Third-Party Risk Management (TPRM) is a structured approach that organizations use to assess and manage the potential risks posed by their relationships with third-party vendors, suppliers, contractors, and partners. These relationships can introduce security, operational, compliance, and reputational risks that need to be identified, evaluated, and mitigated. TPRM aims to ensure that third parties meet the organization’s security and compliance standards, thereby safeguarding the organization’s assets and data.
Symosis can help you develop and operate a Third-Party Risk Management Program comprising of
Vendor Selection
Evaluate the security posture of potential third-party vendors during the selection process.
Consider security and compliance criteria as part of vendor evaluation
Risk Assessment
Identify the types of risks associated with each third-party relationship, such as data breaches, operational disruptions, regulatory non-compliance, and reputational damage.
Categorize third parties based on their potential impact and risk level.
Due Diligence
Perform due diligence assessments to evaluate the security practices of potential third-party partners.
Review security policies, practices, certifications, and history of security incidents.
Contractual Agreements
Establish contractual terms that define security and compliance requirements for third parties.
Include clauses related to data protection, security controls, incident reporting, and compliance with industry standards.
Ongoing Monitoring
Continuously monitor the security practices of third parties throughout the relationship.
Implement automated monitoring tools, regular assessments, and periodic audits.
Incident Response Planning
Collaborate with third parties to establish incident response plans and communication protocols in case of a security breach.
Remediation and Improvement
Address identified security gaps and weaknesses through remediation plans.
Provide guidance and support to third parties to enhance their security measures.
Compliance Management
Ensure that third parties adhere to relevant regulatory and compliance requirements.
Regularly verify that third parties maintain compliance with industry standards.
Exit Strategy
Develop a plan for safely terminating a third-party relationship while ensuring the security of data and systems.
Communication and Collaboration
Foster open communication between the organization and its third-party partners regarding security expectations and practices.
Effective TPRM involves collaboration between security teams, procurement, legal, compliance, and business units. Regular assessments and ongoing monitoring ensure that third-party relationships remain secure and aligned with the organization’s security objectives.
