What Is Third-Party Risk Management (TPRM)?

Effective TPRM encompasses not only implementing best practices but also maintaining robust oversight and governance mechanisms to ensure the ongoing security of external partnerships. Beyond protecting critical assets and sensitive information, TPRM involves thorough vendor assessments, contractual agreements with clear security requirements, regular monitoring of vendor compliance, and swift remediation of identified risks. By establishing a comprehensive TPRM framework, organizations can proactively mitigate the potential impact of third-party-related security incidents and maintain the trust of stakeholders.