What role does natural disaster resilience play in evaluating vendor risks?

Natural disaster resilience plays a critical role in evaluating third-party risks, especially for vendors operating in disaster-prone regions. Companies need to assess the ability of their vendors to sustain operations and meet obligations in the face of natural disasters. Factors such as business continuity plans, disaster response strategies, and the robustness of infrastructure are essential in determining a vendor’s resilience to natural disasters. Evaluating these aspects helps companies understand and mitigate the potential risks associated with relying on vendors operating in disaster-prone regions.