Global third party ecosystems are now an important source of competitive advantage for businesses, but with advances in technology and an increasing reliance on vendors, organizations expose themselves to new risks. Ignorance is no excuse; failure to properly assess these third party risks can result in operational and reputational damage, fall in market value or even huge fines from regulators. Third Party Risk Management is a practical, step-by-step guide to building a comprehensive third party risk management programme, from creating a full vendor inventory, risk ranking, onsite visits, audit requirements, and reporting the results.
Third Party Risk Management also covers the strategic considerations of successfully communicating a new programme, including corporate risk appetite, alignment with business goals, and the importance of executive management support. With expert advice on software-aided third party assessments, continuous monitoring, cyber threats, and other recent challenges and innovations, this book is essential reading to manage and minimize third party risk in any organization.