Third-party risk management tools are important for businesses that rely on external vendors, suppliers, and contractors. As companies increasingly engage with these third parties, the potential risks associated with these relationships grow.
A recent statistic highlights the urgency of effective TPRM: 84% of executive risk committee members reported that lapses in managing third-party risks disrupted their operations. An alarming situation, it’s clear that organizations must prioritize their TPRM strategies to safeguard against potential threats. Third-Party risk management software or tools can bring consistency, automation and efficiency to TPRM programs.
What Is Third-Party Risk Management Software?
Identifying, assessing and mitigating risks of vendors can be an unwieldy task. Thankfully, software applied to the practices and processes of vendor risk management allow TPRM programs to assess vendors to a desired third-party risk management framework, scale as use of vendors grows, provides consistency and can employ automation through the management and assessment cycles.
Key Features of TPRM Software:
- Risk Identification: Helps pinpoint potential risks, such as cybersecurity threats, like lapses in patching cadence, compromised assets, dark web credentials or compliance issues.
- Risk Assessment: Provides frameworks and tools to evaluate the likelihood and impact of risks.
- Monitoring and Alerts: Tracks vendor activities and sends alerts about changes in risk profiles or threshold changes.
- Reporting: Has a library of detailed reports for audits and compliance purposes.
- API: a robust API to take the data and port into any other business processes and systems of record.
By automating manual processes, TPRM software saves time, reduces errors, and ensures a more thorough risk assessment and consistency for your program goals.
Third-Party Risk Management Tools
Modern TPRM solutions generally offer those key features with some additional bells and whistles. This range of tools can meet the unique needs of different organizations. Some well-known platforms include:
OneTrust Third-Party Risk Management
OneTrust focuses on privacy, security, and compliance. It offers extensive questionnaires and automation capabilities to evaluate vendors.
FortifyData Third-Party Risk Management
FortifyData provides robust cybersecurity risk assessment tools. It uses active and passive data collection methods to give a detailed view of vendor risks.
Archer Third-Party Risk Management
This tool provides comprehensive risk assessments and monitoring features. It is popular for its scalability and integration with other governance, risk, and compliance (GRC) tools.
These tools help organizations address vendor risks across various industries, from financial services to healthcare. Some industries (healthcare, financial services, government contractors, etc.) have specific regulatory requirements for overseeing service provider, or third-party risk management, to be in compliance.
Best Third-Party Risk Management Software
When selecting third-party risk management software, organizations should consider several key features.
GRC Tools for Third-Party Risk Management
Governance, Risk, and Compliance (GRC) tools may already be employed at an organization. Many of them have modules or the ability to be used to assess vendor risk. These are essential for managing third-party risks effectively and in a process and workstream already operationalized in an organization. These tools integrate various aspects of risk management into a single platform, allowing organizations to streamline their processes.
Security Ratings
Security ratings are a feature of third-party risk management software. These ratings provide insights into the security posture of vendors, helping organizations make informed decisions about their partnerships. These are largely based on an analysis of a vendor’s external asset footprint. However, methodology varies among the cyber security ratings providers so make sure to inquire about things like asset identification methodology, age of data, refresh cycles, active and/or passive data acquisition.
Questionnaire Management
Effective questionnaire management is crucial for assessing vendor compliance. Many third-party risk management tools offer automated questionnaire features that simplify the process of gathering information from vendors.
Passive and Active Data Collection
Third-party risk management software should support both passive and active data collection methods. Passive data collection involves gathering information from external sources, while active data collection requires direct engagement with vendors through surveys, questionnaire control-based assessments and vulnerability scanning or attack surface assessments.
For more detailed information on these features, explore our third-party risk management tools.
Third-Party Risk Management Software Free
For businesses hesitant to invest in full-featured tools, many providers offer free trials or basic versions. These options can be useful for small businesses or organizations new to TPRM.
Benefits of Free Trials:
- Allow organizations to evaluate if the software meets their needs.
- Compare the new software against existing processes and tools.
- Provide hands-on experience with features like risk assessment and reporting.
Vendor Risk Management Software Options
Some tools also offer basic, no-cost versions with limited capabilities. While these are not ideal for large-scale operations, they can be a starting point for small teams to understand the value of TPRM software before making a significant investment.
Control Your Third-Party Risks Today!
Managing third-party risk management process is important for interconnected businesses. Companies face increasing threats from vendors and partners. Automation is where FortifyData comes into play.
FortifyData offers a reliable Cyber Risk Management and Cyber GRC platform designed to help companies identify, assess, and mitigate risks associated with third-party vendors in an automated fashion. Here are some of the key features that set FortifyData apart:
Attack Surface Assessments: FortifyData continuously monitors the external assets of your vendors, providing real-time insights into their security posture. This proactive approach helps you identify vulnerabilities before they can be exploited.
Auto-Validated Questionnaires: The platform simplifies compliance using technology assessment data to automatically validate vendor responses for applicable technology control questions. This reduces the manual effort required for vendor assessments and ensures accuracy.
360-Degree Risk View: With detailed dashboards and reporting capabilities, FortifyData gives you a comprehensive view of all risks associated with your third-party relationships. This visibility allows you to make informed decisions and prioritize actions based on risk severity.
Cyber Risk Security Rating Scoring: FortifyData uses patented technology to provide a clear scoring system for cyber risks and is the only Security Ratings provider to offer customizable security rating risk models. This helps organizations understand their exposure and appropriately mitigate potential threats.
Schedule a demo to take control of your vendor risk management and set your business up for success!
