Third Party Risk Management is the process of assessing, managing and monitoring the risks associated with working with external parties.
Third-party refers to any individual or organisation that is not part of your company, but with whom you have a business relationship. This could be your suppliers, contractors, service providers, etc.
Risk management is the process of identifying, assessing and managing risks. It helps organizations minimize the potential impact of risks on their business operations.
There are many benefits to implementing a third-party risk management program, including:
- Improving cybersecurity
By assessing and managing the risks associated with working with external parties, you can help reduce the overall cybersecurity risks to your organization.
- Enhancing sustainability
A third-party risk management program can help you ensure that your organization’s activities are sustainable and do not put undue strain on the environment or local communities.
- Creating a more robust ecosystem
By assessing and managing risks associated with working with external parties, you can help create a more robust ecosystem of businesses that are less likely to experience disruptions.
The following are five simple steps to help you get started with third-party risk management:
By following these simple steps, you can effectively manage the cybersecurity risks associated with working with third parties. Doing so will help to protect your organization’s data and reputation while maintaining a strong cybersecurity posture.