Whether your organization is aware or not, it does relly on third-party services providers that help to make business processes more effective and efficient. However, working with third parties also involves risk. Companies should therefore establish a third-party risk management (TPRM) approach.
What is third-party risk management?
TPRM is a strategic approach that aims to identify, assess and manage the risk of working with third-party providers. It helps companies to better understand and manage the risks associated with their third-party providers in order to avoid compliance violations.
Why is TPRM important? “For example, companies need to check whether their third-party providers comply with the SOC2 audit standard. This is designed to ensure that third-party providers protect sensitive customer data from unauthorized access,” explains GreenPages manager Pasteris. “Data protection laws such as the GDPR are also relevant in this respect. If you are compliant yourself, it won’t do you any good if your third-party provider doesn’t comply.”
