Pioneering practices that change the game of third-party risk safely and with confidence
All over the world, many companies like have benefited from third party vendors or service providers. Third-party vendors allow organizations large or small to focus on their higher-value activities while other, less valuable ones are outsourced.
Sometimes outsourcing comes with security risks that can harm the business. As the organization grows, it becomes more vulnerable. An investment in responsive third party relationships is mandatory for supplier risk assessment to mitigate risk and ensure business continuity. Third-party risk management framework to manage cyber risks before choosing a vendor, which includes business channels, marketing partners, and anything else that has access to the corporate network. Some outsourced vendors may operate with less robust cyber protection, which may put the business at risk of cyber breach.
Third Party Risk Management (TPRM) involves the process of assessing and regulating the risks of outsourcing to third party suppliers or service providers, including providing access to data, intellectual property, finance and other sensitive information of the organization.
Due diligence determines the overall eligibility of a third party. TPRM is the process of collecting relevant and reliable information about a third party. This review, observation and management of communication is an ongoing process throughout the supplier’s entire work cycle, not a one-off. With the rise of cybercrime, it is important to ensure that not only the company’s own networks but also those of outsourced partners are secure.
Best Practices for Improving the Third Party Risk Management Framework
In order to improve the third party risk management framework, there should be a compilation of an inventory of all third parties with which the organization has a relationship. Identifying, categorizing and highlighting risks are essential activities to improve the TPRM process. Establishing a decision-making team and due diligence model play a critical role in mitigating risk and influencing governance and executive decisions. With the benchmark set up to identify three line of defense owners, third party oversight and internal audit team, helps review critical activities within the third party risk management framework. Implementing contingency plans for data breach events or when a third party is found to be of poor quality improves the approach to third party management risk.
A foolproof third-party risk management framework can protect a company’s customers, employees and operations. The level of risk businesses face today is staggering. Therefore, it is essential to proactively find third party risk management.
Over the years, MBG Corporate Services has understood the mission. Today, MBG is a trusted partner to its clients and is categorized as an experienced partner with the in-depth third-party risk management expertise that is required to manage critical information systems and data for clients and organizations. suppliers involved.
To find out more or if you have any questions, contact us:
Email: [email protected]
Whatsapp / Call: +971526406240
Click here to connect to Whatsapp
Madan Mohan is Director – Technology Consulting, MBG Corporate Services