRM, cyber risk, and compliance.
Understanding Vendor Risk Management (VRM)
At CORL, vendor risk management is at the heart of what we do. But what does it really encompass?
Vendor risk management, or VRM, is the process of identifying, evaluating, and mitigating potential risks imposed by an organization’s third-party business associates. In healthcare, VRM is especially important to protect sensitive health information, as well as to combat the potential fines and penalties that can come as a result of a data breach.
A thorough VRM program typically involves the following components:
- Vendor Identification: Identifying any third-party vendors that are integral to business operations
- Risk Assessment: Evaluating each vendor’s potential to expose the organization to risks
- Due Diligence: Conducting in-depth analysis of vendors’ security practices and regulatory compliance
- Contract Management: Ensuring vendor agreements include clauses that outline expectations for managing risk and meeting compliance requirements
- Ongoing Monitoring: Continuously assessing vendors’ performance and risk levels throughout the lifecycle of the relationship
- Risk Mitigation: Implementing strategies to reduce or eliminate identified risks, including backup vendors or response plans for potential failures
Today, technology has become an increasingly integral part of VRM, as solutions have become available to streamline and automate the risk management process.
VRM and third-party risk management, or TPRM, are often used interchangeably. However, vendor risk management may only refer to product or service providers, while third-party risk management can extend to partners, contractors, and other affiliates.