Vendor Risk Manager: Safeguarding Organizations Through Third-Party Security Oversight

Third-party relationships are essential to business operations, but they also introduce serious security and compliance risks. That’s where the Vendor Risk Manager comes in—a specialist responsible for evaluating, monitoring, and reducing risks associated with external vendors, suppliers, and service providers. As supply chain attacks rise, this role has become mission-critical to cybersecurity and governance programs.

What Is a Vendor Risk Manager?

A Vendor Risk Manager oversees the lifecycle of third-party risk: onboarding, due diligence, contracting, continuous monitoring, and offboarding. They ensure that external partners meet security, privacy, and compliance requirements, and they help internal teams make informed decisions about which vendors to use and how to mitigate potential risks.

Key Responsibilities of a Vendor Risk Manager

1. Vendor Onboarding & Due Diligence

Conducting assessments, reviewing security questionnaires, analyzing control gaps, and validating vendor posture.

2. Risk Assessments & Scoring

Evaluating vendors based on frameworks like NIST, ISO 27001, SOC 2, and internal risk methodologies.

3. Continuous Monitoring

Tracking vendor performance, security alerts, compliance renewals, and new threats or vulnerabilities.

4. Contract & SLA Review

Ensuring legal and procurement teams include appropriate security, privacy, and data protection requirements.

5. Reporting & Risk Register Updates

Providing leadership with actionable insights to maintain visibility into the vendor ecosystem.

Skills and Qualifications Needed

Technical Skills

• Understanding of security controls and frameworks (NIST CSF, ISO 27001, SOC 2, CIS)

• Experience with vendor risk platforms (OneTrust, Archer, ServiceNow VRM, Prevalent, BitSight, SecurityScorecard)

• Knowledge of third-party assessment methodologies and scoring models

• Ability to review audit reports, pen test reports, and compliance certifications

• Familiarity with procurement, contract language, and risk remediation plans

Soft Skills

• Exceptional communication skills for interacting with vendors and stakeholders

• Strong negotiation and influencing abilities

• Analytical thinking to assess and compare vendor risks

• Clear documentation and reporting skills

• Relationship management and diplomacy

Other Useful Skills

• Experience with governance frameworks and risk registers

• Understanding of cloud security for SaaS vendor evaluations

• Knowledge of privacy laws and data-handling requirements

Certifications

• CRVPM (Certified Third-Party Risk Professional)

• CTPRP (Certified Third Party Risk Professional)

• CISA

• CRISC

• Security+ (helpful for foundational security understanding)

Career Outlook

Vendor Risk Managers are increasingly in demand as organizations expand their reliance on third-party cloud providers and SaaS solutions. The role often leads to paths such as:

Vendor Risk Lead → Third-Party Risk Manager → GRC Manager → Director of Vendor Risk → Head of TPRM