Selecting a Third-Party Risk Management Framework
Third-Party Risk Management (TPRM) Frameworks
So cybersecurity professionals can systematically understand risks, whilst making sure things don’t fall through the cracks, frameworks are used to conduct assessments. These assessments cover the various risks faced by a business, including:
- Security Certifications
- Data Protection
- Security Governance
- HR Security
- IT Operations
- Software Development
- Network and Cloud Security
- Physical Security
- Business Resilience
- Supply Chain Management
- Financial Risk
- Environmental, Social and Governance (ESG)
More Than Security Certifications
It is often just tempting to look for security certifications like Cyber Essentials Plus accreditation, ISO27001:2013, alignment with the NIST Cybersecurity Framework, PCI DSS compliance and SOC 2 reporting.
Unfortunately, these are just one part of the mix and don’t give you a holistic picture of the risks associated with a supplier. TPRM platforms like Risk Ledger will ask suppliers about their certifications, but also ask a holistic set of questions about other risks. You can learn more on our Supplier Assessment Framework Knowledge Base.
Reducing the Overhead of Risk Assessment
It is important that the risk management frameworks are broad enough to incorporate all these risks, but reduce the overhead for both vendors and suppliers. This is where tools like Risk Ledger help, as we automate the questionnaire process for customers. For suppliers, they can complete their risk assessment once and share it with multiple customers. Moreover, Risk Ledger then allows customers to access fourth and fifth party risk assessments, accessing insights for the vendors of vendors.