This research explores the critical domain of risk management in digital vendor management. As organizations increasingly rely on external vendors for technological solutions, the digital ecosystem introduces multifaceted risks ranging from cybersecurity threats and vendor financial instability to compliance challenges. The significance of effective risk management is underscored by its role in safeguarding operational continuity, data security, and regulatory compliance. Identifying key risk factors, including evolving cybersecurity threats and operational disruptions, forms the foundation for developing a comprehensive risk management framework. Challenges in implementing risk management strategies include the lack of visibility into vendor security practices, the complexity of diverse vendor ecosystems, and resource constraints. Overcoming these challenges necessitates a proactive approach, integrating strategies such as comprehensive vendor risk assessments, continuous monitoring, contractual safeguards, and leveraging technology solutions. The conclusion emphasizes building resilience in digital vendor management through a collective commitment to transparency, collaboration, and continuous improvement. As organizations navigate the dynamic digital landscape, emerging trends such as increased regulatory scrutiny, a focus on third-party risk management, and the integration of AI and automation shape the future trajectory of risk management strategies. This research contributes to understanding risk management in digital vendor management, providing insights and strategies for organizations to navigate the complexities of the digital ecosystem effectively.