Governance Structure
Vendor management requires cross-functional governance involving procurement, risk, finance, and business stakeholders. Over-governance creates procurement bottlenecks that drive shadow IT. Under-governance exposes the organization to financial, operational, security, and compliance risks.
Vendor Management Governance Committee
| Role |
Responsibility |
Meeting Attendance |
| Chief Procurement Officer (Chair) |
Strategic sourcing direction, policy decisions |
All meetings |
| TPRM Manager |
Risk assessment oversight, risk acceptance decisions |
All meetings |
| Contract Manager |
Contract lifecycle governance, terms standardization |
All meetings |
| Finance Representative |
Budget oversight, spend analytics |
All meetings |
| Security Representative |
Vendor security assessments |
Monthly |
Data Ownership Matrix
Clear data ownership ensures accountability for data quality, completeness, and currency across all object types.
Vendor Object Type
| Aspect |
Owner |
| Data Steward |
Vendor Manager |
| Update Authority |
Vendor Managers, Procurement Analysts |
| Validation Owner |
TPRM Team |
| Archive Authority |
Vendor Management Lead |
Contract Object Type
| Aspect |
Owner |
| Data Steward |
Contract Manager |
| Update Authority |
Contract Administrators |
| Validation Owner |
Contract Owner (per contract) |
| Archive Authority |
Contract Manager |
Governance Note: All contracts greater than $25,000 annual value must be registered. Contract records retained for 7 years after expiration.
Risk Approval Matrix
Vendor risk governance requires clear thresholds determining who can approve vendor engagement at different risk levels.
| Risk Level |
Approval Authority |
Additional Requirements |
| Critical |
Governance Committee + Executive Sponsor |
Business case, documented risk acceptance, quarterly reviews |
| High |
TPRM Manager + Business Unit VP |
Documented risk acceptance, semi-annual reviews |
| Medium |
TPRM Analyst + Business Owner |
Standard mitigation tracking, annual reviews |
| Low/Minimal |
Vendor Manager |
Standard vendor management |
Review Cadences
Daily Operations
- Contracts expiring within 120 days review
- Critical vendor issues triage
- SLA breach alerts review
Weekly Reviews
- Monday: Vendor Operations Meeting
- Tuesday: New vendor onboarding pipeline
- Wednesday: Contract renewal decisions
- Thursday: Issue resolution progress
- Friday: SLA performance summary
Monthly Reviews
| Activity |
Owner |
Week |
| Vendor Governance Committee |
CPO (chair) |
Week 1 |
| Risk assessment completeness |
TPRM Manager |
Week 2 |
| Spend variance analysis |
Finance |
Week 2 |
| SLA performance report |
Vendor Manager |
Week 3 |
| Contract portfolio status |
Contract Manager |
Week 4 |
Quarterly Reviews
- Vendor Portfolio Review by Governance Committee
- Critical vendor business reviews (QBRs)
- Risk assessment refresh for Critical vendors
- Performance reviews for Critical/High vendors
- Consolidation opportunity identification
Escalation Procedures
Issue Escalation Levels
| Level |
Authority |
Response Time |
| L1 |
Vendor Manager |
Within SLA |
| L2 |
Vendor Management Lead |
4 hours (Critical), 1 day (High) |
| L3 |
TPRM Manager / Contract Manager |
1 day |
| L4 |
CPO / Governance Committee |
2 days |
Contract Renewal Escalation
| Days to Notice Deadline |
Escalation Action |
| 90 days |
Notify Contract Owner and Business Owner |
| 60 days |
Escalate to Vendor Management Lead |
| 45 days |
Escalate to CPO |
| 30 days |
Emergency Governance Committee review |
Data Quality Rules
Quality Targets
| Object Type |
Quality Target |
Measurement |
| Vendor |
95% pass all rules |
Monthly data quality scan |
| Contract |
98% pass all rules |
Weekly renewal review |
| Risk Assessment |
100% Approved before vendor activation |
Onboarding checklist |
| Spend |
95% categorized within 5 days |
Monthly reconciliation |
Schema Forge