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September 10, 2021

Understanding TPRM in 2021

<richtext-head>What is Third Party Risk Management<richtext-head>

<richtext-para>As a business owner, you have to take into account the risk of third party vendors and partners. Failure to properly manage third party risks can lead to significant losses in financial assets, intellectual property, or reputation damage. The good news is that there are many ways you can reduce your risk by implementing Third Party Risk Management (TPRM) software. In this blog post we will discuss what TPRM is and why it's so important for businesses today.<richtext-para>

<richtext-head>Why is TPRM Important?<richtext-head>

<richtext-para>It is important to implement TPRM software because as your business grows, so do the number of third parties you work with. This creates a significant risk that those companies will create security vulnerabilities or expose sensitive information due to poor cyber-security practices such as:<richtext-para>

  • <richtext-para>Not completing required annual SOC/CIP audits;<richtext-para>
  • <richtext-para>Not having strong password policies;<richtext-para>
  • <richtext-para>Not updating software regularly;<richtext-para>
  • <richtext-para>Leaving servers without up-to-date antivirus and antimalware protection.<richtext-para>

<richtext-para>TPRM software can help you mitigate the risks associated with third party vendors, suppliers, and partners by ensuring that they are following best practices, complying with your company's policies (e.g., security), and that their policies meet industry standards (NIST, ISO 27001, etc).<richtext-para>

<richtext-head>What is Third Party Onboarding?<richtext-head>

<richtext-para>Third party onboarding refers to the process by which you establish a working relationship with new third parties that your business will work with, including vendors, consultants or contractors. The purpose of third party onboarding is to verify information about new third parties, conduct due diligence, and verify their testimonials, references and activities.<richtext-para>

<richtext-para>Third party onboarding should be carried out in a secure manner that ensures confidentiality by preventing unauthorized access or disclosure of sensitive company data. In addition, it protects the business from potential financial risk, reputational risk, cyber-security threats including identity theft, fraud, and malware infections (e.g., ransomware).<richtext-para>

<richtext-head>What is Third Party Monitoring?<richtext-head>

<richtext-para>Third party monitoring refers to the process of evaluating third parties' business practices and performance. By performing third party risk management audits, you can compare your vendors against industry best practices such as NIST or ISO 27001 and other compliance standards (e.g., PCI DSS). The goal of this process is to ensure that your third party partners are maintaining the highest level of service and security.<richtext-para>

<richtext-para>Third Party Monitoring helps you detect potential problems before they turn into a major business risk and ensures that all employees follow company procedures. This also allows for early detection of data breaches, compliance issues or cyber-security threats (e.g., malware).<richtext-para>

<richtext-head>What is Contract Lifecycle Management?<richtext-head>

<richtext-para>Contract lifecycle management (CLM) refers to the process of managing contracts throughout their lifecycle from creation, negotiation, implementation, and renewal. A CLM system uses a combination of business rules and workflow automation to reduce time spent on contract administration by ensuring compliance with corporate policies for consistent interpretation and enforcement. In addition, it ensures that proper approvals are received before contracts are executed.<richtext-para>

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