The 14 Best Vendor Risk Management Tools in 2024

The 14 Best Vendor Risk Management Tools in 2024

As connections among participants in the business ecosystem become more complex, every business decision can have a ripple effect across operations. A staggering 98% of organizations worldwide have faced security breaches due to vendor-related issues (Source: HIPAA Journal), illustrating how partnerships with potential vendors can either optimize or undermine these efforts. This highlights the imperative for rigorous vendor risk management (VRM) tools.

Navigating an increasingly complex landscape of vendor interactions requires scrutiny when making management decisions about who gets access to critical and confidential information. From safeguarding sensitive data to meeting compliance requirements under stringent regulations, the right VRM solution can make all the difference by helping in analyzing the cybersecurity health of external partners. In this article, we explore the top vendor management tools designed to strengthen your vendor relationships and shield your organization from potential disruptions including reputational risk and strategic risk.

Continue reading as we delve into essential features and benefits that these tools offer, empowering you to make informed decisions and safeguard your business's continuity and integrity.

What is Vendor Risk Management Software?

Vendor Risk Management (VRM) software empowers security teams to prevent third party attacks, ensuring vendor risks are identified and mitigated before cybercriminals can exploit them. The significance of VRM tools extends beyond merely reducing data breach costs. It is essential to manage third party relationships by identifying, tracking, analyzing, and mitigating potential risks these relationships might introduce. They ensure a smooth onboarding process and facilitate meticulous due diligence, making them an integral part of any risk management strategy. By assessing vendor reliability, security practices, and compliance with regulatory requirements, VRM software helps businesses safeguard sensitive data and maintain high cybersecurity standards.

Typically, VRM software offers features such as continuous control monitoring, automated vendor risk management, and real-time alerts. These capabilities allow organizations to stay vigilant and respond swiftly to potential threats. Integrating VRM tools into their security infrastructure enables businesses to establish more secure and transparent vendor relationships, enhancing their overall security posture.

Compliance with various industry regulations and standards is particularly crucial in sectors like healthcare, finance, and government. By implementing the best VRM solution, organizations can demonstrate their commitment to maintaining high security and compliance standards and building trust with clients and partners.

Next, we will explore the top 14 vendor risk management tools, examining their key features, pros, cons, and pricing to help you choose the best solution for your needs.

Top 14 Vendor Risk Management Tools

1. Cyber Sierra

Cyber Sierra is a comprehensive vendor risk management solution that helps enterprises secure their businesses by bridging the gap between cyber insurance and effective third-party risk management.

Founded in June 2021, Cyber Sierra originally aimed to simplify cyber insurance but quickly expanded to address broader industry needs for enhanced vendor risk management solutions and continuous control monitoring.

The AI-powered platform is broadly recommended by cybersecurity experts for its holistic approach to vendor risk monitoring and assessment.

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Key Features

Cyber Sierra excels in delivering exhaustive vulnerability scanning and assessment capabilities. Here are several reasons why the exceptional tool is preferred by cybersecurity professionals and compliance management personnel alike:

• Security Questionnaire Automation: Cyber Sierra automates vendor questionnaire processes with AI autofill and enhancement capabilities, reducing response times significantly.
  
• Risk Remediation Workflows: The tool offers built-in workflows to prioritize and address identified risks promptly.
  
• Global Scanning: Thorough scans are conducted across entire attack surfaces, including networks, servers, endpoints, and third party applications.
  
• Automated Detection: Automation of vulnerability scanning processes to minimize human error and ensure timely identification of security risks is a major plus point.
  
• Detailed and Customizable Reporting: Generates in-depth reports detailing discovered vulnerabilities, severity levels, and potential impacts for informed decision-making.
  
• Seamless Integration and Compatibility: Cyber Sierra integrates with a variety of development and security tools, supporting DevOps teams in embedding robust security practices.
  
• Customizable Compliance Templates: The tool offers pre-built templates customizable to comply with GDPR, HIPAA, PCI-DSS, and ISO 27001 standards, streamlining continuous compliance efforts.
  
• User-Friendly Interface: Designed with an intuitive interface accessible to cybersecurity consultants and IT administrators alike, Cyber Sierra enhances your organization’s overall operational efficiency as well.

Pros

• AI integration that enhances vulnerability scanning accuracy through AI-driven capabilities.
  
• Comprehensive coverage which ensures thorough scans across diverse digital systems and applications.
  
• Continuous monitoring which enables the swift detection of emerging vulnerabilities, bolstering proactive security measures..
  
• User-friendly reports provide actionable insights with detailed, easy-to-understand reports.
  
• Compliance assistance which facilitates adherence to industry security standards and regulatory requirements.
  

Cons

• Initial costs may be steep for startups or smaller organizations, although the tool has remarkable scalability that can adjust to the requirements of businesses of all sizes.
  

Pricing

For detailed pricing information, contact Cyber Sierra directly to tailor a solution that meets your specific cybersecurity needs. Book a 100% free demo today to experience Cyber Sierra’s security-enhancing features firsthand!

2. OneTrust

OneTrust offers a complete solution to manage the entire third party risk lifecycle, from onboarding to continuous control monitoring. It provides gap reports on thousands of third parties, reducing blind spots and enabling smarter vendor decisions, making it perfect for small and medium-sized businesses (SMBs).

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Key Features

• Unified third party Vendor Relationship Inventory: Centralized view of all vendor relationships for easier management and oversight.
  
• Analytics and Insights Engine: Utilizes data analytics to provide actionable insights into third party risks.
  
• Dynamic Questionnaires: Customizable to vendor-specific risks, ensuring thorough assessments.
  
• Intelligent Onboarding Workflows: Automates the vendor onboarding process with checks and balances.
  

Pros

• Well-integrated with other OneTrust solutions and third party data sources.
  
• Advanced analytics for risk-based prioritization.
  
• Seamless integration with other security tools.
  
• User-friendly platform, easy to navigate.
  

Cons

• Room for improvement in native integrations.
  
• Risk-scoring mechanisms may have a delay in representing the true state of an organization’s external attack surface.
  

Pricing:

Flexible pricing to meet your organization's needs. Starting at $600 per month for Small Businesses. Contact OneTrust for tailored pricing based on your organization’s scale and requirements.

3. Panorays

Panorays provides a risk-based third party Risk Management (TPRM) platform that uses a customized model of risk assessment based on the business relationship with vendors. This approach helps prioritize key vendor relationships and enhance monitoring and is especially suitable for sectors like banking, insurance, and financial services in the NA, UK, and EU regions, offering a complete solution to manage vendor risks effectively.

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Key Features

• Risk DNA Technology: Utilizes a variety of factors to create accurate risk maps and real-time ratings.
  
• Remediation Plans: Develop and share plans with vendors to close compliance gaps.
  
• Strong Customer Feedback Loops: Excellent support from developers and customer support representatives.
  

Pros

• Strong self-assessment module.
  
• Excellent customer support and feedback.
  

Cons

• Integration capabilities are limited.
  
• Risk scoring methodology considers a limited scope of third party data leakage.
  

Pricing

Flexible Pricing based on your needs. Contact Panorays today for more information on the pricing package of your choice.

4. SecurityScorecard

SecurityScorecard is a solid option for firms looking to streamline compliance operations and be audit-ready. Below, we look at how SecurityScorecard performs across seven essential Vendor Risk Management (VRM) elements to help you decide if it's a good fit for your needs.

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Key features

• Attack Surface Monitoring: SecurityScorecard detects internal and third party security threats by analyzing public-facing attack vectors such as open ports, DNS, HSTS, and SSL. However, its weekly risk check refresh pace can provide inaccurate security ratings when compared to competitors such as UpGuard, which updates its scans daily.
  
• Automation of Security Questionnaires: By making answer suggestions based on previous submissions, automation technology expedites questionnaire responses and can cut completion times by up to 83%. A collection of surveys that are in line with widely accepted rules and guidelines is also available on the platform.
  
• Risk Remediation Workflows: As a result of acquiring LIFARS, SecurityScorecard is now able to offer managed remediation services following a data breach. Users have the option to describe compensatory controls or make resolution requests. Scalability, however, can be impacted by the incomplete integration within the VRM workflow.
  

Pros

• Detailed attack surface observation.
  
• Automation of security questionnaires with efficiency.
  

Cons

• Seamless data sharing may be hampered by separate licensing for important functionalities.
  
• Accurate ratings may be delayed by the risk checks' weekly refresh rate.
  

Pricing

For customized pricing based on your organization's specific needs, contact SecurityScorecard.

5. UpGuard

UpGuard offers a Vendor Risk Management (VRM) service provider tailored for organizations seeking to manage the entire VRM lifecycle effectively. It provides instant insights into vendor-security risks, tracks regulatory compliance, conducts thorough risk assessments, and automates workflows for seamless operations.

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Key Features

• Attack Surface Monitoring: Monitors internal and third party attack surfaces, including fourth-party landscapes, to identify emerging risks and vulnerabilities.
  
• Vendor Risk Assessment Management: Streamlines the end-to-end risk assessment process, from gathering evidence to making risk management decisions.
  
• Risk Remediation Workflows: Offers built-in workflows to prioritize and address identified risks promptly.
  

Pros

• AI-powered automation reduces manual effort in questionnaire completion and enhances response accuracy.
  
• The vendor risk profile provides a complete description of every risk affecting security posture measurements, expressed as security ratings.
  

Cons

• Initial setup and configuration may require time and resources.
  
• Pricing structure based on company size and complexity may vary.
  

Pricing 

Contact UpGuard for tailored pricing based on your organizational requirements and scale.

6. BitSight

With its unique risk matrix methodology, BitSight offers a risk-based third party risk management (TPRM) platform that makes accurate risk reporting and prioritization possible. BitSight is a great option for businesses requiring in-depth vendor risk assessments because of its extensive network of over 40,000 vendor profiles, which provides strong vendor profiling and assistance.

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Key Features

• Extensive Vendor List: Access to more than 40,000 vendor profiles.
  
• Automated Onboarding Assessments: Vendor onboarding procedures are accelerated.
  
• Reporting in Real Time: Offers reporting and risk prioritization in real-time.
  
• Vendor Security Posture Tracking: Quantifies security postures using numerical ratings and keeps data for 12 months.
  

Pros

• Compatible with most other TPRM systems.
  
• Provides free cybersecurity reports to clients and non-customers alike.
  
• Users can generate personalized alarms.
  

Cons

• No solutions for addressing highlighted vulnerabilities.
  
• Opportunities for forums and peer communities are limited.
  
• Customer support representatives may not be available at all times.
  

Pricing

Contact BitSight for offers and customized pricing based on your organization's specific needs.

7. Tenable 

Tenable excels as an advanced Vendor Risk Management (VRM) tool, offering a risk-based approach enhanced with machine learning capabilities. It provides extensive visibility across multiple attack surfaces and features advanced scanning capabilities to produce detailed vulnerability reports.

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Key Features

• Risk-Based Insights: Advanced analytics provide all-around visibility for compliance teams.
• Cyber Exposure Monitoring: Detailed analysis and benchmarking of vendors' cyber risks.
• Vulnerability Management: Alerts for third party vulnerabilities with options for mitigation.

Pros

• Advanced analytics for risk-based prioritization.
  
• Easy integration with other security tools.
  
• Actionable insights through detailed reporting.
  

Cons

• The steep learning curve for new users.
  
• Pricing might be high for smaller organizations.
  

Pricing

Tenable offers multiple solutions with varying fees, ranging from $4,708.20 for 1 year to $41,031.90 for 3 years. 

8. Prevalent

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Prevalent offers a versatile approach to third party Risk Management (TPRM) with both product and fully managed services. Their Global Vendor Intelligence Network and Vendor Assessment Services provide a full-service suite tailored to various organizational needs.

Key Features

• Robust Vendor Intelligence Network: Facilitates quicker and more informed decisions by cross-referencing vendor data.
  
• Automated Assessment Workflows: Speeds up the review cycles for vendor assessments.
  
• Pre-defined Assessment Library: Includes templates for GDPR, SOC 2, PCI DSS, and more, with the option to create custom assessments.
  

Pros

• Excellent customer support during onboarding and ongoing use.
  
• Continuous compliance framework.
  

Cons

• Automation features could be more advanced.
  
• The user interface may not be very intuitive.
  
• The accuracy of the Vendor Risk Score might be impacted by a lack of transparency in the scanning range.
  

Pricing

Flexible pricing to meet your organization's needs. Contact Prevalent for tailored pricing information.

9. Riskrecon

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RiskRecon, a part of the Mastercard company, specializes in delivering thorough and actionable insights into the cybersecurity health of third party vendors. Leveraging advanced scanning and analytics, RiskRecon helps organizations swiftly understand and mitigate risks associated with their vendors, partners, and suppliers.

Key Features

• Actionable Recommendations: Offers clear, actionable steps for risk mitigation to enhance third party security postures.
  
• Customizable Reporting: Generates tailored reports that align with organizational risk management frameworks and requirements.
  
• Attack Surface Monitoring: Real-time monitoring of vendor vulnerabilities, quantifying the likelihood of security incidents across 11 security domains and 41 attack vectors.
  

Pros

• Actionable mitigation recommendations.
  
• Customizable reporting for various stakeholder needs.
  

Cons

• May be more suited for larger organizations with complex ecosystems.
  
• Lack of inbuilt security questionnaire workflows.
  
• Dependence on legacy data for VRM insights.
  

Pricing 

Contact RiskRecon for customized pricing information.

10. ProcessUnity

ProcessUnity is designed to reduce the complicated process of due diligence through automation that can be customized for vendor and third party reviews. From capturing documentation to tracking compliance, ProcessUnity generates diligent reports to ensure your business's third party risk management is efficient and thorough. Top reviews highlight its automation capabilities, workflows, and ease of use.

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Key Features

• Helpful Mitigation Recommendations: Provides vendors with clear paths to resolve issues.
  
• Continuous Monitoring: Monitors external inherent risks, quantifying vendor security postures with security ratings.
  
• Vendor Risk Assessment Management: Supports pre- and post-contract due diligence phases.
  
• Regulatory Compliance Tracking: Focuses on compliance risks related to the Digital Operational Resilience Act (DORA) and the German Supply Chain Act (LkSG).
  

Pros

• Highly customizable and configurable for various stakeholder needs.
  
• End-to-end solution covering the entire TPRM lifecycle.
  

Cons

• Lacks comprehensive training modules.
  
• Customer support is reportedly slow, especially for queries about critical VRM features.
  

Pricing

Contact ProcessUnity for pricing information.

11. Sprinto

Sprinto is primarily a compliance platform that also offers risk management solutions, ensuring access to a robust continuous compliance framework that monitors risks within your third party ecosystem. It excels at alerting businesses to entity-level risks and ensures compliance with standards such as SOC 2, ISO 27001, PCI DSS, and more. Automating workflows, questionnaire templates, and recurring vendor assessments, Sprinto streamlines operations and enhances compliance management.

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Key Features:

• Vulnerability & Incident Management: Alerts and manages security incidents effectively.
  
• Systematic Escalations: Prioritizes recommendations for clear action paths.
  
• Role-Based Access Control: Ensures data security by defining access levels based on roles.
  

Pros:

• Real-time alerts and incident management enhance security monitoring and response.
  
• Deep integrations with existing systems minimize implementation challenges.
  
• Role-based access control enhances data security and governance.
  

Cons:

• Requires initial onboarding, set-up, and configuration time.
  
• Pricing details may vary based on feature requirements and organization size.
  

Pricing:

Contact Sprinto for detailed pricing based on factors such as your company's size, geographical distribution, related entities, and the complexity of your infrastructure.

12. Vanta

With an emphasis on streamlining compliance and risk assessment procedures, Vanta offers an integrated third party risk management solution. With Vanta, managing vendor risk becomes easier and your company can maintain compliance and security while adhering to important security and regulatory standards.

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Key Features

• Continuous Monitoring: Monitors compliance with security and legal requirements, but only covers a small portion of the external attack surface.
• Vendor Risk Assessment Management: Based on ISO 27005 principles, this feature provides inherent risk scores automatically to speed up risk assessment operations.
  
• Vendor Security Posture Tracking: Provides insights into risk assessment without taking data leaks or vendor security ratings into account.
  
• Cybersecurity Reporting Workflows: Use the Trust Report tool to create compliance reports.
  

Pros

• Simple workflows for tracking compliance and an easy-to-use UI.
  
• Tasks that are manually automated become more efficient and require less effort.
  

Cons

• Monitoring only covers a small portion of the external attack surface.
  
• Evaluations do not take vendor security ratings or data breaches into account.
  

Pricing

For information on prices specific to your company's requirements, get in touch with Vanta.

13. Drata

Drata is an excellent solution for firms who want to streamline compliance operations and assure audit readiness. Drata assists businesses in meeting regulatory standards and successfully managing vendor risks by automating compliance-related tasks.

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Key features

1. Vendor Risk Assessment Management: Integrates a policy builder into the assessment workflow to simplify compliance risk tracking.
   
2. Security Questionnaire Automation: Uses its Trust Center to expedite vendor security profiling while optimizing questionnaire workflow.
   
3. Risk Remediation Workflows: Automatically maps found risks to relevant controls and notifies on evolving threats.
   
4. Regulatory Compliance Tracking: Monitors compliance gaps against 14 common cybersecurity standards.
   

Pros

1. Easy UI for easy onboarding and efficient use.
   
2. Excellent client service.
   
3. Automated warnings help to streamline risk management.
   

Cons

1. Uses subjective ways to track vendor security posture.
   
2. Limited capacity to analyze asset risk's impact on vendor risk scores.
   

Pricing

Drata offers customized pricing based on your organization's specific needs.

14. Black Kite

Organizations seeking non-intrusive cyber reconnaissance, open-source threat intelligence, dynamic risk assessments, and complete reporting might choose Black Kite. It offers detailed insights into third party risks, assisting companies in making wise choices regarding their vendor agreements.

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Key Features

• Automation of Security Questionnaires and Document Parsing: AI is used to analyze cybersecurity paperwork and completed questionnaires, generating compliance and risk exposure scores for vendors.
  
• Regulatory Compliance Tracking: This approach maps identified risks to regulatory frameworks like SOC 2, NIST, GDPR, and ISO 27001 automatically, using artificial intelligence to create detailed compliance risk exposure profiles.
  
• Vendor Security Posture Tracking: Rates technical security in a variety of attack vector domains; nevertheless, the accuracy of the risk score may be impacted by a large number of data points.

Pros

• Detailed observation of external assault vectors.
  
• AI-powered parsing of cybersecurity documents and questions.

Cons

• No built-in process for risk assessment.
  
• A large number of data points may undermine the accuracy of risk scoring.
  

Pricing

For customized pricing based on your organization's specific needs, contact Black Kite.

Features to Look for in Vendor Risk Management Software

• Scan Types: Determine if the tool provides extensive scanning features, including host, network, web application, and cloud scanning. Every kind focuses on distinct aspects of your system, offering detailed insights into vulnerabilities in different environments.
  
• Vulnerability Database: Check whether the tool depends on a current, reliable vulnerability database. Proactive mitigation solutions are made possible by a strong database that guarantees accurate vulnerability identification across operating systems, applications, and network devices.
  
• Reporting: Look for a platform that can produce detailed reports. Reports on vulnerability assessments that are comprehensive should provide suggested repair activities, exploitability metrics, and severity levels. Knowing this is essential for properly prioritizing and handling security threats.
  
• Integration Capabilities: Assess how well the technology works with the security environment you currently have in place. Ticketing systems, SIEM (Security Information and Event Management), and seamless integration of other security solutions to improve operational efficiency and expedite operations.
  
• Ease of use: Choose a solution with an easy-to-use dashboard that offers actionable information and unambiguous risk assessments. Simplifying the scanning process and enabling rapid navigation through vulnerability data through an intuitive interface empowers IT managers and cybersecurity specialists alike.
  
• Cost: Consider the pricing structure carefully. Assess upfront costs, subscription fees, and whether the tool offers scalable pricing models to accommodate your organization's growth. Balance cost considerations with the tool's capabilities and value-added features.
  
• Technical Support: Prioritize tools backed by responsive technical support services. Timely assistance during the implementation, configuration, and troubleshooting phases can significantly impact the tool's effectiveness in safeguarding your digital assets.

How to Choose the Best Vendor Risk Management Software?

To help you choose the finest vendor risk management software, take into account these important factors:

1. Value and Cost

Consider the services you require in light of the stage of growth of your business. Assess whether you have a specific budget set up for third party risk management software or whether a complete compliance solution would be more appropriate. Think about whether you are getting ready for an audit or meeting client demands for a TPRM report. Although independent TPRM technologies may initially cost less, fragmented compliance solutions may result in greater total expenses.

2. User Interface

Evaluate the tool's accessibility for first-time users. If the interface is not user-friendly, determine if the product provides onboarding assistance and detailed documentation. Important points to consider are the onboarding process, availability of user manuals, compatibility with the existing system, and whether the product can be adjusted to match specific requirements.

3. Data Integrity

Incomplete or faulty data might provide false positives, resulting in poor risk evaluations. Evaluate the quality and dependability of the data utilized by the third party risk management software. Ensure that your data sources are reliable, up-to-date, and compatible with current systems.

4. Time and Resources

Consider the time required to complete a vendor assessment. Manual processes can lead to delays in critical relationships and disruptions in business operations. Key considerations include the assessment's duration, the need for extra staff training, the continued availability of assistance, whether the process can be automated to ensure continuous operation, and whether the tool generates reports to track and evaluate the task progress.

By taking these elements into account, you can select a vendor risk management software that meets your needs while also effectively improving your risk management operations.

How Much Does Vendor Risk Management Software Cost?

The cost of Vendor Risk Management (VRM) software can vary based on factors such as features, scalability, and vendor reputation, starting at $600 per month for smaller businesses. Pricing details are available upon request or through direct contact with the vendors. Remember to evaluate features, support, and scalability to choose the best fit for your organization’s needs.

Why Cyber Sierra? 

Cyber Sierra stands out as an advanced AI-powered vendor risk management program designed to provide comprehensive security solutions across digital environments. It excels in continuous control monitoring by offering real-time risk assessments based on risk intelligence and maintaining a centralized repository for streamlined asset management.

In the realm of third party risk management (TPRM), Cyber Sierra enhances vendor ecosystem security by identifying and prioritizing third party risks through automated assessments. It facilitates the ongoing monitoring of vendors, ensuring prompt action while neutralizing vulnerabilities. For Governance, Risk, and Compliance (GRC), Cyber Sierra’s tracking and reporting processes, audit simplification, data collection, and risk assessment capabilities are indispensable. Organizations benefit from its ability to maintain compliance across multiple frameworks, supporting robust security practices and regulatory adherence.

To summarize, effective vendor risk management (VRM) is no longer an option; it is a strategic need for enterprises. Businesses may protect their data, reputation, and overall resilience by proactively identifying, monitoring, and reducing third party vendor risks. Remember that VRM is an ongoing process that requires collaboration, automation, and constant progress. So, embrace comprehensive VRM procedures, strengthen your vendor connections, and remain ahead of the changing cybersecurity scenario.