SIG University Certified Third-Party Risk Management Professional (C3PRMP) program graduate Mitchell Gustafson describes why becoming familiar with third-party risk management is so crucial for your business team.
All companies rely on a third party, if not multiple. Therefore, it is critical to pick the right ones. Choosing a third party aligned with your company’s third-party risk framework and understanding your company’s overall objective will make your organization more robust and competitive in the long run. I will begin by defining what a third-party is and then shed light on these topics: the main drivers of third-party risk management, the steps of third-party lifecycle management, and why third-party risk is often overlooked.
A third party is a business relationship between your company and another entity that is not your customer, including an affiliate company. When we think about third parties, we are usually thinking about vendors. Other examples can be service providers or outsourcers. In this Global environment, corporations are engaging with countless third-party’s to complete their business needs. Unfortunately, with every third-party arrangement comes an ever-growing scope of risk. As more and more companies begin to rely on third-party relationships, effective risk management, due diligence, and continuous monitoring need to grow with it.
Mitchell Gustafson, Third Party Risk Analyst, NationsBenefits
Becoming Familiar with Third-Party Risk
SIG University Certified Third-Party Risk Management Professional (C3PRMP) program graduate Mitchell Gustafson describes why becoming familiar with third-party risk management is so crucial for your business team.
All companies rely on a third party, if not multiple. Therefore, it is critical to pick the right ones. Choosing a third party aligned with your company’s third-party risk framework and understanding your company’s overall objective will make your organization more robust and competitive in the long run. I will begin by defining what a third-party is and then shed light on these topics: the main drivers of third-party risk management, the steps of third-party lifecycle management, and why third-party risk is often overlooked.
A third party is a business relationship between your company and another entity that is not your customer, including an affiliate company. When we think about third parties, we are usually thinking about vendors. Other examples can be service providers or outsourcers. In this Global environment, corporations are engaging with countless third-party’s to complete their business needs. Unfortunately, with every third-party arrangement comes an ever-growing scope of risk. As more and more companies begin to rely on third-party relationships, effective risk management, due diligence, and continuous monitoring need to grow with it.