WHAT IS TPRM?
Third Party Risk Management (TPRM) is a process that involves identifying, assessing and mitigating the various risks that emerge over the entire lifecycle of your relationships with third parties. TPRM requires visibility of all third parties that an organisation engages with to support their customers and operational processes.
The TPRM process often starts during procurement and should continue until the offboarding process is complete.
The purpose of TPRM is to ensure your organisation’s risks related to third parties are fully understood and well managed. These potential risks are numerous and can fall under these categories:
Your business is increasingly reliant on third parties to run core services and business operations, this exposes you to risks outside your direct control, which need to be understood and managed.
The pressure to manage these risks is escalating both from within the company but also from external regulators
Key TPRM challenges include:
- Extensive and changing compliance requirements
- Lack of TPRM resources
- Various diverse processes to evaluate
- Lack of clear accountability
- Immature processes and coomunication channels
- High volume of third parties
- Lack of automation of the process and reporting
THE TPRM SOLUTION
Many of these challenges can be overcome through the use of Phinity TPRM. There are five steps to follow when automating your TPRM process.
Before leveraging automation to mature your TPRM process, identify and collect all relevant data needed, including policies, relevant third parties, stakeholders, existing risk assessment, etc
Upload your data onto the Phinity platform. Leverage Phinity’s pre-defined questionnaires and risk scoring or embed your current questionnaires and process.
Perform inherent risk profiling of your selected third parties. Automate workflows, follow-ups, and tracking to streamline the risk assessment process.
Track the progress of all your assessment in real-time. View the inherent and residual risk ratings of your third parties or extract detailed reports on individual third parties as needed. Customise the reporting to meet your needs.
Assign and track the risk items identified during your third party risk assessment through to remediation. Report on the progress of your remediation efforts.
WHY CHOOSE PHINITY?
You can easily identify high-risk third-party vendors and implement risk mitigation plans in real time, leaving your organisation's resources to concentrate on other tasks.