Organizations are relying more on third party vendors to ensure faster production outcomes, meet tight delivery timelines, and lower costs. However, while expanding their operational ecosystem through third party suppliers to augment their products and services, they get exposed to unforeseen risks.
Risk and compliance objectives are no longer limited to traditional organizational boundaries, rather organizations now responsible for the actions of their third-parties. Third party risk management is the process of analysing, controlling, and monitoring the risks presented to an organization by a third party vendor.
Business can expose themselves to increased threats due to lack of dedicated third party risk management initiatives. These risks can be complex since it involves various stakeholders from different business functions accessing multiple systems and processes. Some key drivers of third party risk management include:
Adhearsys adopts a lifecycle approach to manage your third party risk management needs which includes planning, assessment, remediation, and periodic monitoring and improvement.
Requirement: Identify the objectives (policies & standards) and compliance needs.
Planning: Align resources and set roles & responsibilities to execute risk assessments. Populate and centralize third party catalogue, MSA’s, and engagement data in the risk management system.
Scoping: Categorize third-party vendors as per the requirements This reduces redundancy in questionnaires improving the timelines for completing assessments.
Execution: Execute risk assessment exercise to identify compliance and risk score. Assign relevant questionnaire to respective vendor SPOC and gather responses and artefacts. Employ risk-based segmentation can to effectively categorize third parties and prioritize monitoring.
Remediation: Analyze identified issues and remediate them with corrective measures. Assessor provides feedback to vendor SPOC after questionnaire response review and provides actionable advices to close critical observations. Issues or observations identified also drives the risk identification and remediation process.
Monitoring: Continuous monitoring of vendor performance by comparing current assessment with previous assessment to minimize risk scores.
Adhearsys has the expertise to design end-to-end third party risk management process with industry based best practices and implement a fully automated third party risk management system through a leading GRC platform - RSA Archer.