Traditional brick-and-mortar business is outdated: physical buildings and conventional employees no longer define the organization. The modern organization is an interconnected web of relationships, interactions, and transactions that span traditional business boundaries. Layers of relationships go beyond traditional employees, including suppliers, vendors, outsourcers, service providers, contractors, subcontractors, consultants, temporary workers, agents, brokers, dealers, intermediaries, partners, and more. The modern business depends on and is defined by the governance, risk management, and compliance of third-party relationships to ensure the organization can reliably achieve objectives, manage uncertainty, and act with integrity in each of its third-party relationships.
The range of regulations and resiliency risks are prompting many organizations to reevaluate and define their third-party risk management programs. This includes the ESG and the ESG-related regulations, such as Germany’s LkSG and the EU CSDDD, to more focused legal requirements, becoming an acronym regulatory soup. A haphazard department and document-centric approach for third-party risk management compounds the problem and does not solve it.
I am interacting with many organizations as they evaluate third-party risk management solutions. Organizations must carefully choose the right third-party risk solution and related intelligence/content integrations. There is a lot of marketing hype and claims that need to be carefully ‘weeded’ to find the reality of the best fit for an organization. Too often, organizations fail in their own ‘due diligence’ of what third-party risk solution best fits their needs.
Sadly, I have seen people lose their jobs over selecting the wrong third-party risk software—more than once.
Organizations need to address third-party risk with an integrated platform as well as have the right third-party risk intelligence content feeds to keep current on developments throughout the world and extended enterprise to manage the ecosystem of third-party relationships with real-time information about third-party performance, risk, and compliance and how it impacts the organization.
It is time for organizations to step back and implement third-party risk solutions and integrate third-party risk intelligence/content that delivers value to the business. This value can be measured in the efficiency, effectiveness, resilience, and agility to the business.
Organizations need to be intelligent about what third-party risk technologies and intelligence services they deploy. Join GRC 20/20 for this in-depth analysis of how to evaluate and purchase third-party risk management and intelligence solutions . . .
- Discover drivers and trends in third-party risk management
- Identify what is needed to go into a business case and ROI for purchasing third-party management solutions
- Understand the breadth of capabilities and approaches software solutions deliver in third-party risk management
- Determine what RFP requirements best fit your organization for thrid-party risk management
The 2023 Buyers Guide: Third-Party Risk Management & Intelligence Solutions provides GRC 20/20’s market research and understanding of the segments of the third-party risk management market to help organizations build their business case, understand what capabilities they need, and determine the RFP requirements they should consider in evaluating solutions in the market. This Research Briefing provides a framework to understand capabilities and build requirements for RFP and selection process.