Skip to main content
Contact
Submit RFP

      With the increasing complexity of the global market and growing competitive pressure, corporate relationships with third parties are becoming increasingly important. Monitoring and controlling the risks that arise in these relationships is therefore essential – third-party risk management (TPRM) is becoming a strategic success factor. Our experts support you in optimising your processes – precisely tailored, efficient and comprehensive. 

      Why optimised third-party risk management is essential

      Companies are currently faced with the complex task of making value chains and supply chains more resilient, securing business-critical processes and effectively managing geopolitical dependencies. At the same time, dynamic regulatory requirements and increasing digital networking require the efficient and secure use of technologies. The goal: to increase stability and performance in a sustainable manner. Against this backdrop, reliable and trustworthy third parties – such as suppliers, service providers, software and software-as-a-service providers, distributors and consultants – are crucial to staying competitive.

      Integrating third parties into the processes and procedures of one's own organisation is essential, but it also entails various risks, including:

      • Dependencies on third parties
      • Disruptions along the supply chain
      • Failures of critical services
      • Regulatory and compliance risks
      • IT and cyber security risks
      • business continuity risks
      • Strategic and financial risks
      • Reputational risks

      These risks must be managed proactively. With an efficient third-party risk management programme, they can be identified, assessed and controlled in a structured manner.

      auto_stories

      Developments in risk management for third parties - with a focus on the use of AI, data quality and organisational integration.
      Download now

      What matters for successful third-party risk management

      emergency

      A third-party relationship is any business connection between an organisation and another natural or legal person.

      Subcontractors of the third party, known as fourth parties, are also affected by this.

      emergency

      TPRM encompasses the risk management of third parties throughout their entire lifecycle.

      This extends from onboarding to ongoing monitoring and offboarding, including reporting to management.

      emergency

      The basis for efficient TPRM is a risk-based approach.

      This ensures that effort and attention are focused on those third parties that pose the greatest risks to the organisation.

      emergency

      Clear roles and responsibilities in a three lines of defence model are essential.

      This ensures effective control and enables a timely response to new risks or requirements.

      emergency

      It is important to embed automation and intelligent workflows throughout the entire TPRM lifecycle.

      This allows processes to be accelerated and hidden risks to be uncovered.

      emergency

      Managed services help companies scale capabilities and increase efficiency.

      At the same time, companies retain control over governance and strategy.

      TPRM: Why action is needed in practice

      Many companies have recognised the need for third-party risk management. However, research shows that the need for smooth, fast and efficient processes is often hampered by an isolated view of risks and the typically slow and cumbersome processing of information requests relating to third parties. 

      The current approach to this issue often involves a multitude of manual and sequential processes for obtaining and processing data from third-party providers. There is a growing need for technological solutions and the use of artificial intelligence (AI) to raise the maturity level of existing structures. 

      There is a need for action, as a lack of knowledge and control over third parties can lead to damage. Globally active companies in particular are exposed to high risks and must comply with constantly changing regulatory requirements that can limit their performance and jeopardise their reputation.

      Ready to talk? Contact us

      How we support you

      • We support you with a comprehensive concept to transform TPRM from a defensive necessity into a strategic advantage – with expertise, technology and global scaling.
      • Benefit from end-to-end support and the combination of expertise, modern technology and a powerful managed services model.
      • The approach is multidisciplinary and integrates experts from risk management, procurement, compliance, forensics, technology, cybersecurity and ESG to design, implement and continuously improve TPRM programmes.
      • Managed services combine automation, AI and specialised expertise in modular, subscription-based solutions across the entire TPRM lifecycle – from onboarding and due diligence to continuous monitoring and offboarding.
      • Key benefits include efficiency gains (reduced administrative effort, faster onboarding), risk reduction (proactive identification and control), strategic insights (advanced analytics and reporting) and operational resilience (integrated TPRM and ERM, global resources).

      More KPMG insights for you

      Your contacts