Third-Party Due Diligence Software
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What’s Third-Party Due Diligence Software?
If you’re frequently handling due diligence questionnaires (DDQs), it can be useful to implement a clear third-party management framework. One common way that companies do this is through third-party due diligence software, which makes it easier for teams to collaborate on complex responses.
So what are the advantages of the best vendor risk management software? Keep reading to find out.
Due diligence questionnaires (DDQs) are a common step in the proposal response process. Still, they can take up a lot of time, especially if your organization doesn’t have a solid third-party risk management framework.
By using software that helps improve third-party interactions, you’ll be able to scale your process and quickly respond to DDQs. Reducing your turnaround can give you an advantage in the bidding process—if you balance speed with quality.
Third-party due diligence software offers several features that improve your organization’s ability to draft quick responses for DDQs. For example, the best vendor risk management software provides automation that auto-fills answers by referencing a library of pre-approved content. This makes it faster to find your best content and automatically apply to it to future DDQs.
Benefits of Third-Party Management Software
Managing the response process for complex documents like DDQs and RFPs is no easy task. That’s why utilizing the right third-party risk management tools can be the difference between winning bids—versus struggling to advance. If you can equip your RFP team with the right resources, your company will reap the rewards.
The best third-party risk management software improves the DDQ process through several key features and benefits.
Stay organized with clear project tracking.
Third-party due-diligence software can set milestones that keep team members on track. You can also send comments and notifications to proposal team members so that everyone can collaborate with ease.
Streamline communication through Slack.
Loopio’s Slack integration lets you communicate with your team on DDQ projects without ever switching tabs.
Improve consistency with detailed changelogs.
Third-party management software also makes it possible to avoid issues with version control by automatically tracking updates to keep everyone on the same page.
Analyze your process with insightful data reports.
Software makes it easy to improve your RFP response process by providing your team with reports that explain where answers are being used by your proposal team.
What’s Third-Party Risk Management Software For?
One of the primary benefits of third-party risk management software is that it can help improve security. Top vendor risk management software is built with security in mind so that you have reliable experience with the platform.
When you choose a third-party risk management software for your business, it’s helpful to consider whether the software can maintain data confidentiality and integrity. Supplier risk management software that offers adequate data protection gives you peace of mind and helps keep your RFP response process secure. Third-party vendor risk management can be tricky to achieve securely, but doing so is very important.
Loopio’s customer data is hosted through Amazon Web Services (SOC 1, SOC 2, and SOC 3 certified). Our web servers and databases are load-balanced across multiple availability zones. In addition, Loopio uses industry-leading encryption methods to protect your data both in transit and at rest. Some of the other security features Loopio provides include single sign-on support, annual penetration testing, and compliance management for personal information.
Understanding Third-Party Software Vendors
If you are unfamiliar with the way third-party vendors work—start by doing some research. You may search for answers to a question like “third party company meaning.” Or, perhaps you’re wondering about the difference between third-party vs vendor?
Whichever situation you are in, working with third-party vendors gets complicated, especially if your organization works with multiple third-party vendors at once. Interactions with third parties in answering RFP questions are simplified through third-party management software—as it streamlines the response process for DDQs or other questionnaires.
When dealing with third-party vendor companies outside your organization, ensure you have security measures that adequately protect your data. Without secure third-party management software, it’s difficult to protect customer information.
When you work with third-party vendor companies, your business interacts with other companies outside of your own. Using third-party management software can help you improve your third-party interactions and have more successful third-party service examples. If you’re looking for third-party vendor risk management software—Loopio may not be the right solution for you—but there are many other third-party software vendors you can find on G2.
How to Select Third-Party Vendor Management Software
Picking the right vendor is not always simple or straightforward. However, a few simple checkpoints can help streamline the process. Here are the steps to consider whenever you search for third-party vendor management software.
Steps to Pick Your Ideal DDQ Software
- Do your research first. Take some time to look up a few likely options, then compare their merits and drawbacks. This can help you evaluate which vendor will be the best fit for your organization. (Don’t forget, vendor compliance software can help you ensure the vendors you work with comply with the necessary security precautions.)
- Read through reviews on G2. This can allow you to learn more about the software features and decide whether or not it meets your company’s needs before you make the final call to buy the software.
- Complete a trial of the software. This step is perhaps the most important. Trying out the tool yourself will help you determine if this particular software suits your team’s workflows.
- Understand compliance requirements. Once you have decided which vendor provides the best solutions, it’s a good idea to evaluate the vendor’s level of risk by reviewing security documentation. Vendor due diligence software can help with this task.
- Get internal buy-in. Stakeholders will need to be convinced of the software’s value and sign off before you implement a solution.
- Navigate pricing. Each vendor will have different pricing. Once you’ve chosen the right platform, you will likely have to negotiate a bit to settle on the best price. The best third-party vendors are usually very transparent about their pricing plans. Finalize your decision and purchase of the third-party software.
Read more about how to navigate the RFP solution buying process.
What’s Vendor Risk Management Software?
Vendor risk management software can benefit your business with security protocols like privacy and security training for employees. Third-party vendor risk management requires a team effort, so some of the best third-party due diligence software can help you create training programs that can help employees adhere to best practices regarding security. This improves your company’s vendor risk management process by maintaining stringent procedures and policies. Vendor risk management services also help with vendor evaluations. These evaluations also verify third-party vendors’ security and privacy policies when dealing with sensitive data.
While Loopio does not help teams assess vendors, it does help streamline the response process for DDQs, RFPs, RFIs, and more. With better third-party due-diligence software, you can streamline approvals from your internal team members—which makes the sales cycle 10% faster.
This is particularly important for companies who handle a high volume of DDQs (like asset management organizations and insurance companies) because these industries require a thorough security review. If you’d like to read more about vendor risk management examples, check out this story about the team at Hedgeserve.