Third-Party Risk Management

Whether it is referred to as third-party risk, vendor management, supply chain management, or something else, organizations must recognize the risks of operating as an extended enterprise. Today’s interconnected business models enable companies to leverage partnerships to manage costs and increase competitive advantage.  The risks this sharing process poses to those assets include security protections and associated breach risk, availability standards and associated operational risk, ownership rights and associated strategic risk, and other key risk points across financial, operational, reputational, and legal areas. 

Asureti works with clients to implement a risk-based action plan for third-party risk management.  This can include program design, implementation, or operation of onboarding and periodic due diligence reviews.

Asureti’s Third Party Risk Management Framework

Governance / Program Structure: a governance and program standard, incorporating policy, classification structures, and ongoing monitoring functions will establish the baseline and framework to support management of external partners. 

• Key to appropriate governance is identification of third parties utilized by the organization. 
• A risk rating or classification structure includes assessment of data being shared, nature of the vendor’s operations, potential customer impact, regulatory considerations, and level of dependency on the vendor for ongoing operations (e.g., system availability or other operational requirements).

Operational Third Party Life Cycle Management: a full third-party risk management program includes the entire lifecycle process for managing vendor relationships — from planning and selection to ongoing monitoring.  This includes assigning responsibility for relationship management, contract management processes, and service-level monitoring.

Data Protection Risk Management: Specific activities for monitoring and validation of vendor data protection practices must be aligned with organizational requirements. However, certain focus areas are appropriate for most companies.   Key requirements may apply for specific data types or industries; the Health Insurance Portability and Accountability Act and General Data Protection Regulation are key examples of regulations including specific requirements in regard to third parties.  Asureti’s content accelerators can aid in defining and implementing the review process.

Technology Integrations: This component includes implementing and operating key systems to enhance effectiveness, efficiencies, and communication within the Vendor Management Framework.  Leveraging appropriate tools can provide for streamlined processes and reporting of third-party risk.