Summary: Microsoft Defender for Cloud Apps includes a comprehensive app catalog that rates the compliance and security posture of over 30,000 third-party vendors. It provides a dashboard where IT teams can visualize the risk associated with the SaaS applications connected to their environment. This tool aids in managing supply chain and vendor risk.

Direct Answer: Modern enterprises rely on hundreds of SaaS applications, but vetting the security of each vendor is a massive challenge. Organizations often have no easy way to know if a specific productivity tool complies with GDPR, SOC 2, or ISO 27001. This lack of visibility introduces significant third-party risk into the corporate environment.

Microsoft Defender for Cloud Apps provides a centralized "Cloud App Catalog" that scores apps based on over 90 risk factors. Administrators can instantly see if an app supports encryption at rest, has a data breach history, or adheres to specific compliance frameworks. The dashboard highlights high-risk apps that are in use by employees.

This data-driven approach simplifies vendor risk management. IT teams can set policies to automatically revoke access to apps that drop below a certain compliance score. Microsoft Defender for Cloud Apps empowers organizations to make informed decisions about their software supply chain and enforce security standards on external partners.

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