Third Party Risk Management (TPRM)
Companies rely on third parties to handle many business functions like IT infrastructure, SOC services, Payroll processing, applications development, data analytics, cloud solutions, and many more, to be able to concentrate on their core business.
Reaping the benefits of using third-parties does not come without risk. Depending on the level of third- party integration and level of data sharing/access granted to such third-parties, weaknesses at third party side could pose a risk at the company side as has been seen with Target and SolarWinds breaches. It is hence imperative to have an effective third-party risk management (TPRM) program to properly and continuously assess and manage third party risks.
Our TPRM consulting services offer a comprehensive approach to managing third-party risks, which covers the overall high-level program components as well as the on-going vendor risk management processes.
Our team of experienced consultants has a deep understanding of the latest industry trends and regulations, and they work closely with our clients to develop customized TPRM program that meets their specific needs and requirements.
The objective of TPRM (Third Party Risk Management) consulting services is to help organizations develop and implement effective TPRM program that ensures visibility over third-party risks and effective treatment plans, while maintaining a win-win relationship.
TPRM consulting services aim to achieve the following objectives
The following represents the road map to help institutions elevate their TPRM capabilities:
Setting up the TPRM Program
Management expectations for the management of third parties and related risks
This phase involves identifying the scope and objectives of the BCM project and defining the team responsible for its implementation.
Processes to manage risks across the third-party lifecycle
Tools and technology that support TPRM processes.
Reports identifying risks and performance associated with third parties, tailored toward multiple levels of management.
Third-Party Risk Management lifecycle
Gain visibility over all relevant suppliers of goods and services that meet or exceed the predefined risk threshold
Assigning a risk criticality level to each supplier to determine the level the type and level of detail required for the assessment, in line with the previously defined risk tiers
Assess the risks that a supplier introduces into the organization. Supplier assessment generally follows the organization’s risk management framework and considers whether supplier controls are in place and operating as intended
Obtain sufficient security information about the supplier, their associated 4th parties and infrastructure and reflect that on established contract under security and communications terms to ensure the ongoing operation and effectiveness of supplier security controls.
Monitor and manage the risk posture of suppliers in a manner that is relevant to the level of risk introduced by the supplier and supplier criticality. Monitoring and management processes include contractual compliance; performance reviews; addressing critical vulnerabilities; incident management; identifying and reassessing risks; addressing changes to supplier services; and performance metrics.
Upon end of supplier service, regardless of the reason, termination processes should be enacted to ensure confidentiality agreements are maintained post-relationship, company data/assets are returned or destroyed, and access to company systems and networks is terminated.
Third-Party Risk Management lifecycle
Using the processes developed as part of the TPRM framework, we would assess a number of existing vendors to measure their risk levels by analyzing responses to shared questionnaires and log detected issues, and select the best risk response that supports business objectives.
Here is an overview of the main deliverables and key milestones from each phase of a BCMS (Business Continuity Management System) implementation project: