WHAT IS THIRD PARTY RISK MANAGEMENT?
Third Party Risk Management (TPRM) is a process that involves identifying, assessing, and mitigating the various risks that emerge over the entire lifecycle of your relationships with third parties. It requires visibility of all the third parties an organisation engages with to support their customers and operational processes.
The purpose of TPRM is to ensure that your organisation’s risks related to third parties are fully understood and well managed. The TPRM process often starts during procurement and should continue until the offboarding process is completer.
Potential third party risks can fall under these categories:
THE TPRM CHALLENGE
The pressure to manage third party risks is escalating both from within the company and from external regulators.
Your business is increasingly reliant on third parties to run core services and business operations, however, this exposes you to third party risks outside of your direct control. These risks need to be understood and managed.
Key TPRM challenges include:
- Extensive and changing compliance requirements
- Lack of TPRM resources
- Various diverse processes to evaluate
- Lack of clear accountability
- Immature processes and communication channels
- High volume of third parties
- Lack of automation for the process and reporting
THE TPRM SOLUTION
Many of these Third Party Risk Management challenges can be overcome through the use of the Phinity TPRM solution.
Follow these five steps when automating your Third Party Risk Management process.
Before leveraging automation to mature your TPRM process, identify and collect the relevant data needed. This includes policies, relevant third parties, stakeholders, your existing risk assessment, etc.
Upload your data onto the Phinity platform. Then, leverage Phinity’s pre-defined questionnaires and risk scoring or embed your current questionnaires and process.
Perform inherent risk profiling of your selected third parties. Then automate workflows, follow-ups, and tracking to streamline the risk assessment process.
Track the progress of your assessments in real-time. View the inherent and residual risk ratings of your third parties, or extract detailed reports on individual third parties (when needed). You can also customise the reporting to meet your needs.
Assign and track the risk items identified during your third party risk assessment through to remediation. Lastly, report on the progress of your remediation efforts.
WHY CHOOSE PHINITY?
You can easily identify your high-risk third party vendors and implement risk mitigation plans in real-time. This also enables your organisation's resources to focus on other tasks.