Explosive growth of third-party services
Concerns about third-party data breaches
Shift from siloed to cross-functional risk management
Compliance with new privacy laws and regulations
As organizations become more technologically dependent, they expand their use of third parties, particularly in the IT area. Software is increasingly cloud-based, and the dwindling number of on-premise services are usually hosted by a third party.
Forrester research predicted that about 60% of security incidents this year will be the result of issues with third parties. Risks that relate to cybersecurity and data protection should be monitored. Processes and controls should be in place to manage the risks when a cybersecurity breach happens in a third party — to assess the criticality, the impact to your organization or potentially even to your customers.
In companies that take an enterprise-wide view of risk, the responsibility for risk management is less siloed. That helps all departments work together within a common framework.
As the regulatory environment evolves, organizations must manage their own compliance and include the performance of third-party partners in their compliance evaluations.
Growing role of ESG reporting
Automated TPRM
Environmental, Social and Governance (ESG) is becoming increasingly visible in non-financial reporting and public communications. Organizations are accountable for their partners’ performance as well as their own.
TPRM automation is becoming essential, to limit the time spent on administration and repetitive tasks, shifting the focus to value.
Compliance with new privacy laws and regulations
Growing role of ESG reporting
TPRM automation is becoming essential, to limit the time spent on administration and repetitive tasks, shifting the focus to value.
Environmental, Social and Governance (ESG) is becoming increasingly visible in non-financial reporting and public communications. Organizations are accountable for their partners’ performance as well as their own.