3rd Party Risk

3rd party risk is the risk that companies assume when working with suppliers, outsourcers, licensees, agents and contractors. These risks to your company, data, operations and finances are created when these third-parties outside of your organization have direct access to your information. This type of risk has escalated recently because the volume of third-parties used by many companies has increased in an effort to maintain costs and increase service levels. At the same time, both regulators and company boards have realized the increasing potential for negative impact created by working with third-parties. As a result, the policies and procedures for managing, monitoring and reporting on third-party risk have come under increasing scrutiny. 

Get more information on managing third party vendor risk management. Read about vendor management best practices.