Third-party relationships have become increasingly critical in the rapidly transforming landscape of global business. Gone are the days when a company’s operations and success depended solely on its internal resources and capabilities. In the current business environment, third-party entities such as suppliers, vendors, contractors, and partners play a crucial role in a company’s growth, innovation, and competitive edge. However, this reliance on external entities also introduces a range of risks that can significantly impact a company’s reputation, financial health, and operational stability.

As the complexity of business relationships expands, so does the spectrum of risks associated with third-party relationships. These risks can stem from various sources, including financial uncertainties, reputation and brand, resilience and continuity, compliance issues, cybersecurity threats, and geopolitical dynamics. The challenge for businesses is to identify and understand these risks and develop effective strategies to manage and mitigate them.

The organization’s approach to third-party risk management needs to . . .

[The rest of this blog can be read on the EthixBase360 blog, where GRC 20/20’s Michael Rasmussen is a guest author]

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