Every company should ask itself one question – “Is the organization posing a threat from any third party they have appointed for themselves?”
Use of third party vendors such as suppliers, customers, licensees, agents etc. is usual these days. Such entities have assisted organizations since the very beginning. They help them carry out their operations smoothly, with utmost convenience and flexibility.
Companies are vulnerable to risks such as fiscal, operational, regulatory and reputation risk with increase in dependence on third parties. Organisations are shifting towards specialization and outsourcing with time. Thus, it helps them to focus on their core competencies by allocating key functions in their business value chain to a number of trusted outsiders.
Managing Third Party Risk
First of all, third party activity is commonly responsible of driving roughly 60% of aggregate income. In addition, it is relevant to note that mitigating the increasing risk exposures and threats that come with the third parties have overwhelmed the compliance officers.
According to a PwC report, “Third party workers are the greatest source of security disruptions outside of an organization”. Another SurfWatch labs report (Jan’17) derived that the rate of cyber-crimes associated with the third parties has doubled over the past year including publicly revealed breach.
Hence, in order to prevent themselves from the downfalls arising from security breaches, companies are taking assistance of third party management(3PM). It helps companies monitor and interact with all the associated external parties. By managing such risk, companies can analyze behavior, performance of the third parties which might prove detrimental to the company.
3PM and eGRC
In addition, third party solutions are based on innovations and framework which focus on streamlining the execution of the procedures. Further, solutions are designed to complement the internal facing governance, risk and compliance (GRC). Companies providing SaaS/cloud based services also offer 3PM solutions.
Companies involved in providing eGRC solutions maintain a comprehensive repository containing information related to the third parties such as :
Collaboration with third parties on one single platform is encouraged and they are held accountable for various activities. Also, they are expected to adhere to their roles and responsibilities in the organization.
VComply , an eGRC platform, has developed an integrated compliance strategy framework which aligns itself to the dynamic environment of any business. Its comprehensive compliance library helps organizations to assign responsibilities to their employees and vendors. It notifies them to comply with those responsibilities at a certain date and helps monitoring on real-time basis.
Businesses need to understand risks attached to third parties and should try to minimize it by encouraging collaboration and communication. Companies are flocking towards the promising eGRC industry and are performing well.
Thus, Companies providing third party management solutions have become the patrons for all kinds of organizations in the world. They help organizations to mitigate all their third party risks while preventing unfavorable data breaches.Add to favorites