Vendorapp › OpenVMO › Governance and ownership

Governance and ownership in OpenVMO.

Governance decides who is allowed to bring a vendor in, who answers for it once it is in, and who checks that the whole programme is working. At a startup it is a two-page policy and a few names, not a committee.

Open standard, CC BY 4.0 · Free, no sign-up · Works with a spreadsheet · Maps to SOC 2, ISO 27001, NIS2, DORA

Why it matters

What this domain is for.

Auditors and enterprise customers ask the same first question: who is responsible for this vendor? Without a named owner, renewals auto-renew, access outlives the contract, and nobody notices when a vendor changes what it does with your data.

Governance and ownership is one of the 11 domains of the OpenVMO framework, an open standard for running vendor management at a startup. Each practice below has a minimum maturity level: you only need the practices at or below the level you are aiming for.

Practices

The 6 GOV practices.

GOV-1 · Level 1

Approved policy

A vendor management policy exists, is approved by a founder or executive, and is reviewed at least once a year. Evidence: The signed policy with its approval date, and the date of the last review.

GOV-2 · Level 1

Owner for every vendor

Every vendor in the register has a named business owner who answers for the relationship. Evidence: The owner column of the register, with no blanks.

GOV-3 · Level 2

Programme lead

A vendor management lead is named, part-time is fine, with written responsibilities. Evidence: The lead’s name and responsibilities in the policy or a role description.

GOV-4 · Level 2

Third-party risk appetite

The company states what vendor risk it will and will not accept, for example "no Tier 1 vendor without SOC 2, ISO 27001 or compensating controls". Evidence: The appetite statement in the policy, approved by leadership.

GOV-5 · Level 3

Annual programme review

Once a year the programme is reviewed and the results are reported to the board or leadership team. Evidence: The review document or board paper, with its date and the actions agreed.

GOV-6 · Level 2

Defined roles

The roles of security, legal, finance and privacy in vendor decisions are written down. Evidence: A responsibility matrix (who is responsible, accountable, consulted and informed) in the policy.

A practice counts as in place only when a dated record shows it was performed. A tool that could perform it does not count on its own.

By stage

What good looks like at each level.

LevelWhat good looks like
Level 1: FoundationalA two-page policy signed by a founder, and an owner against every vendor in the register.
Level 2: ManagedA named part-time lead, a stated risk appetite, and clear roles for security, legal, finance and privacy.
Level 3: DefinedAn annual programme review that goes to the board or leadership, with actions tracked to completion.
Level 4: OptimisedThe programme itself is independently assured, and governance reporting is part of the company’s risk framework.

With a spreadsheet

Doing it without any special tool.

  • Start from the OpenVMO policy template and fill in the names. Two pages is enough at Level 1.
  • Add an "Owner" column to the register and refuse to leave it blank.
  • Put the annual review in the calendar of whoever approved the policy.

Common mistakes

Where teams usually go wrong.

  • Making the security or operations person the owner of every vendor. They coordinate; the team that uses the vendor owns it.
  • Writing a 20-page policy nobody follows. Auditors test what you do against what you wrote.
  • Approving the policy once and never reviewing it.

Crosswalk

How this maps to the frameworks you are audited against.

FrameworkRelated requirements
SOC 2 (Trust Services Criteria)CC9.2, CC1.3, CC3.1
ISO/IEC 27001:2022A.5.19, A.5.2; clauses 5.2, 6.1, 9.3
NIS2 and Implementing Regulation 2024/2690Art. 20; Art. 21(2)(d); CIR 2024/2690 Annex §5.1
DORAArt. 5; Art. 28(2); RTS 2024/1773
NIST CSF 2.0GV.SC-01, GV.SC-02, GV.SC-03

The mapping is informative, not legal advice: it points to where each framework deals with the same topic. The full mapping for every practice is on the crosswalk page.

Templates

Templates for this domain.

  • Vendor management policy (Markdown): A two-page policy with every section a startup needs. Fill in the names and sign it.

All OpenVMO templates are on the templates page.

Next domain: Vendor inventory.

About the author

Stephen Dale · Founder, Vendorapp

Stephen founded Vendorapp after a career in vendor management and third-party risk on the buy side, most recently as Director of Vendor Management at DTCC Digital Assets, following ten years at Citi.

Stephen Dale on LinkedIn

Run OpenVMO with a spreadsheet, or with a tool.

Every practice can be met with the free templates. If you would rather not maintain the register by hand, Vendorapp implements most of OpenVMO and has a free plan.

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