How to Use Due Diligence Software to Reduce Risks in Vendor Relationships

Due diligence software streamlines and automates tedious tasks such as reviewing and documenting information about vendors and compliance. It can help reduce the risk of third-party relationships and aid companies in saving money by eliminating unnecessary costs. It can eliminate the need for ad hoc requests and helps businesses meet audit requirements such as SSAE-16 type II certified data centers, ISO 27001 certification, and AES 256 encryption of data.

One of the best vendors is Whistic that lets users modify and automate the due diligence process by offering both premium and standard questionnaire templates. It also ensures that all participants can collaborate during the review process. It also offers the trust catalog, which allows users to evaluate thousands of vendors without having them submit questionnaires or wait for their responses. Pricing information for Whistic is available only upon request.

Alongside reducing risks, the due diligence process can be beneficial for both the sellers and buyers. The seller can do a self-assessment to attract prospective buyers, while the buyer can use it to evaluate the potential for growth of the company and its products.

Due diligence can be a difficult and stressful process for both parties. Especially when dealing with third-party vendors, where the majority of the security weaknesses originate from. This is why it’s essential to take every precaution to protect your business from third-party risk. This includes conducting periodic reviews of all your suppliers, and re-assessing their read the article risk level every time a new security flaw is discovered.