Third Party Risk Management (TPRM) is the structured process of identifying, assessing and mitigating the compliance and security risks that arise from engaging suppliers, vendors and partners. It encompasses due diligence before onboarding, ongoing monitoring of third-party security posture, and contractual requirements for data protection and regulatory compliance. A mature TPRM programme ensures that external relationships do not introduce unacceptable risk to the organisation.
With supply chain attacks and regulatory expectations both increasing, effective TPRM has become a business-critical capability. Organisations should classify third parties by risk level and apply proportionate assessment measures, from self-assessment questionnaires to on-site audits. Regular reviews and clearly defined escalation paths ensure that emerging risks are identified and addressed before they materialise into incidents.