Prevalent - Third-Party Risk Management’s Post

Organizations face diverse risks in today's interconnected global economy, including natural disasters, geopolitical tensions, cybersecurity threats, regulatory changes, and supplier bankruptcies. These risks can disrupt operations, harm financial performance, and damage reputations – making effective Supply Chain Risk Management (SCRM) crucial for business resilience. This white paper examines SCRM priorities and requirements across multiple industries, including manufacturing, retail, healthcare, technology, food and beverage, government, pharmaceuticals, life sciences, and biotech. https://buff.ly/3KTnmnV Download the comprehensive guide to: 🏗️ Explore critical strategies for building a robust SCRM program 🚧 Gain insights into the unique challenges and requirements of various industries 📝 Learn how to effectively manage supply chain risks across diverse sectors Equip procurement and supply chain professionals with the knowledge to develop and implement SCRM programs that address a wide range of industry-specific challenges. #TPRM #VendorRisk #RiskManagement #SCRM

⚡ Every company has vendors and suppliers. These terms are used interchangeably in third-party risk management, and although they both fall under the umbrella of "third party," they are not the same thing. Vendors and suppliers can present different risks to your business and may require other tactics for accurately assessing risk. So, what is the difference when it comes to TPRM? 🤔 https://buff.ly/3So0AYz A vendor is a company that provides something your company uses to conduct its ordinary business operations. This may be a finished good or a service you use as a customer. A supplier is a third party that provides essential specialized goods, services, or raw materials to another organization. Suppliers play a crucial role in your value chain, offering everything from raw materials and components for manufacturing to technological infrastructure for SaaS platforms. A supplier is a third party that provides essential specialized goods, services, or raw materials to another organization. Suppliers play a crucial role in your value chain, offering everything from raw materials and components for manufacturing to technological infrastructure for SaaS platforms. While there is overlap, supplier risks often focus more on the production and supply chain aspects, whereas vendor risks emphasize end-product quality, compliance, and service delivery. Understanding these nuances – and assessing, monitoring, and mitigating them accordingly – is vital for your TPRM program. #TPRM #VendorRisk #RiskManagement #SupplierRisk

🔎 For a law firm, a multi-million-dollar payout is just the tip of the iceberg when it comes to the damage cyber-attacks can cause. Brad Hibbert, Chief Operating Officer & Chief Strategy Officer of Prevalent - Third-Party Risk Management, shares key insights on mitigating vendor risks for law practices.

Conducting third-party due diligence is essential to a comprehensive third-party risk management program. 📋 A strong due diligence strategy provides early-stage insights to make more informed vendor sourcing decisions. https://buff.ly/48jLo4B While third-party due diligence plays an essential role throughout the vendor lifecycle, it is crucial during the sourcing and selection stages, as well as during intake and onboarding. Effectively managing third-party risk is a significant challenge for almost all organizations. It requires an approach that aims to understand and mitigate risk throughout the vendor risk lifecycle. Effective due diligence on third parties allows you to identify risks before signing contracts and committing significant financial resources and time. Third-party due diligence also uncovers hidden risks in the supply chain, like poor ESG practices or concentration risk. A mature program uses due diligence to gain visibility into its third-party ecosystem, identify unacceptable risks, and require remediation. Consider structuring your third-party due diligence assessments around a common industry framework. This will enable your team to consistently assess vendors using similar criteria and provide familiar best-practice remediation recommendations. #RiskManagement #VendorRisk #DueDiligence

In recent years, malicious actors have increasingly targeted third-party contractors and vendors with access to critical systems and sensitive data at other, larger organizations. Continuous monitoring can alert you to exposed vendor credentials or cybersecurity lapses that could lead to a data breach. https://buff.ly/3VG1Glv Cyber risk monitoring is the practice of regularly evaluating third-party vendors to ensure that their cybersecurity policies align with best practices and don't pose an unacceptable risk to your organization. It is part of a broader third-party monitoring program. So, do you conceptualize effectively monitoring vendors for cyber risk in our increasingly interconnected and complex world? Get started with these steps: 🎛️ Define your level of acceptable risk 📋 Utilize vendor risk questionnaires 🛰️ Monitor for data breaches & exposed credentials 🔎 Monitor the vendor when onsite or when accessing your IT environment ⚡ Follow our recommended best practices Including cyber risk monitoring as part of your broader third-party monitoring program can help identify security exposures in your supply chain and business operations, ensure regulatory compliance, and reduce the risk of severe disruptions from third-party vendors. #TPRM #VendorRisk #RiskManagement #CyberRiskMonitoring