Risk-Based Vendor Segmentation

What is Risk-Based Vendor Segmentation?

This approach organizes the vendor portfolio according to inherent risk, criticality, regulatory impact, and control maturity. Segmentation improves resource allocation and oversight efficiency.

FAQs

Why segment vendors by risk?

It ensures high-risk vendors receive more attention.

Is segmentation dynamic?

Yes, it updates with risk changes.

Does segmentation support automation?

Yes, triggers can categorize vendors automatically.