Manage Vendor Risk in a Few Practical Steps

This opinion article recommends a governance framework for third-party information risk, instructing management and boards to Measure → Validate Coverage and Confidence → Compare → Explain → Aggregate → Benchmark → Treat and Transfer → Govern. It emphasizes measuring residual exposure, validating review coverage and confidence, reporting exceptions and concentrations, assessing financial exposure and risk transfer, and delivering concise, quantitative board-level reporting to enable disciplined oversight.