New capability quantifies supplier risks and summarizes risk mitigation activity across all enterprise systems

Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm, has introduced the ISG Supplier Risk Exposure Scorecard™, which evaluates enterprise-wide supplier performance metrics, ranks potential risks at the supply chain and individual supplier level and summarizes all risk mitigation actions.

“ISG Research finds the average large organization relies on 56 critical service providers for IT and business operations,” said Rekha Acharya, partner, ISG GovernX®. “Providers add expertise, value and operational support, but opening a business to third parties also introduces risk. Business leaders need granular visibility into their entire organization’s use of third parties so they can understand the associated risks and prioritize the corrective actions needed to mitigate them.”

The new ISG Supplier Risk Exposure Scorecard draws supplier metrics from across an organization’s platforms into one clear, structured framework so enterprise users can identify risk hotspots, assess high-risk relationships, apply uniform governance standards, mitigate risks and monitor their results.

Reports are delivered in three layers of granular visibility, starting with board and executive-level reports for strategy and direction and drilling down to management-level reports of supplier relationship execution and operational-level reports of supplier delivery.

A client in the financial services industry is currently leveraging the platform for regulatory compliance, providing a clear risk and mitigation summary of their entire provider ecosystem to the board of directors and leadership team.

“Increased scrutiny from regulators and investors has put risk management at the top of boardroom agendas,” Acharya said. “To safeguard their operations, meet regulatory standards and ensure sustainable growth, leaders at all levels must actively participate in the governance of third-party relationships. This requires them to be able to quickly identify and take action to address vulnerabilities.”

The ISG Supplier Risk Exposure Scorecard is the newest addition to the suite of ISG Supplier and Contract Management solutions powered by the ISG GovernX end-to-end managed service and lifecycle management SaaS platform. GovernX automates the management of the entire contract lifecycle and provides a complete, customized view of the user’s contract and supplier ecosystem to improve supplier performance, decrease spend and reduce third-party risk.

Additional information on the full ISG GovernX SaaS platform is available on the ISG website.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

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The average large organization relies on 56 critical service providers for IT and business operations. The new ISG Supplier Risk Exposure Scorecard draws supplier metrics into one clear, structured framework so enterprises can understand and mitigate risk.