Information Services Group (ISG), a global AI-centered technology research and advisory firm, has introduced the ISG Supplier Risk Exposure Scorecard™. This new offering evaluates enterprise-wide supplier performance metrics, ranks potential risks at both the supply chain and individual supplier levels, and summarizes risk mitigation actions.
ISG research indicates that an average large organization relies on 56 critical service providers for its IT and business operations. The ISG Supplier Risk Exposure Scorecard is designed to consolidate supplier metrics into a clear, structured framework, enabling enterprises to comprehend and mitigate these associated risks.
Rekha Acharya, partner at ISG GovernX®, stated, “Providers add expertise, value, and operational support, but integrating third parties also introduces risk. Business leaders require granular visibility into their entire organization’s use of third parties to understand the associated risks and prioritize corrective actions for mitigation.”
The Scorecard unifies supplier metrics from across an organization’s platforms, allowing users to identify risk hotspots, assess high-risk relationships, apply uniform governance standards, mitigate identified risks, and monitor their outcomes. Reports are delivered in three layers of visibility: strategic board and executive-level reports, management-level reports detailing supplier relationship execution, and operational-level reports on supplier delivery.
A client within the financial services industry is currently utilizing the platform for regulatory compliance, providing a clear risk and mitigation summary of their entire provider ecosystem to their board of directors and leadership team.
“Increased scrutiny from regulators and investors has placed risk management at the forefront of boardroom agendas,” Acharya added. “To safeguard operations, meet regulatory standards, and ensure sustainable growth, leaders across all levels must actively participate in the governance of third-party relationships. This necessitates the ability to quickly identify and address vulnerabilities.”
The ISG Supplier Risk Exposure Scorecard is the latest addition to ISG’s suite of Supplier and Contract Management solutions. These solutions are powered by the ISG GovernX, an end-to-end managed service and lifecycle management SaaS platform. GovernX automates the entire contract lifecycle, providing a customized view of a user’s contract and supplier ecosystem to enhance supplier performance, reduce expenditure, and decrease third-party risk. ISG, founded in 2006, serves over 900 clients globally, including 75 of the world’s top 100 enterprises, with its team of 1,600 professionals.
