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Third-party risk management best practices and why they matter
2024-01-29 05:50

With organizations increasingly relying on third-party vendors, upping the third-party risk management game has become imperative to prevent the fallout of third-party compromises.

Why you must do TPRM. Third-party risk management offers numerous advantages for companies.

Organizations should establish a strong risk intelligence team to continuously monitor third-party vendors and make sure to have leadership support when investing in due diligence and regulation compliance.

"Organisations with higher TPRM maturity were more resilient and more agile to adapt to challenges in an ever?changing external environment. The best organisations have shown that a comprehensive framework react quicker to the impacts of any adverse events," a Deloitte 2023 Global third?party risk management survey found.

Another step forward consists in the implementation of centralized risk management.

The 2023 EY global third-party risk management survey revealed that 90% of organizations are heading toward centralized risk management, allowing them to "Assess [their] third-party risk as a whole, apply consistency, prioritize risk and plan to make optimal use of resources to manage or mitigate risk."

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