Third Party Risk Management Services

Manage Third Party Risk With Third Party Management Services

Party Risk Management (TPRM): Because third parties can introduce such a wide range of risks, managing third-party risk and performance in the age of digital transformation requires close collaboration among security, risk and business functions. Together, these teams can ensure that decisions about third-party risks are made consistently across the business, and that risk and security considerations are front and center when new third parties are being assessed and evaluated. Third-party viability, criticality, performance, risk and security must be coordinated together throughout the third-party governance lifecycle.

Effective third party risk management

Effective third party risk management investigates the benefits of analytics and real-time automation to avoid costly damage to the organization. Each third-party relationship brings with it a number of risks that need to be identified in time. These risks are often multi-dimensional as they extend across suppliers, vendors, contractors, service providers, and other parties, and can have an impact on different levels of the organization such as product lines, business units, and cyber security risk. Organizations face a myriad of risks arising from third parties, including data breaches, fraud and theft, business disruption, regulatory compliance violations, and reputational damage. These risks are often fast-moving, complex and interrelated, and because they’re typically hidden within both your organization’s activities and your third parties’ activities, they can be hard to anticipate.


Improving Third-party Risk Management

  1. Ensure your third party process is practical, sustainable and flexible, by applying four guiding principles in the development of a holistic framework of standards for vetting and onboarding third parties: consistency, objectivity, balance and management oversight.

  2. Partner Business Units with Procurement to consolidate the use of third parties used for similar functions for economies of scale and risk mitigation.

  3. Remain aware of potential concentration risk for third parties used for similar and critical functions.

  4. Adopt methodologies that align with industry best practices, as well as regulatory requirements, which allows for the most effective risk ranking of a given third party’s controls.

  5. Assess controls during the process and ongoing based on risk, execute favorable contracts and ensure a solid and comprehensive onboarding process.

To understand the nature and scope of your organization’s dependence on its third parties, heed the following advice:

  1. Leverage existing business impact analysis studies to determine the criticality of each area of the business and tie that criticality to the third parties supporting each area.

  2. Identify and evaluate risks to determine the level of exposure each third party (and their products or services) poses to the organization.

  3. Assign the appropriate levels of system access to third parties and their agents based on their responsibilities and risk to the organization.

  4. Adjust third-party governance, assessment and monitoring activities based on each partners’ criticality to the business.

Third-party Risk Management Governance

Effective third-party management doesn’t stop once partners are on board and working—in fact, that’s just the beginning. Many aspects of third-party relationships can, and usually do, change. For instance, third parties may introduce new risks. Their financial situations may shift, and their employees may come and go, necessitating access changes. Therefore, it’s vital to have the right processes and metrics in place to monitor third parties, their access to your systems and data, and their overall ability to support your business objectives.

What Third-Party & Vendor Risk Management:

Third-party & Vendor Management program is a practice that ensures service providers and IT suppliers do not introduce unknown risks that can cause business disruption, reputational damage or negative impact on business performance.

Third-party & Vendor management program design. We help you develop processes, policies and procedures for all stages of the vendor life cycle.

Third-party & Vendor selection and risk assessment. When you identify prospective new vendors, we can assist with due diligence, risk rating and selection.

Contract management. Here we can review various contracts to ensure that you are protecting your organization, including data-security commitments to safeguard consumer information as well as business continuity and disaster recovery agreements to ensure that vendors can fulfill their obligations to you.

Third-party & Vendor monitoring routines. In addition, we can monitor vendor risk and performance, and review service-level agreements (SLAs), and system and organization control (SOC) reports.

Risk Cognizance delivers a comprehensive third-party risk management platform that enables your organization to effectively adapt to the ever-changing regulatory landscape.