Your company might be in danger if working with a third party. If they possess access to confidential information, they may pose a security risk; if they supply a significant factor or service to your company, they may provide risk exposures, and so forth. Third-party risk management helps companies to track and analyze the risk posed by third parties to determine where it exceeds the business's threshold. This enables enterprises to make risk-informed strategies and minimize vendor risk to a manageable level.
Pros of Implementing Third-Party Risk Management
Third parties play a crucial role in a company's success. Businesses of all sizes increasingly rely on third-party providers for innovation, development, and digital transformation.
However, putting too much trust in external people might be dangerous. A third party's risk posture is critical to a company's risk stance, adaptability, and reputation when engaging a third party. Dealing with a third-party event may be highly costly and challenging, with implications such as regulatory measures, reputational harm, and income loss. Third parties must be appropriately vetted with regular risk assessments to guarantee that an organization is safe and secure.
Process of Third-Party Risk Management
TPRM/VRM is a continuous activity you will carry out with each vendor you introduce into your value chain. Generally, the procedure goes as follows:
Stage 1: Assessment - The corporation determines the element of risk of the partnership and the amount of due diligence required. As a result, the organization assesses the third party's overall security and conducts an evaluation.
Stage 2: Collaboration - The firm and the third party cooperate on ways to close gaps.
Stage 3: Restoration - A third party fills cyber holes.
Stage 4: Authorization - Depending on tolerance for risk, the corporation accepts or denies the third party.
Stage 5: Surveillance - The corporation monitors the third party to discover cybersecurity
Predict360 TPRM/VRM Solution
Ensure business continuity with your vendors and third parties using Predict360's Vendor Risk Management System. Use Predict360 TPRM solution to mitigate the severity of data breaches involving Third Parties, protecting the organization's sensitive data that is shared with third parties and streamlining all vendors, suppliers, and third parties with just a few clicks a button. The application enables organizations to monitor and mitigate risk exposure from vendors and consultants by ensuring compliance with applicable policies and procedures, regulatory requirements, and standards.
Predict360 Third Party and Vendor Risk Management manages internal activities associated with vendors and third parties and features:
- Configurable internal Assessments (questionnaires) for internal departments for vendor due diligence to manage external vendors.
- External Assessments for non-system users (third parties and vendors) that capture relevant information about vendor activities with a review workflow.
- Integrated Administration screens to configure Vendor assessments, their types, and vendors’ products and services.
- The ability to configure Vendor Risk Analysis Dimension for Vendor Risks that categorize vendors by risk levels.
- A Vendor Risk Register that captures all necessary information regarding vendors, where multiple documents can be linked, and Vendor Risk Assessments can be initiated. It enables users to create, assign, track and manage any action item or task related to a vendor.
- A workflow process for Vendor Risk Assessments that assigns tasks with due dates and notifications to be reviewed by internal Vendor owners, with the information captured on the Vendor Risk Register having linked compliance questionnaires/checklists to assess it.
- The ability to store all vendor documentation in a dedicated, centralized, and easy-to-access location.
About 360factors Inc.
360factors empowers organizations to accelerate profitability, innovation, and productivity by predicting risks and streamlining compliance. Predict360, its flagship software product, is an AI-powered Risk and Compliance Intelligence Platform that anticipates and mitigates risks while facilitating regulatory compliance. Predict360 integrates regulations and obligations, compliance management, risks and controls, audits and assessments, policies and procedures, and training in a single cloud-based SaaS platform based on artificial intelligence to provide predictive analytics and unique insights for predicting risks and streamlining compliance. 360factors is the exclusively endorsed solution provider for compliance management by the American Bankers Association (ABA). Visit www.360factors.com for more information.