Best Vendor Risk Management Softwares and Tools to Manage Supplier Risks in 2025

In 2023, hackers launched a supply chain attack on Okta’s network. They gained access to  Okta's support platform and extracted HTTP access tokens. This compromised the security of numerous clients, including major organizations like Caesars Entertainment and MGM Resorts International. All Okta customers were affected. Vendor Risk Management (VRM) software could have helped. It enables organizations to assess, monitor, and mitigate risks posed by third-party vendors.

Are you prepared for a supply chain attack?

The business world has become more complex, and roles have evolved to meet changing needs. Vendors are no longer providers of goods, staff, and services but partners in your long-term success. Organizations looking to address increasing risk across the digital supply chain must implement vendor risk management (VRM) software.

According to Gartner, 80% of legal and compliance leaders identified third-party risks after initial onboarding. Traditional methods for vendor risk management, like spreadsheets, don’t capture new and evolving risks. They don’t offer real-time threat intelligence and provide only a static view of vendor risk. The best VRM software helps you fully control the vendor management process.

This article comprehensively reviews the 6 best vendor risk management software to help you maximize their potential.

What Is Vendor Risk Management Software?

A vendor risk management tool that helps companies identify, assess, and mitigate potential risks associated with third parties. It monitors their security practices and compliance with relevant regulations to ensure organizations aren’t exposed to legal or ethical risks. The software provides a streamlined approach to managing vendors and covers the entire vendor lifecycle, from onboarding to offboarding.

Companies that rely heavily on vendors but lack visibility into their vendor networks expose themselves to many risks. Good vendor risk management software helps organizations achieve control over their third-party attack surface. Vendor risks are detected and remediated before cybercriminals exploit them. A robust VRM tool helps companies anticipate potential risks rather than react to adverse situations when they occur.

Benefits of Vendor Risk Management Software

Dedicated VRM tools can simplify vendor risk management tasks in your organization. The software helps you build effective, strategic partnerships with suppliers, streamlines workflows, and decreases costs.

1. Improved compliance

A supplier risk management tool provides a centralized platform to identify, assess, and mitigate risks associated with third-party vendors. Companies can proactively monitor vendor adherence to industry regulations and standards, reducing the likelihood of breaches and streamlining vendor relationships. You can integrate your suppliers into the system for better compliance management.

2. Automation

VRM software allows an organization to automate critical tasks and standardize processes. It streamlines identifying, assessing, and monitoring risks associated with third-party vendors. Automated data collection and real-time monitoring significantly reduce manual effort and improve the efficiency of vendor risk management processes.

3. Better contract management

Vendor risk management software can enhance your contract management strategy. It provides a centralized platform for assessing potential risks associated with vendors. You can make informed contract negotiations, take proactive mitigation strategies, and improve compliance monitoring.

4. Fewer errors and enhanced visibility

Manually adding data increases the likelihood of errors, especially when more than one person is assigned to the task. VRM software reduces the opportunity for mistakes found in manual processes. It provides visibility into each activity in a procedure, giving you an easy way to centralize processes and data.

Essential Considerations for Choosing Vendor Risk Management Software

When selecting vendor risk management software, you must look at some critical features to ensure the tool you choose can effectively identify, assess, and mitigate potential risks associated with third-party vendors. This ensures you partner with reliable and trustworthy suppliers while maintaining operational integrity. Here are some essential considerations when choosing vendor risk management software.

1. Logging risk data and tracking changes

The VRM tool must keep a comprehensive record of potential risks associated with vendors and monitor how those risks evolve over time. It must document all risks and show their likelihood, tolerance, impact, and response ratings. Based on the data provided, your organization can make informed decisions about mitigation strategies and ensure continuous improvement in vendor risk management practices. 

2. Security

The vendor risk management tool you choose directly impacts your organization's ability to identify and mitigate potential risks from third-party vendors. It should have robust safeguards in place to protect data and ensure compliance by verifying the security practices of your vendors. Confirm if the software has security compliance certifications like ISO 27001 or SOC 2 to safeguard your business.

3. User-friendliness

The platform’s user-friendliness directly impacts user adoption. Staff in different departments should be able to assess and manage vendor risks without technical expertise or significant training. This makes the risk management process across the organization more efficient.

4. Integration with your compliance management software

This prevents duplication of efforts and streamlines the compliance process because risks are linked to mitigating controls on a single platform. It also simplifies data aggregation and reporting during compliance audits, boosting efficiency and accuracy in managing vendor risks across the organization. 

The Best Vendor Risk Management Software at a Glance

Top 6 Vendor Risk Management Software

1. ComplyScore by Atlas Systems 

ComplyScore is designed to help organizations manage the risks associated with third-party vendors and partners. It uses AI to automate and streamline the identification, assessment, and mitigation of these risks. The third-party risk management (TPRM) platform offers real-time monitoring, customizable compliance frameworks, and automated alerts to streamline vendor management. E-signature technology ensures efficient contract management, and advanced security assessment reports support audits and client requirements. 

Key features

• Real-time monitoring: ComplyScore tracks regulatory updates and provides automated alerts for changes in legislation or upcoming deadlines, ensuring organizations stay compliant with the latest requirements
• Automated risk assessments: The software creates a comprehensive risk profile for each vendor and conducts risk assessments for various categories to identify potential vulnerabilities and risk areas
• Customizable compliance frameworks: Users can tweak compliance frameworks to fit their operational needs
• Onsite audit support: The VRM tool simplifies auditing with data tools and reporting features
• Robust reporting: Reporting and analytics features provide insights into vendor risks, ensuring organizations prioritize mitigation efforts

Pros

• Global reach: ComplyScore is used across 65+ countries and is adaptable to different regulatory environments
• Automated processes: Key compliance tasks and reporting are automated, which reduces the administrative burden
• Scalable: The platform is ideal for all organizations, so you can start small and scale
• Responsive support: Users say the customer support team is highly responsive to evolving needs
• Comprehensive reporting: The VRM software provides a comprehensive view of vendor risks, enabling organizations to address potential issues proactively

Cons

• Learning curve: While the platform is user-friendly, new users need time to fully use all features

2. Bitsight

This supplier risk management software helps organizations assess and mitigate third-party risks effectively. It provides data-driven insights to enable companies to make informed decisions about their vendor relationships. Its key strengths include real-time monitoring, smooth integrations, and AI-powered risk assessments.

Key features

• Security ratings: These provide a quantifiable measure of a vendor's cybersecurity posture, helping organizations identify potential risks quickly
• Advanced integrations: Bitsight seamlessly integrates with existing systems through open APIs for enhanced data flow across applications
• Threat intelligence: Detailed threat intelligence helps companies prioritize and address cyber threats before they strike

Pros

• Efficient patch management: Provides insights to help organizations quickly remediate vulnerabilities by applying security patches and managing patch deployment to minimize cyber risk
• Continuous monitoring: This allows for proactive risk management and reduces the time spent identifying and addressing vendor vulnerabilities

• Effective evidence collection: The software gathers relevant data, making the assessment process seamless and aiding in decision-making

Cons

• Focuses on external security: Bitsight’s core focus is external security issues, and it may not always capture all internal vulnerabilities
• Data enrichment issues: Some users report challenges with data enrichment
• High cost: The pricing model isn’t ideal for businesses looking for budget-friendly VRM software

3. SecurityScorecard

Organizations use this vendor risk management software to continuously monitor third-party risk, identify vulnerabilities, and work with vendors to rectify critical issues. The tool assesses businesses from an outside-in perspective to rate and understand their security risk. It provides data-driven insights into vendor security posture, helping companies make informed decisions about vendor selection.

Key features

• Real-time monitoring: Continuously tracks and updates the security posture of third parties and alerts companies when new issues are found
• Evidence locker: Acts as a central repository for managing compliance evidence, making it easy to vet potential vendors' compliance
• Threat intelligence: Detailed threat intelligence helps organizations prioritize and address vulnerabilities across various attack surfaces

Pros

• Customizable dashboards: These give companies at-a-glance visibility into their security posture for quick risk mitigation
• Actionable insights: Organizations can use actionable insights to prioritize risk mitigation efforts and improve vendor security
• Efficient patch management: Quickly identifies and applies security patches to software vulnerabilities to minimize exposure to potential cyber threats

Cons

• Limited customization: Some users have reported limited customization options for reporting and workflows
• Complex setup: Initial setup and implementation can be hard and may require some resources
• Cost: Can be expensive for smaller companies or those with limited budgets

4. Panorays

This supplier risk management software automates the assessment and management of cybersecurity risks posed by vendors. It offers a tailored approach to risk assessment, adapting to the potential impact of each vendor. Panorays provides a comprehensive and dynamic view of vendor risk by combining external attack surface analysis with automated security questionnaires.

Key features

• Risk DNA: This feature assigns each third party a real-time rating, helping companies adjust security measures continuously
• Automated questionnaires: These speed up the assessment process, thanks to AI-powered validation of questionnaire responses
• Supply chain visibility: Monitors the cybersecurity posture of all third-party vendors and immediately sends alerts on vulnerabilities and breaches

Pros

• Actionable insights: Out-of-the-box reporting features simplify complex data for better decision-making
• Collaboration tools: These facilitate vendor collaboration, making it easy to manage security issues and track remediation progress
• Automation streamlines vendor risk management: Automated questionnaires, external attack surface evaluations, and business context reduce the administrative burden

Cons

• Limited integrations: Panorays offers limited integrations with other systems, a deal-breaker for some companies
• Over-reliance on external data: The quality of the data collected from external scans and questionnaires dictates the accuracy of risk assessments
• Cost: Some users have complained that it’s expensive

5. UpGuard Vendor Risk

This popular third-party risk management platform addresses the entire VRM lifecycle. It provides a comprehensive view of vendor risk by combining questionnaire-based assessments, security ratings, and attack surface analysis. Organizations use it to efficiently assess and manage risks associated with third-party vendors with minimal manual effort.

Key features

• Attack surface monitoring: Monitors third-party attack surfaces to identify potential vulnerabilities across vendor relationships
• Regulatory compliance tracking: Helps organizations monitor and assess how well their vendors align with various industry regulations, like HIPAA and NIST 800-53
• Advanced integrations: The cybersecurity platform easily integrates with other security tools and systems to give users a comprehensive view of their cybersecurity risks

Pros

• Comprehensive visibility: Security ratings, questionnaires, and attack surface analysis provide a holistic view of vendor risk
• Risk scoring accuracy: UpGuard Vendor Risk uses risk scoring to accurately assess the cybersecurity risk of a third party to show their security posture
• Collaboration tools: Organizations can easily collaborate with their vendors on the platform to manage security issues

Cons

• Reliance on public data: Since security ratings are based on public data, they may not always give an accurate picture of a vendor's security posture
• Integration can be complex: Integrating UpGuard with existing business systems and workflows can be difficult
• Heavy focus on cybersecurity: The software’s primary focus is cyber risk, and it prioritizes this over other types of vendor risk, like financial or operational risks

6. Sprinto

Sprinto streamlines vendor risk management by providing a single platform to assess vendor risk and ensure compliance. The cloud-based vendor risk management tool offers automated vendor discovery, continuous risk monitoring, AI-powered risk assessments, and compliance mapping to help businesses manage vendors without compromising security.

Key features

• SSO-based vendor discovery: Automatically identifies and logs every third-party connection, including infrastructure providers, ticketing tools, and workspace clouds
• Compliance mapping: Automatically maps a vendor's existing controls and practices against specific compliance frameworks by assessing their alignment with the required compliance standards
• Continuous monitoring: Sprinto provides real-time feedback on the compliance posture and security of systems and processes, and breach notifications are sent within 48 hours

Pros

• Improved visibility: Organizations have better visibility into vendor security and compliance posture
• Time-saving automation: Tasks such as vendor discovery and risk assessments are automated, saving time and resources
• Comprehensive risk insights: Automated analysis and monitoring tools allow businesses to identify and mitigate potential vendor risks proactively 

Cons

• Not a dedicated VRM software: Sprinto isn’t designed specifically for VRM and lacks some crucial features found in other tools, such as security ratings and attack surface analysis
• Higher cost: It can be a costly solution, especially for smaller organizations
• Frequent UI Changes: The user interface is updated frequently, confusing users

Stay Compliant and Take Control of Vendor Risk Management with Atlas Systems

Managing your vendors through non-automated methods isn’t sustainable or scalable. It also consumes too much time. Vendor risk management software improves visibility and reporting, helping your organization manage vendor risk successfully.

ComplyScore by Atlas Systems automates all aspects of vendor relationships, from procurement to purchasing. We’ve helped our clients save millions of dollars through better spend management, process automation, and reduced financial risks. Contact us today to discover how we can help grow your business.

FAQs about vendor risk management software

Is vendor risk management software suitable for small businesses?

Yes, it can help them efficiently assess and manage risks associated with their vendors, even with a smaller budget. 

How long does it take to implement vendor risk management software?

It can take weeks to a few months to fully implement the software. The implementation time depends on several factors, such as the VRM software being implemented and your organization's needs.