Vendor Risk Assessment | Third-Party Compliance Services

ADVANTAGES

The Risk of Third-Party Engagements

As organizations flourish in today’s fast-paced business environment, it makes good sense to turn over specialized tasks to businesses that do it best via third-party engagements. These third-party arrangements give businesses the chance to focus on achieving core strategic objectives while keeping up with non-core—but still extremely important to operations—tasks related to administration, accounting, IT services and more.

While third-party engagements offer organizations many practical benefits, they do not come without a certain degree of risk. If you are considering outsourcing one or more business tasks, it is important to develop and implement the appropriate third-party controls and monitoring strategies to ensure that third-party businesses are performing effectively, efficiently and in compliance with your respective agreements. A solid third-party risk management plan can help.

PROCESS

Our Trusted Vendor Risk Assessment Services

Assessing the risks of using vendors, suppliers, contractors, or service providers for a certain task in its respective industry.
Reviewing each vendor’s evaluation framework.
Monitoring and assessment of third-party’s risk profile and any potential areas of vulnerability.
Performing onsite third-party risk assessments, as required by your current process.
Scheduling future assessments on a regular basis.

WHAT’S INCLUDED

Streamlined Third-Party Risk Management

I.S. Partners, LLC. can help with your organization’s third-party risk management needs in a variety of ways, including:

Assisting you in developing a third-party risk management function, specifically tailored to your organization.
Creating and maintaining an inventory of third parties that includes the functions they perform, as well as the critical and/or confidential information they regularly access.
Mapping current vendor management processes to industry standards and proven risk management frameworks.
Drafting contracts that clearly define the responsibilities and expectations of the third-party.
Developing and implementing a process for monitoring performance and ongoing risk management of third parties.
Performing due diligence before engaging third parties.

GET STARTED

Take the Anxiety out of Risk Management

When you work with I.S. Partners, we make sure you are in a peak position to reap all the benefits of third-party outsourcing engagements without worry. Contact our team to get started with a free consultation.

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FAQs

What does a third-party risk management program include?

A comprehensive program should define the roles and responsibilities of the personnel involved in risk management. It should review processes for vendor onboarding and the termination of services. It should define critical risk tiers and identify types of issues that would be included in each. And of course, it should review cybersecurity policies and procedures.

What is third-party risk management?

Third-party risk management, or vendor risk management, is the practice of assessing and then mitigating the risks associated with working with vendors (suppliers, third parties, or business partners) both before establishing a business relationship and during the business partnership.

What is at stake with vendor risk management?

Today, it would be difficult to find an organization that does not rely on third-party business services in some capacity. Are you considering outsourcing one or more tasks? Do you understand the risks that a third-party business might introduce to your organization?
Take the manufacturing industry, for example. Manufacturers who have experienced some sort of harm due to the action or inaction of a third-party business associate, are more likely to suffer data breaches and poor service quality for the engaging company. Third-party risk management is the foundation for vital relationships and should be a part of every company’s internal control framework. Not doing so includes financial expenses, reputational damage, legal problems and liability, regulatory non-compliance, and operational risks, like disruptions, delays, and downtime.

Why is third-party risk management important?

Outsourcing a business function or task to a third-party is largely incredibly useful to the growth and success of an organization. However, you can’t outsource the necessary responsibility from third parties that will allow your business to run smoothly. If your third-party associate fails to perform a critical task or allows for a breach of confidential data, serious negative consequences may impact your organization.
Additionally, in heavily regulated industries—banking, payment card, healthcare, mortgage and auto lending, as a few examples—third-party risk management is often required, or at least strongly encouraged. Third-party risk management is an important part of any recognized security framework, such as the National Institute of Standards and Technology (NIST), International Organization for Standardization (ISO) and Payment Card Industry (PCI). Third-party risk management promises to reasonably ensure a third-party organization’s duty of accountability and to greatly increase your peace of mind.

Who can perform a vendor risk assessment?

A vendor risk assessment can be conducted by an organization’s internal risk assessment team or a qualified third-party auditor–such as I.S. Partners–or consulting firm with experience in vendor risk management, third-party risk assessments, information security, and data privacy. These auditors should have the skills to evaluate vendors’ security policies, internal controls, regulatory compliance, and potential risks that could arise from third-party engagements, thereby ensuring that organizations are proactively mitigating potential vulnerabilities when partnering with vendors.

Vendor Risk Assessments

Comprehensive Vendor Assessments & Continuous Monitoring

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The Risk of Third-Party Engagements

Our Trusted Vendor Risk Assessment Services

Streamlined Third-Party Risk Management

Take the Anxiety out of Risk Management

FAQs

What does a third-party risk management program include?

What is third-party risk management?

What is at stake with vendor risk management?

Why is third-party risk management important?

Who can perform a vendor risk assessment?

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