All your external partners are extensions of your company—and their risks are your risks. A study from Deloitte Global found that 70% of organizations had recognized an increase in third-party risk, but they still felt ill-equipped to manage it.
In the age of globalization, your critical suppliers can be anywhere in the world, including “in the cloud,” which poses a unique set of obstacles for which your team must be prepared. Our white paper outlines three challenges of third-party risk management (TPRM):
- Complex Vendor Networks
A vendor is not just a single entity. Every organization has its own partners and subcontractors, which poses a risk—especially when your reputation depends not just on their security, but all their partners’ security as well.
- Inefficient Due Diligence Process
Due diligence most often comes in the form of a questionnaire that can involve hundreds of questions and become a tedious process for providers and consumers of services. In turn, this can frustrate function managers who need provider services to enhance their operations or expand product offerings.
- Increased Regulatory Pressure
Without proper policies in place for third-party vendors, companies could face serious compliance issues. Many regulations mandate that risk management policies extend to third-party vendors, outsourcers, contractors, and consultants. These third (and fourth) parties have the potential to insert risk into your environment because they are outside your direct sphere of control.
TPRM is a multifaceted challenge, and successfully managing it requires an integrated approach. Read our white paper to discover five signs of an effective TPRM strategy to make sure your plan is on the right track.