A large proportion of cyber security risks can be traced back to third parties within your supply chain. In addition, geopolitical developments and threats from cyber criminals make your supply chain more vulnerable to outages than ever before. This is why more and more regulations such as NIS-2 or DORA require an efficient TPRM framework. The targeted management of risks along your entire supply chain is the key to staying ahead of the competition. You will be supported in making the risks along your supply chain transparent and meeting regulatory requirements.
KPMG approach
To provide a comprehensive overview of our approach to TPRM, the key work packages have been summarized in a structured way. Each package helps to improve your company's security posture and demonstrates how our holistic approach aims to overcome the challenges of managing your supply chain.
TPRM-Framework Maturity Assessment
KPMG offers a comprehensive maturity assessment that evaluates the maturity of your organization's third party risk management framework (e.g. procurement, risk management departments). Risks are identified in existing processes, roles and technologies to ensure that your service providers are managed effectively. Together with you, a roadmap is created that aims to optimize your TPRM, raise it to industry standards and meet compliance requirements.
Implementation of your TPRM framework
Based on your roadmap from the previous step, it is crucial to implement the identified measures to minimize the risks and achieve industry standards and compliance with NIS-2, DORA or ISO 27001. This includes the implementation of specific processes and technical measures related to TPRM.
Your company will be supported in creating a structured record of all your service providers associated with critical business processes to ensure transparency about external partners. On this basis, a risk scoring is calculated using key factors of your service providers, such as financial stability, compliance history and operational risks. In addition, the methodology is individually adapted to the needs of your company and you are guided through the entire risk scoring process. This ensures a tailored scoring and prioritization of your most important service providers for you (core suppliers).
Our experts carry out an initial review of your contracts to ensure that all your contractual agreements with your service providers meet your company's specific requirements as well as industry-wide and compliance requirements. Business continuity requirements and Key Performance Indicators (KPIs) are integrated into contracts and Service Level Agreements (SLAs) to provide clear and measurable reporting. You can also benefit from control mechanisms that ensure continuous monitoring and adaptation of contracts to new challenges and regulatory changes.
KPMG supports your company in the creation of questionnaires that are specially designed for third-party security assessments. These questionnaires are designed to implement standards such as ISO27001, NIST, SOC2, IT-Grundschutz or PCI-DSS.
You will be offered comprehensive support in the coordination and implementation of cybersecurity assessments with your service providers so that you meet the requirements of your company. Our work steps include the planning and implementation of cybersecurity assessments, analysis of the current status of cybersecurity measures, detailed review and validation of the documentation provided and the preparation of a comprehensive final report that lists identified risks and recommends optional risk mitigation measures. Through regular and systematic reviews, we help to identify potential risks at an early stage and implement targeted risk mitigation measures.
Effective incident management and business continuity management (BCM) as part of TPRM are crucial to prepare companies for security incidents at their service providers. Our approach includes the establishment of a structured process for reporting (communication channel) and handling (potential) security incidents via defined communication channels. In addition, contingency plans are jointly developed and implemented to help maintain critical business processes even in crisis situations.
As part of the TPRM, you are offered one-off or regular training courses that are addressed both internally (to your employees and managers) and externally (to your external service providers). These training courses are supplemented by jointly designed documents to effectively impart knowledge and skills and guide participants through every step of the TPRM.
KPMG offers you the unique advantage of being able to support you directly in the implementation of the GRC tool that is right for you, from setting up or optimizing your processes. Thanks to our strong alliances with the leading providers (e.g. ServiceNow), you will be helped to exploit the full potential of efficiency, automation and innovation from the tools.
KPMG's TPRM Managed Services are tailored to monitor your daily operational and risk management tasks. This enables your company to reduce the extra work involved in monitoring your supply chain and focus on the essentials: Optimizing your supply chain and choosing the best suppliers. Our modular, subscription-based offering uses state-of-the-art technology and the in-depth knowledge of our experienced experts to refine your TPRM processes using a unique, proprietary methodology. This allows you to minimize risk and ensure that your TPRM challenges are solved in a consistent, efficient and economical manner.
Your advantages
- Insights into the current maturity level of third-party risk management and recommended measures.
- Establishment of sustainable governance structures for the implementation and management of compliance requirements.
- Improve transparency through clear communication and disclosure of third-party security practices.
- Identify and mitigate potential risks from third-party providers to avoid financial loss and reputational damage.
- Strengthen resilience to unexpected events at third-party providers.
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