Third-Party Risk Management (TPRM)
The increased number of breaches are related to third parties. All businesses rely on third-party service providers, and third-party risk management (TPRM) is nothing new. Regulated industries like financial services and healthcare have long been required to test and report on the effectiveness of their vendor risk management programs.
- Our experienced teams will design and Implement a Risk Assessment Framework that suits the business's size and nature, and develop an ongoing vendor monitoring program.
- The team will conduct a TMRM maturity assessment to test program effectiveness and advise management on how to address the gap and how to expand the program to meet new requirements.
TPRM Framework Considerations
- A comprehensive inventory of all third parties with whom the firm has a relationship
- A comprehensive catalog of specific customer risks to which third parties can expose the firm
- A risk-based segmentation of the supplier base
- Rules-based due diligence testing
- A disciplined governance and escalation framework
- Integrated technology and MIS workflow process and tools.
- Invest in IT tools, like data management systems, end-to-end workflow tools, and analytics
TPRM is the process of analyzing and controlling/managing risks associated with outsourcing to third-party vendors or service providers. TPRM is a component of the Enterprise Risk Management (ERM) but the increased importance of security and recent incidents of vendor credentials being exploited by hackers has lead organizations to prioritize IT Vendor Risk Management with more and more focus on technology security and compliance. In addition, IT management needs to focus more on Offshore Vendors to manage IT Security Risk, Compliance Risk, Operational Risk, Strategic Risk, Geography Risk, and Financial Risk.