By: Kaarthick Subramanian, ComplyScore
ComplyScore has released a new Ebook in our series exploring enterprise third-party risk management (TPRM) – Proactive Third-Party Risk Management: Why Should You Move Away from a Reactive to a Proactive Third-Party Risk Management Capability?
The modern business ecosystem requires digital collaboration. Supporting your core business mission and operations requires sharing data with essential vendors and third parties, including APIs and privileged network access. However, that level of sharing exposes you to ongoing risk that needs to be managed effectively.
Organizations simply reacting to events within their risk environment are falling further behind the security curve. Relying on outdated and operationally complex manual processes to manage third-party risk is a recipe for failure. A 2019 Ponemon study reveals how endemic reactive TPRM remains: nearly a quarter of surveyed enterprises have "no regular schedule" for vendor assessments.
That needs to change. Understanding the benefits of adjusting a proactive TPRM stance is key to getting buy-in from your senior executive team:
- Non-compliance carries an extremely high cost, and regulatory fines are only the beginning of potential cost downside.
- Customers are more inclined to do business and continue doing business with companies they trust.
- Technology solutions unlock the door to additional gains, including insights into decisions that can drive efficiency, reduce costs/resource inputs, and support continuous improvement.
- Proactive TPRM is not simply a compliance obligation or a necessary expense that should be minimized: it's a vital investment that can drive ongoing value. Proactive TRPM Is Faster, More Effective, More Cost-Efficient, and Delivers Ongoing Value Recent high-profile hacks, breaches, and security incidents reveal the perils of the current digital landscape. From SolarWinds and British Airways to Equifax and Target, companies are discovering that reactive, largely manual approaches to TPRM create exposure to substantial privacy, compliance, reputational, strategic, and financial risks.
The good news is that implementing a proactive vendor risk management program is less a wholesale revolution and more an achievable evolution: the process is understandable, manageable, customizable, and affordable. And becoming proactive in your TPRM processes and operations is faster and much less complex when you have an experienced partner like ComplyScore at your side.
Read Our Third-Party Risk Management Ebook and Make Better Risk Decisions
ComplyScore is an experienced vendor risk management partner that helps organizations implement essential, proactive risk management capabilities. We are a strategic partner that assumes the burden of managing and controlling proactive TPRM programs within a risk-based approach with the ability to scale and perform within budgets.
Proactive Third-Party Risk Management: Why Should You Move Away from a Reactive to a Proactive Third-Party Risk Management Capability? can help you better understand how a shift from a reactive to a proactive TPRM stance can deliver immediate benefits to your organization. We're happy to provide this resource to help organizations make more confident risk decisions.
