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5 Benefits of Third Party Risk Management

Outsourcing is key to succeeding in today’s marketplace. Most businesses are not equipped to handle their own IT network or ship their products themselves, or any of the other services needed to get the job done. Outsourcing allows a company to concentrate on their business and contracts other businesses to provide the service they can’t do themselves. A prime example is providing internet access for a business. Most businesses contract this service out to a third party that specializes in network support so they can continue with the business at hand and not worry about connecting online.

With all of this outsourcing, however, comes risk and that is where TPRM (third party risk management) services are essential in keeping your business secure and successful.

5 Benefits of TPRM

Protect your data from security breaches.

Cyber security is top of mind for every company nowadays, especially when the news is regularly reporting breaches at banks, credit card companies, and social media platforms. A reliable risk-management system can help you pinpoint where you have holes in security and help shape a plan to fill those gaps. This not only protects your company’s data but your customer’s as well. Reputations can be destroyed over something like a cyber attack, so be that business that customers can rely on.

All of your third parties in one place

A TPRM system can streamline your business to onboard new vendors automatically and gather information about them to assess risk electronically. This program can also set up user-friendly reports to be generated at a moment’s notice with reassessments done whenever you need them. Controlling all of the third parties in your business on one platform allows you to determine risks before they become an issue. This system will enable you to see which third parties are at the highest risk and act accordingly

Be proactive

An effective TPRM system can save a business substantial time and money by allowing them to assess the risk of a third party. You have the option of declining to do business with them as is or creating an agreement that mitigates risk as a requirement of your relationship.

Build a solid reputation

A company that takes the time to protect not just its own interests but those of its customers as well will develop a reputation in the industry as the place to do business. A good risk management system will allow you to protect sensitive data and reduce the threats of cyber-attacks which builds trust with your clientele.

Become an expert at assessing risk

The more experience a business gains in assessing risk, the easier it becomes. TPRM Companies are able to flag a risky vendor or supplier faster and avoid the pitfalls that come with not spotting the red flags in a third party before it is too late.

Peace of Mind

Above all else, you can rest easy knowing that your business is being assessed for risks 24 hours a day, 7 days a week and you will be notified of anything that could cause potential harm to your livelihood before it happens or before it causes a massive problem.

With more companies outsourcing critical elements of their business, the need for risk management of these third parties is more crucial than ever before. There are stories in the news of large corporations losing important information in cyber breaches or losing entire days of business because of infrastructure shutdowns. It is important to have an effective risk management system specifically designed for you to protect your business in the years to come.

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