Forrester’s recent Thought Leadership Paper highlights the growing importance of risk rating platforms in third-party risk management (TPRM). As organizations manage the rising risks tied to their reliance on third parties, these platforms have become essential for improving efficiency, accuracy, and collaboration. Here are the three key insights from the report.
1. Risk Rating Platforms Elevate TPRM Maturity
The research is clear: Organizations using risk rating platforms demonstrate greater confidence and maturity in their TPRM programs than organizations without. According to Forrester’s comprehensive analysis, which surveyed 500 security and risk professionals across various industries, a notable 66% of these professionals leverage these platforms. Furthermore, the research highlights that the adoption rate is even more among TPRM leaders, with 70% of them integrating these platforms into their risk management strategies. TPRM leaders understand that these platforms offer actionable insights to help their organizations better understand and prioritize risks as well as streamline vendor management.
2. TPRM Leaders Also Leverage Risk Ratings to Monitor Internal Risks
Risk rating platforms not only allow you to protect against external risks but also enable you to monitor internal risks. Forrester’s research shows that TPRM leaders also leverage risk ratings to augment their own security team’s detection capabilities. This enhancement is critical because in today's risk landscape threats can emerge from both outside and within an organization. In fact, Forreter's research shows that one of the key use-cases that TPRM leaders leverage risk rating platforms for is to remove shadow IT. This allows organizations to maintain standards and minimize the likelihood of security breaches. These platforms provide an invaluable “outside-in” perspective that helps security teams monitor their attack surface and verify findings from internal security scanning tools.
3. An Effective TPRM Strategy Can’t Be Ahieved in Silos
Another main takeaway from Forrester’s research is that an effective TPRM program can’t be achieved in silos. Often, TPRM programs sit within one business function and have limited input from the rest of the business. This is where risk rating platforms come into play. These platforms help foster collaboration between various internal stakeholders such as security, procurement, and legal teams to create a more holistic approach to risk management.
Forrester’s report makes it clear: risk ratings platforms are no longer optional in today’s high-stakes risk landscape. By enhancing visibility, reducing inefficiencies, and enabling collaboration, these platforms empower organizations to stay ahead of third-party risks.
Interested in learning more? Read the full report to take your TPRM program to the next level.
