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- Category: Risk Management
- Vendor Risk-Cost Matrix
Vendor Risk-Cost Matrix
The Vendor Risk-Cost Matrix is a 2x2 matrix used to assess the risk and cost of working with a particular vendor. It helps organizations make decisions about which vendors to work with, and how much to invest in them.
At a very high level, the Vendor Risk-Cost Matrix is used in the context of business, risk management.
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- Multichannel Attribution Matrix
- Multichannel Marketing Matrix
- Net Present Value Matrix
- Net Profit Margin Matrix
- Net Promoter Score-Insight Matrix
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- Net Promoter Score-Performance Matrix
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- Organizational Effectiveness-Value Alignment Matrix
- Organizational Effectiveness-Value Matrix
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- Organizational Effectiveness-Value Stream Alignment Matrix
- Organizational Health Assessment Matrix
- Organizational Health Matrix
- Organizational Performance Matrix
- Organizational Performance-Effectiveness Matrix
- Organizational Performance-Value Matrix
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- Organizational Resilience Matrix
- Organizational Resilience-Performance Matrix
- Organizational Resilience-Value Chain Alignment Matrix
- Organizational Resilience-Value Matrix
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- Organizational Risk-Opportunity Matrix
- Organizational Structure-Value Matrix
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- Outsourcing Risk-Value Matrix
- Paid Search-Competitive Positioning Matrix
- Partner Selection Matrix
- Partnership Marketing Matrix
- People Capability Maturity Matrix
- Perception-Positioning Matrix
- Performance and Potential Matrix
- Performance Appraisal Matrix
- Performance Feedback Matrix
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- Performance Management-Value Chain Alignment Matrix
- Performance Management-Value Matrix
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- Performance Management-Value Stream Alignment Matrix
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- Performance-Value-Complexity Matrix
- Personality Assessment-Value Matrix
- Personalization Matrix
- PESTLE Analysis Template
- PICK Matrix
- Porter's Five Forces Framework
- Portfolio Analysis Matrix
- Portfolio Analysis-Evaluation Matrix
- Portfolio Analysis-Performance Alignment Matrix
- Portfolio Analysis-Value Alignment Matrix
- Portfolio Assessment-Performance Alignment Matrix
- Portfolio Optimization-Value Alignment Matrix
- Portfolio Optimization-Value Stream Alignment Matrix
- Portfolio Performance-Value Matrix
- Positioning Matrix
- Process Capability Assessment-Value Alignment Matrix
- Process Capability Matrix
- Process Capability-Performance Matrix
- Process Capability-Value Alignment Matrix
- Process Improvement Matrix
- Process Improvement Maturity Matrix
- Process Improvement-Performance Alignment Matrix
- Process Improvement-Value Alignment Matrix
- Process Improvement-Value Stream Alignment Matrix
- Procurement Capability-Value Matrix
- Procurement Maturity Matrix
- Product Adoption Matrix
- Product Costing Matrix
- Product Design Matrix
- Product Design-Development Matrix
- Product Design-Value Matrix
- Product Development Matrix
- Product Development-Reward Matrix
- Product Development-Risk Matrix
- Product Development-Risk-Value Alignment Matrix
- Product Development-Value Matrix
- Product Differentiation Matrix
- Product Feature Matrix
- Product Feature-Value Alignment Matrix
- Product Feature-Value Matrix
- Product Launch-Performance Matrix
- Product Life Cycle Matrix
- Product Portfolio Matrix
- Product Positioning Matrix
- Product Roadmap Matrix
- Product Roadmap-Performance Matrix
- Product-Market Fit Matrix
- Product-Market-Technology Matrix
- Product-Service Matrix
- Product-Service Mix Matrix
- Product/Market Matrix
- Productivity Improvement Matrix
- Program Management Maturity Matrix
- Project Benefit Matrix
- Project Charter Matrix
- Project Management Capability Assessment-Value Matrix
- Project Management Capability-Performance Alignment Matrix
- Project Management Capability-Value Proposition Alignment Matrix
- Project Management Capability-Value Stream Alignment Matrix
- Project Management Matrix
- Project Management Office Maturity Matrix
- Project Management-Performance Alignment Matrix
- Project Prioritization Matrix
- Project Prioritization-Alignment Matrix
- Project Risk Matrix
- Project Risk-Opportunity Matrix
- Project Risk-Value Matrix
- Promotions Matrix
- Prospecting Matrix
- Public Relations Matrix
- Purchase Decision Matrix
- Quadrant Analysis
- Quality Control Matrix
- Quality Control-Performance Matrix
- Quality Function Deployment Matrix
- Quality Management Capability Assessment Matrix
- Quality Management Capability-Value Alignment Matrix
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- Rational Decision-Making Matrix
- Recruitment Capability-Value Matrix
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- Relationship Management Matrix
- Relationship Marketing Matrix
- Relationship-Value-Complexity Matrix
- Requirements Traceability Matrix
- Resource Allocation Matrix
- Resource Allocation-Utilization Matrix
- Resource Capability Matrix
- Resource Utilization Matrix
- Risk Analysis Matrix
- Risk Assessment Matrix
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- Risk-Return Matrix
- Roadmap Matrix
- Root Cause Identification Matrix
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- Sales Effectiveness-Value Matrix
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- Service Capability-Value Matrix
- Service Delivery Capability Assessment-Performance Alignment Matrix
- Service Delivery Capability Assessment-Value Alignment Matrix
- Service Delivery Capability Maturity Assessment-Value Matrix
- Service Delivery Capability Maturity Matrix
- Service Delivery Capability-Value Alignment Matrix
- Service Delivery Matrix
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- Service Delivery Performance-Value Matrix
- Service Delivery-Value Alignment Matrix
- Service Delivery-Value Matrix
- Service Design and Delivery Capability Assessment Matrix
- Service Design and Delivery Matrix
- Service Design and Delivery-Value Alignment Matrix
- Service Design Matrix
- Service Excellence Matrix
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- Service Innovation-Value Matrix
- Service Innovation-Value Proposition Alignment Matrix
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- Skills Development-Value Matrix
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- Social Capital-Value Matrix
- Social Impact Assessment Matrix
- Social Media Analytics Matrix
- Social Media Capability Maturity Matrix
- Social Media Engagement Matrix
- Social Media Listening-Value Matrix
- Social Media Marketing Matrix
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What is the Vendor Risk-Cost Matrix?
A visual explanation is shown in the image above. The Vendor Risk-Cost Matrix can be described as a matrix with the following quadrants:
- Low Risk/Low Cost: Established companies with a proven track record and a low cost of doing business.
- Low Risk/High Cost: Established companies with a proven track record and a high cost of doing business.
- High Risk/Low Cost: New companies with an unproven track record and a low cost of doing business.
- High Risk/High Cost: New companies with an unproven track record and a high cost of doing business.
What is the purpose of the Vendor Risk-Cost Matrix?
The Vendor Risk-Cost Matrix is a 2x2 matrix used to assess the risk and cost of working with a particular vendor. It helps organizations make decisions about which vendors to work with, and how much to invest in them. The matrix is divided into four quadrants, each representing a different level of risk and cost.
The top-left quadrant is Low Risk/Low Cost. This quadrant represents vendors with a low risk of failure and a low cost of doing business. These vendors are usually the best choice for organizations looking to minimize their risk and cost. Examples of vendors in this quadrant are established companies with a proven track record and a low cost of doing business.
The top-right quadrant is Low Risk/High Cost. This quadrant represents vendors with a low risk of failure but a high cost of doing business. These vendors are usually the best choice for organizations looking to minimize their risk but are willing to pay more for the assurance of a low-risk vendor. Examples of vendors in this quadrant are established companies with a proven track record and a high cost of doing business.
The bottom-left quadrant is High Risk/Low Cost. This quadrant represents vendors with a high risk of failure but a low cost of doing business. These vendors are usually the best choice for organizations looking to minimize their cost but are willing to accept a higher risk of failure. Examples of vendors in this quadrant are new companies with an unproven track record and a low cost of doing business.
The bottom-right quadrant is High Risk/High Cost. This quadrant represents vendors with a high risk of failure and a high cost of doing business. These vendors are usually the worst choice for organizations looking to minimize their risk and cost. Examples of vendors in this quadrant are new companies with an unproven track record and a high cost of doing business.
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What templates are related to Vendor Risk-Cost Matrix?
The following templates can also be categorized as business, risk management and are therefore related to Vendor Risk-Cost Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.
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