Prevalent - Third-Party Risk Management

VRM is an important aspect of enterprise risk management, as vendors can introduce risks that can negatively impact an organization's operations, reputation, or compliance posture. https://buff.ly/3RWnqqH VRM activities should be conducted throughout all stages of the vendor lifecycle, including sourcing & selection, intake & onboarding, inherent risk scoring, risk assessment & remediation, continuous risk monitoring, performance & SLA management, and offboarding & termination. So, why is VRM important? Being in "reactive mode" is exhausting, inefficient, and stressful – and it's especially risky when your workload gets heavy. Vendor risk management (VRM) is no different: Having a reactive VRM program that responds to vendor risk instead of proactively managing vendor risk puts your organization in jeopardy of data breaches, privacy violations, and regulatory compliance infractions. That's why you need a clear process for proactively managing the third-party cyber risks and business continuity exposures that inevitably crop up throughout the vendor relationship lifecycle. With the right best practices in place for your VRM program, you efficiently identify, assess, and mitigate the risks associated with engaging third-party vendors or suppliers who provide goods or services to your organization. #TPRM #VendorRisk #RiskManagement

TPRM is comprised of many processes and disparate risk categories to manage. While many regulations focus on managing risks from vendors, suppliers, and other third parties, they aren't always specific about what to assess and monitor. 🧾 Join Samira Duijnmayer of Booking on July 17 as she provides insights on the top regulatory areas to consider for your program and recommends steps to take to improve TPRM compliance. https://buff.ly/45ZydGL In this session, Samira will discuss: 🌍 Key risk considerations impacting global enterprises 🛡️ Data privacy and cybersecurity regulations 🪙 International sanctions, trade, and financial regulations 🧾 ESG standards, as well as anti-corruption and bribery 🚧 How will new regulations affect TPRM - even if your organization is outside the EU, UK, or US Navigating regulatory requirements that affect TPRM can be challenging. Register now to gain insights from a leading expert! #TPRM #VendorRisk #RiskManagement

📝 Vendor risk assessments are a critical component of TPRM programs. When leveraging third-party solutions and services, it's important to understand the potential risks they can introduce to your organization. These include cybersecurity, data privacy, compliance, operational, financial, and reputational risks. Conducting assessments can help you to reveal and remediate these risks throughout the vendor lifecycle. https://buff.ly/4eVoF3j A vendor risk assessment is a process companies use to evaluate potential risks when working with third parties such as vendors, suppliers, contractors, or other business partners. It involves assessing risks during different stages of the vendor relationship, from sourcing and selection to offboarding and termination. Assessments typically include gathering information about the vendor's security, privacy controls, financial and operational data, and policies, often through questionnaires. The identified risks are then rated based on severity, likelihood, and other factors. Results are often mapped to regulatory requirements, compliance standards, and security frameworks, such as ISO and NIST. Vendor risk assessments look at a variety of factors during the different stages of the vendor management lifecycle, including: 🔦 During sourcing and selection, to identify and shortlist low-risk vendors 📥 During onboarding, as due diligence to gauge inherent risk before granting access to critical systems and data 📜 Periodically to check SLAs, evaluate contract adherence, or satisfy audit requirements 📤 During offboarding, ensure that system access is terminated and that data has been protected or destroyed according to regulations �� During incident response to determine the potential scope and impact of security breaches In short, vendor risk assessments enable your organization to proactively identify and mitigate third-party risks and help it be better prepared for when incidents do occur. Well-managed assessments can strengthen vendor relationships, demonstrate proper due diligence to regulators, and shed light on best-practice security controls. #TPRM #VendorRisk #RiskManagement

📜 The German Supply Chain Due Diligence Act (LkSG) mandates that companies operating in Germany with at least 3,000 employees implement human rights due diligence in their supply chains. This law requires businesses to take all necessary steps to prevent human rights risks, report on their efforts, remediate risks, and retain documentation for seven years. In 2024, the law will extend to companies with over 1,000 employees. https://buff.ly/3L7jIa2 Non-compliance can result in penalties of up to €800,000 for individuals and €400 million or 2% of the average annual turnover for companies. The LkSG aligns with global ESG regulations to safeguard human rights, emphasizing the importance of integrating its requirements into supplier risk management strategies. The Act requires companies to meet several obligations, including: 📡 Establish a risk management system 🔎 Perform regular risk analyses 🚧 Implement preventative measures ⚡ Take remedial action 📋 Implement due diligence for indirect suppliers 📝 Document and report Even if your organization doesn't operate in Germany, it's still worth following these best practices to assess and remediate human rights and environmental risks in your supply chain. #TPRM #SupplyChainRisk #SCRM #LkSG

Organizations are increasing their usage of third parties to cut costs and focus on core operations to improve margins and increase their competitive advantage in the market. It's essential to have a mature and agile TPRM program in place to govern those relationships. However, most companies are stuck with manual, inefficient programs that don't enable them to assess all their vendors, much less properly score and remediate the risks they find. The 2024 TPRM Study showed that despite TPRM being a top priority in organizations, 50% of companies still use spreadsheets to assess their vendors and suppliers. Because of how manual and disorganized TPRM is for these organizations, companies report being understaffed by a factor of 2, only assessing a third of their vendors and as few as 29% remediate the risks they find. The bottom line is that teams struggle with reactive, manual, disconnected, resource-intensive approaches. That's where Prevalent can help. Our proactive, process-driven model automates your TPRM program. Because Prevalent automates the collection and analysis of vendor assessments, teams can spend less time on rote activities such as collecting data and more time on true business value-added activities such as remediating risks. But don't just take our word for it – see what our customers say in our TechValidate survey. https://buff.ly/3L5NiwC #TPRM #VendorRisk #RiskManagement

A Whitepaper Infographic by Prevalent - Third-Party Risk Management, A Health-ISAC Community Service Provider. https://lnkd.in/eWwmJQNV In early 2024, Prevalent conducted a study of trends, challenges, and initiatives impacting third-party risk management (TPRM) practitioners worldwide. The results indicate that many TPRM programs “miss the forest for the trees,” as they struggle to meet the broad needs of different stakeholders, sufficiently cover large vendor ecosystems, and address risk at every stage of the third-party lifecycle.  #healthit #thirdpartyrisk #tprm

Few words instill as much dread in security and risk management professionals as "audit" - and the challenge is magnified when it extends to third-party vendors and suppliers, which requires additional resources and time. 😱 Performing a third-party risk audit means navigating a complex and often overlapping regulatory landscape. So, how can you ensure your vendors and suppliers follow sound risk management principles without exhausting your TPRM team? https://buff.ly/3VYoCfQ The key to overcoming this challenge lies in recognizing the commonalities across multiple regulatory and IT security control frameworks and baselining your compliance efforts on those commonalities. The foundation lies in these five steps: 1. Planning: Set up your program for TPRM compliance 📑 2. Due diligence and third-party selection 📋 3. Contract negotiations: Set clear expectations 📜 4. Ongoing Monitoring: Maintain vigilance 📡 5. Termination: Have a clear exit strategy 📤 These tasks will get you ahead start on meeting TPRM compliance, but remember: they are just the basics. Be sure to contact your internal audit team and external auditors to expand on this list with your organization's specific compliance requirements. #TPRM #VendorRisk #RiskManagement #Compliance

Maintaining a strong TPRM program means understanding key performance and risk metrics and clear management reporting at all levels. 📐 But, measuring risk from third parties can be complex - and once you define ways to measure risk, you still need benchmarks and standards to compare your program's effectiveness. Join Bob Wilkinson, CEO of Cyber Marathon Solutions and former CISO at Citigroup, on July 10 as he guides you through how to correlate performance and risk metrics for more informative, business-aligned TPRM program reporting. https://buff.ly/4cwdLzL In this webinar, Bob will share practical tips for: 📐 Defining and implementing meaningful and actionable TPRM KPIs and KRIs 🎛️ Leveraging risk triggers to unearth your major pillars of risk 🏗️ Fostering a "collective risk management" framework in your organization 📋 Evolving TPRM metrics from checklists to continuous risk management 📊 Incorporating KPIs and KRIs into effective management reporting at all levels This webinar is ideal for any risk leader seeking to measure and evolve their TPRM program. Register now, and you'll also gain instant access to our ebook, The 25 Most Important KPIs and KRIs for Third-Party Risk Management! #TPRM #VendorRisk #KPI #KRI

🗃️ Organizational changes such as mergers, acquisitions, and divestitures introduce complexity and fragmentation into corporate structures. Managing third-party risks is crucial to maintaining business stability and success during these changes. Business transitions happen frequently, so teams need to be prepared for them. This enables teams to anticipate different scenarios, provide insights, and build an operationally resilient TPRM mergers, acquisitions, and divestitures (MAD) program. An effective program can help you identify and assess risks associated with third parties and implement strategies to mitigate them during the transitional process before they affect your organization's business operations. https://lnkd.in/gr8X36gr We created the Strategic Guide to Third-Party Risk Management During M&A to provide essential strategies for navigating and mitigating risks effectively, including: 🔎 How to proactively identify and mitigate third-party risks during mergers, acquisitions, and other strategic events 📤 Best practices for seamless onboarding and offboarding of vendors and suppliers 📋 Essential tools and processes to ensure operational resilience during corporate transitions This white paper is designed for teams responsible for managing corporate changes, including IT Security, Procurement, Legal, Compliance, Finance, Business Unit Management, Privacy, and Supply Chain Management. Equip your team with the knowledge and tools needed to stay ahead of risks and ensure a smooth transition. #TPRM #VendorRisk #RiskManagement #BusinessTransitions

Looking forward to presenting this Wednesday on The Top 5 Current and Emerging Use Cases for AI in Third-Party Risk Management with my friends from Prevalent - Third-Party Risk Management. Click the link below for more information and to sign up for this free webinar! https://lnkd.in/e7rPb_FT