A Conceptual Model for Vendor Oversight, Compliance, and Digital Contract Risk Mitigation

Authors

  • Wasiu Eyinade  APM Terminals, Apapa Lagos Nigeria (A member of Maersk Group)
  • Onyinye Jacqueline Ezeilo  Independent Researcher, Abuja, Nigeria
  • Ibidapo Abiodun Ogundeji  AgileCore Pty Ltd, Melbourne, Australia

Keywords:

Conceptual model, Vendor oversight, Compliance, Digital contract, Risk mitigation

Abstract

The increasing complexity of global supply chains and the digitization of contractual relationships have elevated the importance of robust vendor oversight, regulatory compliance, and risk mitigation in digital contracts. As organizations increasingly depend on third-party vendors for critical services and data processing, the risks associated with vendor mismanagement, non-compliance with regulatory standards, and the vulnerabilities embedded within digital contracts have grown exponentially. This paper presents a conceptual model designed to integrate vendor oversight, compliance mechanisms, and digital contract risk mitigation into a unified governance framework. Drawing on theoretical foundations from risk management, control theory, and transaction cost economics, the model outlines key components including vendor due diligence, performance monitoring, compliance integration, and the use of advanced technologies such as artificial intelligence (AI), blockchain, and real-time analytics. The proposed model emphasizes the necessity of cross-functional collaboration among legal, procurement, IT, and compliance departments to ensure holistic risk governance. It also highlights the value of leveraging technology platforms for continuous contract lifecycle management, compliance audits, and predictive risk analysis. Case applications in sectors such as healthcare, finance, and energy demonstrate how organizations can operationalize the model to address industry-specific regulatory requirements and contract risks. Furthermore, the paper identifies potential implementation challenges including data quality issues, integration of legacy systems, and varying regulatory landscapes across jurisdictions. The conceptual model aims to support strategic alignment between vendor management and organizational risk appetite, enhance audit readiness, and foster long-term supplier relationships grounded in transparency and accountability. This work contributes to the literature on enterprise risk governance and digital compliance, offering actionable insights for practitioners and policymakers. Future research directions include empirical validation of the model across industries and the exploration of emerging technologies in contract risk prediction and enforcement. The model provides a foundation for organizations seeking to navigate the evolving landscape of vendor and contract risk in the digital era.

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2023-06-25

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Volume 9, Issue 3, May-June-2023

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Research Articles

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[1]
Wasiu Eyinade, Onyinye Jacqueline Ezeilo, Ibidapo Abiodun Ogundeji, " A Conceptual Model for Vendor Oversight, Compliance, and Digital Contract Risk Mitigation" International Journal of Scientific Research in Computer Science, Engineering and Information Technology(IJSRCSEIT), ISSN : 2456-3307, Volume 9, Issue 3, pp.842-863, May-June-2023.