Vendor Risk Matrix

What is the Vendor Risk Matrix?

A visual explanation is shown in the image above. The Vendor Risk Matrix can be described as a matrix with the following quadrants:

1. Low Risk: Vendors with a long history of successful business relationships and are well-established in their industry.
2. Moderate Risk: Vendors with a shorter history of successful business relationships, or may have a less-than-stellar reputation in their industry.
3. High Risk: Vendors with a history of legal or financial problems, or may be new to the industry.
4. Very High Risk: Vendors with a history of fraud or other criminal activity, or may be operating in an industry with a high risk of fraud or other criminal activity.

What is the purpose of the Vendor Risk Matrix?

The Vendor Risk Matrix is a 2x2 matrix used to assess the risk of working with a particular vendor. It is used to identify the level of risk associated with a vendor and to determine the appropriate level of due diligence. The matrix is divided into four quadrants, each representing a different level of risk: Low, Moderate, High, and Very High.

The Low Risk quadrant is for vendors that have a low risk profile and require minimal due diligence. These vendors typically have a long history of successful business relationships and are well-established in their industry. Examples of vendors in this quadrant include large, established companies with a good track record.

The Moderate Risk quadrant is for vendors that have a moderate risk profile and require additional due diligence. These vendors may have a shorter history of successful business relationships, or may have a less-than-stellar reputation in their industry. Examples of vendors in this quadrant include smaller companies or those with a history of customer complaints.

The High Risk quadrant is for vendors that have a high risk profile and require extensive due diligence. These vendors may have a history of legal or financial problems, or may be new to the industry. Examples of vendors in this quadrant include startups or companies with a history of customer dissatisfaction.

The Very High Risk quadrant is for vendors that have a very high risk profile and require significant due diligence. These vendors may have a history of fraud or other criminal activity, or may be operating in an industry with a high risk of fraud or other criminal activity. Examples of vendors in this quadrant include offshore companies or those operating in a high-risk industry.

Want to try this template?

What templates are related to Vendor Risk Matrix?

The following templates can also be categorized as business, finance and are therefore related to Vendor Risk Matrix: AIDA Marketing Matrix, Affiliate Marketing Matrix, Agile Capability-Value Alignment Matrix, Agile Scaling Matrix, Ansoff Matrix, Asset Allocation Matrix, BCG Matrix, Brand Affinity Matrix. You can browse them using the menu above.

How can I use Vendor Risk Matrix in Priority Matrix?

You can get Vendor Risk Matrix in your Priority Matrix in just a moment:

1. Click to sign in or create an account in the system
2. Start adding your items to the matrix
3. If you prefer it, download Priority Matrix and take your data with you

Learn more about Vendor Risk Matrix, and get free access to lots of other templates, at templates.app. Once you are comfortable with the document, you can easily export to Excel, if you prefer to work that way.

If you have any questions and you can't find the answer in our knowledge base, don't hesitate to contact us for help.